may 2019 | americanbanker.com the rise of the the …...jacqueline howard, ally 26 lindsay lawrence,...

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May 2019 American Banker 1americanbanker.com

28

May 2019 | VOL. 129 | NO. 5Contents

Briefings4Lessons from an ‘Insulting’ AdA diverse Boston neighborhood got offended by a TD Bank poster. Here’s what other banks can do to avoid similar backlash

5Really ROSIEHow Regions Optimal Solutions Intelligence Engine, aka ROSIE, is helping boost cross-sales for the Alabama bank

6Digital DisconnectAs banks push customers to self-serve channels, they’re missing out on opportunities to build a relationship. Is it possible to create a human connection in a digital age?

Metrics and Measures8The Top 200Publicly traded banks with under $2 billion of assets ranked by three-year return on equity

BackPorch32Quotes from Mastercard’s Ajay Banga, Wells Fargo’s Tim Sloan, BB&T’s Kelly King and more

Kristen Bitterly, Citigroup 22

Rachel Bryant, Regions Bank 22

Camille Burckhart, Popular 23

Chantel Chase, Zions Bancorp. 23

Lian Duan, China Merchants 24

April Frazer, Wells Fargo 24

Emily Girsch, Lincoln Savings 25

Jacqueline Howard, Ally 26

Lindsay Lawrence, 26First Foundation Bank

Carrie Lichter, Fifth Third 27

Erika Marquez, Sumitomo Mitsui 27

Abigail Mrozinski, Wilmington 28 Trust

Jennifer Upshaw, Synovus 28

Uma Wilson, UMB Bank 29

Rana Yared, Goldman Sachs 29

The Purpose-DrivenChief ExecutiveHow a rapidly changing workforce, the rise of socially responsible investors and a more activist public have fundamentally changed the role of the bank CEO

12THE FUTURE OF LEADERSHIP

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ALSO INSIDE

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20

The Most Powerful Women in Banking: NextGet ready to meet 15 women — ages 40 and under — whose accomplishments and influence set them apart.

001_ABM_0519 1 4/12/19 6:38 PM

2 American Banker May 2019

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

CHIEF EXECUTIVE OFFICER....................................Gemma PostlethwaiteCHIEF FINANCIAL OFFICER ...........................................................Sean KronEVP & CHIEF CONTENT OFFICER .................................David LongobardiCHIEF STRATEGY OFFICER ........................................................Jeff ManciniCHIEF DATA OFFICER ............................................................ Christian WardSVP, CONFERENCES & EVENTS .......................................... John DelMauro VP, PEOPLE & CULTURE ...................................................................Lee Gavin

Volume 129, No. 5

american banker.com

Executive Editor Bonnie McGeer Art Director Robin Henriquez

Contributors Laura Alix, Hilary Burns, Penny Crosman, Suleman Din, Victoria Finkle, Rob Garver, Alan Kline, Hannah Lang, Jackie Stewart, Kevin Wack

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Editor’s ViewWhat’s going on @americanbanker.com

Putting M&A on the Back BurnerValley Bank in Wayne, N.J., did many acquisitions under its previous chief executive. Its new CEO, Ira Robbins, has taken a markedly different approach, prioritizing technology while adding employee benefits such as volunteer work days and adjusting compensation to factor in Valley’s overall performance.

CECL Spells TroubleThe new accounting standard won’t make community institutions safer, though implementation is proving burdensome and could restrict access to credit, Rep. Blaine Luetkemeyer argued in a BankThink article. Its “potentially drastic consequences,” he wrote, “are looming over communities across the country.”

Change agentIra Robbins has shaken things up since becoming CEO of what is now Valley Bank

• Added employee perks (volunteer time, tech bar)

• Adopted shorter bank name

• Cut 60 corporate jobs

• Formed fintech partnerships

• Increased annual tech spending by $20M

MOST READ MOST SHARED

www.americanbanker.com

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“The key to this business is advice. The way we combine technology and our advisors to deliver it is what sets us apart.”— RHOMES AUR CEO, FTB Advisors, Inc. EVP, First Tennessee Bank

Rhomes Aur and FTB Advisors saw an opportunity to establish a new level of advice delivery. By combining technology with the bank’s hometown culture, they proactively engage their clients in all types of markets to develop solutions that evolve with their unique needs. Watch Rhomes’s story, and learn how Fidelity is the change agent helping banks and trust companies build a future-ready business.

Visit go.fidelity.com/transformnow or call 877-262-5950.

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FTB Advisors is a client of Fidelity Clearing & Custody Solutions® and is an independent company, unaffiliated with Fidelity Investments. Its business needs and results may not reflect the experience of other Fidelity clients.Fidelity Clearing & Custody Solutions provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. © 2018 FMR LLC. All rights reserved. 828391.1.0

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americanbanker.com4 American Banker May 2019

Lessons from a Marketing Misstep A diverse Boston neighborhood takes offense at a TD Bank ad. Here’s what other banks can do to avoid similar backlash

BriefingsBRANDING | ARTIFICIAL INTELLIGENCE | DIGITAL BANKING

By Laura Alix

“When you’re Downtown, but your debit card’s somewhere in Dorchester.”

TD Bank used this line on a poster promoting its instant debit card reissuance, perhaps pleased with the alliterative play on different neighbor-hoods of Boston. But in Dorchester — an ethnically diverse community that is often stereotyped as crime-ridden — the message hit a nerve.

A customer snapped a photo of the poster inside TD’s Back Bay branch, and it prompted plenty of stern words on Twitter and beyond. Boston Mayor Martin J. Walsh, who is a Dorchester native, called it “really insulting.”

Within about a day, TD had pulled

the signage from its branch and apologized.

At best, the message was another example of tone-deaf marketing. At worst, it stemmed from — and played to — racial and socioeconomic prejudices.

While some may be tempted to dismiss the incident as another product of internet-outrage culture, it offers some important lessons, marketing experts say.

Getting too cute in your advertising is risky, and trying to come across as local can sometimes read as inauthen-tic. It is important to get a diversity of viewpoints into the room when making

marketing decisions. And a swift correction is key when a message lands poorly.

After all, banks spend a lot of money on marketing — isn’t it worth the extra effort to get it right?

“I don’t think we can afford to dismiss our markets or the audiences we serve and just chalk it up to, ‘they’re critical,’ ” said Kevin Tynan, a bank marketing consultant. “We expect more from our banks now than we ever did, and you must relate to the consumer. Other people want your clients, and they will find ways to relate to your consumer.”

The marketing mishap was surprising

for a few reasons. While TD has its U.S. headquarters in New Jersey, the bank has long had a presence in the greater Boston area (though notably, not in Dorchester). TD also prides itself on diversity and inclusion, both in its ranks and in its corporate philanthropy.

Plus the ad echoed a 2017 campaign by Samsung that got flak for similar reasons. In that case, a Boston subway hub displayed the company’s large banner ads reading: “We’ll keep your work stuff safe if you go to Alewife and your phone goes to Mattapan.”

Though Alewife and Mattapan are at opposite ends of the same subway line, many read a more ominous subtext in that message: The phone wasn’t just left on the subway, but stolen — by somebody from Mattapan (another diverse Boston neighborhood).

“I’m really surprised that they basically replicated a campaign that had previously been pilloried,” said Steven Reider, president of the consult-ing firm Bancography. “You can’t tell me that if you’re advertising in the Boston market that you’re not aware of that.”

For Bill Forry, the publisher and editor of the family-owned Dorchester Reporter, it was the operative phrase “somewhere in Dorchester” that stung.

“It’s not on your desk in Dorchester or in your couch back in Dorchester,” he said. “There’s a sinister meaning to that and that’s why it engendered the response it did.”

Though it might be tempting to dismiss this as a big-bank bungle, Tynan said community banks are not immune. He suggests checking with others outside the marketing depart-ment before going public with a new ad. That can make the difference in something like nailing the correct dialect for the neighborhood you’re targeting with a Spanish-language ad.

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Lessons from a Marketing Misstep A diverse Boston neighborhood takes offense at a TD Bank ad. Here’s what other banks can do to avoid similar backlash

BRANDING | ARTIFICIAL INTELLIGENCE | DIGITAL BANKING

By Laura Alix

marketing decisions. And a swift correction is key when a message lands poorly.

After all, banks spend a lot of money on marketing — isn’t it worth the extra effort to get it right?

“I don’t think we can afford to dismiss our markets or the audiences we serve and just chalk it up to, ‘they’re critical,’ ” said Kevin Tynan, a bank marketing consultant. “We expect more from our banks now than we ever did, and you must relate to the consumer. Other people want your clients, and they will find ways to relate to your consumer.”

The marketing mishap was surprising

for a few reasons. While TD has its U.S. headquarters in New Jersey, the bank has long had a presence in the greater Boston area (though notably, not in Dorchester). TD also prides itself on diversity and inclusion, both in its ranks and in its corporate philanthropy.

Plus the ad echoed a 2017 campaign by Samsung that got flak for similar reasons. In that case, a Boston subway hub displayed the company’s large banner ads reading: “We’ll keep your work stuff safe if you go to Alewife and your phone goes to Mattapan.”

Though Alewife and Mattapan are at opposite ends of the same subway line, many read a more ominous subtext in that message: The phone wasn’t just left on the subway, but stolen — by somebody from Mattapan (another diverse Boston neighborhood).

“I’m really surprised that they basically replicated a campaign that had previously been pilloried,” said Steven Reider, president of the consult-ing firm Bancography. “You can’t tell me that if you’re advertising in the Boston market that you’re not aware of that.”

For Bill Forry, the publisher and editor of the family-owned Dorchester Reporter, it was the operative phrase “somewhere in Dorchester” that stung.

“It’s not on your desk in Dorchester or in your couch back in Dorchester,” he said. “There’s a sinister meaning to that and that’s why it engendered the response it did.”

Though it might be tempting to dismiss this as a big-bank bungle, Tynan said community banks are not immune. He suggests checking with others outside the marketing depart-ment before going public with a new ad. That can make the difference in something like nailing the correct dialect for the neighborhood you’re targeting with a Spanish-language ad.

Forry said he believes that a greater diversity of voices in the bank’s marketing and advertising teams could have helped prevent an issue like this.

“Mistakes do happen, but the best prevention here is to have a diverse group of people, whether in your C-suite or ad agency,” he said.

There is at least one more lesson in this for other bank marketers: If you do screw up, do not be too proud to apologize.

In its apology, TD said the “insensi-tive” ad does not reflect its core values around diversity and inclusion. It declined to comment further.

Forry said he received a phone call from TD’s regional president after the photo went viral on Twitter — a gesture he appreciated.

But in his view, the fact that TD lacks a presence in Dorchester made the slight in the ad worse.

“It annoys me that they would insinuate our community into their marketing if they really don’t have a presence here,” he said. “That’s part of the frustration and the angst around them doing it.”

Everything’s Coming Up ROSIERegions says its AI system is boosting revenue by helping bankers chat up customers

Who says you need a $10 billion tech budget to compete with the big banks?

Regions Financial is experimenting with a system dubbed ROSIE to help its bankers suggest the best new product or service for customers. Powered by artificial intelligence and big data, it is one of the high-tech tools the Birming-

ham, Ala., bank is counting on to compete against its deep-pocketed larger rivals.

“The value of ROSIE is the personal-ization of a unique offer that is relevant,” Chief Operating Officer John Owen said. “It also equips our bankers to have a really good, robust conversa-tion with a customer.”

Short for Regions Optimal Solutions Intelligence Engine, ROSIE pulls information from more than 350 data elements and suggests a new product or service best suited for a particular customer. For example, a branch banker talking with a customer might get a nudge to offer a credit card that the customer has already qualified for. Or if the customer has a card already, the banker might get a prompt to talk about a new feature that allows customers to lock the card from the bank’s website or mobile app.

ROSIE was one of several tech investments that Owen highlighted at Regions’ investor day in late February. The tool first came on line in the summer of 2017.

Regional banks have faced investor pressure to rein in tech spending, particularly in an environment with sluggish commercial loan demand and rising deposit costs. Bankers, however, say such spending is necessary to compete. Regions may not have a $10 billion tech budget like JPMorgan Chase, but at least it can be a fast follower.

Regions also will face stiffer compe-tition in some of its key markets if BB&T and SunTrust complete their merger as planned. Executives of both those banks have said that scale — specifi-cally, the scale needed to invest huge sums into technology — was one of the chief motivations for the deal.

This year the $126 billion-asset Regions plans to spend $625 million, or

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


Briefings

11% of its total revenue in 2018, on technology, Owen said. Of that, 42% is earmarked for new technologies, 48% for maintenance of existing infrastruc-ture and 10% for cybersecurity and risk management.

Other banks also are experimenting with AI and data analytics to broaden customer relationships. Bank of America saw early success with its chatbot Erica, for example, and Morgan Stanley uses an AI-powered system to aid its advisers.

If done well, AI tools can be an important differentiator for a financial institution, said Tiffani Montez, senior analyst at Aite Group.

“The difference really becomes around personalization,” she said. “How can you take what you know about a consumer — about how they spend money, where they spend money, what their financial goals are — and use all that information to deliver personalized experiences?”

But doing that well means showing the customer the right offer at the right time and place, and banks do not always accomplish that, she said.

Montez gave a recent personal example: She called her financial institution to report fraud on a card and, as the call ended, the contact center rep offered her an auto loan refinance. “Wrong place. Wrong time. And I had a lease, so there was nothing to refinance. Wrong offer,” she said.

ROSIE’s results so far have been promising, Owen said.

Last year, ROSIE made 65 million recommendations. Bankers passed 38 million of those suggestions on to customers. Regions ultimately earned 7% more revenue from the customer group that used ROSIE than the control group that did not.

Regions is using ROSIE mostly in its branch network and call center, but

plans to increase usage in its online and mobile banking channels, Owen said. — Laura Alix

Digital DisconnectHow can banks engage the ‘overbanked but underserved’?Rilla Delorier says banks have become a victim of their own success at building digital channels.

Delorier, executive vice president and chief strategy officer at Umpqua Bank in Portland, Ore., argues that training customers to use digital channels has caused them to see banking as a self-serve activity — no relationship needed.

But Umpqua set out to change that. “We needed to figure out how to take our customer intimacy strategy and bring it into the digital age,” Delorier said at American Banker’s Retail Banking conference in Austin, Tex.

She noted that during the recent 35-day government shutdown, many federal workers used up their emergen-cy savings — 50% fell behind on bills, 25% had to defer their rent or mort-gage payment, and 25% stopped paying for a medical bill or prescription.

“Have we really helped people on the financial margin to weather a 35-day storm?” Delorier said. “We have an opportunity, because 78% of customers say they want financial advice from their banks, but only 28% are getting it today. Customers are overbanked and underserved.”

Digital banking has played a role in this, she said. “We have lost the art of understanding the conversation in times when customers truly need somebody to turn to.”

To help fill the gaps, Umpqua

developed a “human digital” strategy. “We came up with a mission statement: personalized banking for all, anytime, anywhere,” Delorier said.

Now, using Umpqua’s GoTo app, customers can choose a banker from a directory of profiles that includes photos, areas of expertise and hobbies (a mutual interest in cats, for example, has turned out to be important to customers). Then that banker is designated to respond whenever that customer texts a question.

“People still like people,” Delorier said. “Your hairdresser has a name, your babysitter has a name, your doctor has a name. Why shouldn’t your banker, the person who is helping you with your money, have a name?”

GoTo is meant to democratize private banking. “This is for people who don’t have somebody to turn to because their balance sheet doesn’t award them that luxury,” Delorier said.

Today 12,000 Umpqua customers use GoTo, and 400 more sign up each day. New customers who get GoTo make Umpqua their primary bank at twice the rate of customers who do not have GoTo, Delorier said.

The system is scalable. Delorier estimates that one banker can cover up to 1,000 customers. Some already cover 800. “This is not instead of self-service,” she said. “When you have a mon-ey-in-motion decision or you need help, you want a human who knows you. But that’s not that often.”

Umpqua’s human-digital strategy is forcing it to rethink performance measurements, with a focus on customer outcomes, Delorier added. “We have gone through a two-year, inside-out cultural transformation,” she said. “We needed to change our mindset, change our hiring, our incentives, how we reward, our policies, our procedures.” — Penny Crosman

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we’re excitedto follow yourLEAD. Congratulations to our very own Jacqueline Howard andto all of American Banker’s 25 Most Powerful Women in Banking honorees. Your outstanding leadership andcommitment to excellence inspires all of us in thebanking and financial services industry.

007_ABM0519 7 4/10/2019 3:29:04 PM


33 Trinity Bank (TYBT) Fort Worth, TX 257,181 72.05 65.50 12.77 14.77 1.84 3.80 4,677 547 24.22 45.57 34 Summit Bank (SBKO) Eugene, OR 416,468 83.64 16.25 12.70 15.51 1.51 5.23 5,762 1,733 27.47 53.22 35 First Commerce Bank (CMRB) Lakewood, NJ 962,299 135.21 6.00 12.58 10.25 1.31 4.04 12,934 477 12.73 46.38 36 Capital Bancorp (CBNK) Rockville, MD 1,105,058 151.90 11.11 12.54 13.94 1.22 5.59 12,767 16,147 20.10 73.07 37 Merchants Bancorp Hillsboro, OH 736,716 NA NA 12.48 14.67 1.45 4.02 10,236 3,572 10.37 55.22 38 Crystal Valley Financial (CYVF) Middlebury, IN 566,448 79.32 51.10 12.47 13.73 1.59 4.30 8,625 4,311 3.68 60.98 39 First Bancorp (FBLV) Lebanon, VA 1,810,942 182.45 44.00 12.44 13.86 1.50 3.95 26,367 13,707 7.25 54.66 40 FS Bancorp (FXLG) Lagrange, IN 760,553 144.75 66.00 12.40 13.63 1.29 3.77 9,383 5,815 22.72 65.28 41 Home Loan Financial Corp. (HLFN) Coshocton, OH 210,576 18.74 34.00 12.39 13.21 1.76 4.46 3,632 1,254 (0.08) 50.55 42 Peoples Limited (PPLL) Wyalusing, PA 371,226 42.68 67.12 12.38 15.70 1.33 3.44 4,842 3,582 3.20 59.90 43 Capital Bank of New Jersey* Vineland, NJ 513,515 NA NA 12.26 15.26 1.38 3.62 6,861 1,368 5.04 56.70 44 Heartland BancCorp (HLAN) Whitehall, OH 1,047,177 163.93 81.30 12.26 13.54 1.16 3.90 11,415 5,318 19.79 62.45 45 Silvergate Capital Corp. La Jolla, CA 1,999,812 NA NA 12.24 15.47 1.22 3.55 24,548 7,509 54.92 59.35 46 LifeStore Financial (MHC) (LSFG) West Jefferson, NC 292,159 31.00 29.50 12.19 13.77 1.24 3.74 3,573 2,951 1.63 69.90 47 Cass Information Systems (CASS) St. Louis, MO 1,695,176 695.62 47.89 12.13 13.37 1.84 3.34 30,268 104,118 11.47 73.96 48 Forsyth Bancshares Cumming, GA 303,881 NA NA 12.10 14.49 1.35 3.91 4,161 782 6.96 55.59 49 Southern First Bancshares (SFST) Greenville, SC 1,900,614 257.64 34.43 12.07 13.83 1.27 3.58 22,289 10,194 15.08 56.32 50 CBB Bancorp (CBBI) Los Angeles, CA 1,161,074 121.23 12.00 12.07 13.49 1.50 4.30 16,658 10,381 14.87 56.47 51 Lyons Bancorp (LYBC) Lyons, NY 1,081,697 126.81 40.00 11.99 13.17 0.95 3.46 9,997 11,242 10.65 67.42 52 High Country Bancorp (HCBC) Salida, CO 267,977 40.59 44.02 11.93 13.78 1.38 5.14 3,657 1,501 8.77 65.48 53 PSB Holdings (PSBQ) Wausau, WI 915,998 104.96 23.35 11.87 13.41 1.19 3.56 10,312 6,476 6.72 60.82 54 Community Bancorp. (CMTV) Derby, VT 720,347 87.45 16.90 11.87 14.09 1.24 3.98 8,398 5,951 3.80 63.99 55 1st Colonial Bancorp (FCOB) Cherry Hill, NJ 543,938 55.45 12.50 11.70 12.84 0.96 3.47 5,215 3,027 2.01 62.35 56 Susquehanna Community (SQCF) West Milton, PA 422,536 53.19 18.00 11.67 12.05 1.24 3.33 5,124 2,586 7.81 64.56 57 Sunwest Bank Irvine, CA 1,333,563 NA NA 11.63 13.78 1.58 4.35 20,049 6,133 2.11 50.71 58 Commercial National (CEFC) Ithaca, MI 527,368 45.01 11.35 11.62 13.31 0.86 2.92 4,502 1,842 (4.16) 66.65 59 Baker Boyer Bancorp (BBBK) Walla Walla, WA 600,359 91.13 70.49 11.60 13.81 1.22 3.61 7,321 12,741 5.83 73.90 60 Farmers Bancorp (FABP) Frankfort, IN 568,115 88.62 42.50 11.58 13.57 1.46 4.06 7,924 4,839 4.28 60.16 61 US Metro Bank (USMT) Garden Grove, CA 389,110 56.32 3.47 11.55 7.58 1.09 4.15 3,851 4,851 23.28 64.40 62 HomeTown Bank, N.A. Galveston, TX 593,364 NA NA 11.54 13.64 1.46 4.21 8,648 2,180 4.15 54.56 63 Macatawa Bank Corp. (MCBC) Holland, MI 1,975,124 349.96 10.28 11.45 14.69 1.40 3.36 26,379 17,503 1.47 57.74 64 1st Summit Bancorp (FSMK) Johnstown, PA 1,073,271 135.10 123.00 11.36 11.97 1.06 2.83 11,191 5,198 (0.07) 61.33 65 First Bancorp (FNLC) Damariscotta, ME 1,944,570 287.55 26.42 11.31 12.72 1.23 2.91 23,536 12,463 5.74 52.04 66 Chino Commercial Bancorp (CCBC) Chino, CA 201,988 28.41 15.28 11.30 12.15 1.16 4.10 2,231 1,563 13.25 63.18 67 FFW Corp. (FFWC) Wabash, IN 398,200 47.44 41.26 11.27 11.30 1.18 3.65 4,517 3,178 8.74 67.11 68 First Bancshares (FIBH) Bellevue, OH 222,493 21.69 38.10 11.25 13.36 1.31 4.26 2,876 1,455 (1.31) 63.38 69 State Bank Corp. (SBAZ) Lake Havasu City, AZ 655,337 107.23 13.27 11.23 14.22 1.34 3.89 8,581 5,644 5.11 60.02 70 Merchants Financial Group (MFGI) Winona, MN 1,766,499 199.87 75.00 11.23 10.41 1.28 4.20 21,650 18,412 3.28 64.75 71 CSB Bancorp (CSBB) Millersburg, OH 731,722 104.26 38.02 11.22 12.89 1.31 3.98 9,412 4,764 6.94 58.17 72 Cashmere Valley Bank (CSHX) Cashmere, WA 1,520,773 243.04 59.00 11.22 12.34 1.45 3.53 21,788 12,031 9.81 54.27 73 Valley Republic Bancorp (VLLX) Bakersfield, CA 779,854 136.42 33.00 11.19 14.54 1.25 3.34 8,952 2,324 10.87 52.28 74 Seacoast Commerce (SCBH) San Diego, CA 1,040,131 198.37 20.80 11.16 11.31 1.30 5.97 12,900 8,168 39.35 68.86 75 Northeast Bancorp (NBN) Lewiston, ME 1,194,127 173.98 21.14 11.09 13.00 1.55 5.12 17,935 7,129 6.83 57.95 76 Citizens Financial Services (CZFS) Mansfield, PA 1,430,712 208.27 59.50 11.09 13.00 1.29 3.66 18,034 7,754 8.26 55.41 77 Redwood Financial (REDW) Redwood Falls, MN 318,656 33.87 84.01 11.07 9.58 1.10 4.49 3,332 3,034 6.54 66.58 78 Benchmark Bankshares (BMBN) Kenbridge, VA 643,887 101.34 19.70 10.98 13.39 1.51 4.72 9,249 6,293 7.14 62.57 79 Steuben Trust Corp. (SBHO) Hornell, NY 551,105 64.14 38.50 10.97 12.45 1.27 3.74 6,944 4,118 5.10 60.92 80 Malaga Financial Corp. (MLGF) Palos Verdes Est., CA 1,088,000 179.30 26.00 10.95 11.65 1.44 3.17 15,305 807 3.19 34.67 81 Pinnacle Bank (PBNK) Gilroy, CA 359,927 62.67 12.00 10.90 14.39 1.49 5.01 5,352 3,264 11.85 62.29 82 MBT Financial Corp. (MBTF) Monroe, MI 1,336,891 243.94 10.61 10.88 14.47 1.33 3.63 17,699 15,812 3.69 63.38 83 F&M Bancorp (FMOO) Miamisburg, OH 159,149 17.88 56.50 10.88 13.11 1.25 4.33 1,903 785 11.65 63.71 84 Town and Country Financial (TWCF) Springfield, IL 784,354 56.29 19.70 10.87 11.37 0.84 3.45 6,431 10,860 5.00 74.76 85 Virginia National (VABK) Charlottesville, VA 644,800 99.93 39.05 10.87 12.39 1.33 3.80 8,470 5,530 0.83 55.77 86 S.B.C.P. Bancorp (SBBI) Cross Plains, WI 986,995 83.81 87.00 10.87 11.28 1.25 3.54 11,949 10,985 3.25 59.94 87 Choice Bancorp (CBKW) Oshkosh, WI 421,138 49.46 21.40 10.86 13.79 1.09 3.01 4,474 1,129 13.58 51.85 88 OP Bancorp (OPBK) Los Angeles, CA 1,044,186 146.65 9.35 10.86 12.27 1.49 4.49 14,253 9,329 12.59 58.79 89 KS Bancorp (KSBI) Smithfield, NC 400,415 29.91 27.00 10.82 15.75 0.92 3.37 3,542 3,172 2.54 71.61 90 First Ottawa Bancshares (FOTB) Ottawa, IL 290,429 71.79 117.76 10.80 10.61 1.20 4.41 3,509 3,077 6.86 62.25

1 Oregon Bancorp (ORBN) Salem, OR 241,577 46.03 19.95 25.18 29.33 3.37 4.15 7,553 34,475 14.62 76.84 2 MetroCity Bankshares (MCBS) Doraville, GA 1,435,822 333.32 27.50 24.90 27.80 3.01 4.47 41,377 37,462 23.31 40.08 3 Thomasville Bancshares (THVB) Thomasville, GA 879,101 232.37 39.00 18.89 21.34 2.00 3.78 16,911 12,820 3.32 46.92 4 Plumas Bancorp (PLBC) Quincy, CA 824,398 124.91 24.25 18.25 23.29 1.83 4.70 13,992 8,680 8.60 51.79 5 First Home Bancorp St. Petersburg, FL 364,059 NA NA 17.23 (2.12) (0.26) 5.82 (830) 29,538 109.77 99.71 6 FS Bancorp (FSBW) Mountlake Terrace, WA 1,621,644 221.84 50.72 15.57 18.15 2.07 4.61 24,347 19,336 7.86 65.93 7 Greene County Bancorp (GCBC) Catskill, NY 1,195,286 264.67 31.00 15.20 16.90 1.42 3.56 16,260 8,047 18.10 50.58 8 FFD Financial Corp. (FFDF) Dover, OH 394,084 52.27 52.50 15.09 16.31 1.48 3.91 5,500 1,727 12.69 53.04 9 First General Bank Rowland Heights, CA 947,186 NA NA 15.02 18.67 2.31 4.47 21,105 1,814 14.80 29.19 10 Mission Bancorp (MSBC) Bakersfield, CA 688,830 147.94 82.50 14.98 21.40 1.91 4.50 12,763 6,458 13.66 47.59 11 Country Bank Holding Co. (CYHC) New York, NY 727,672 55.20 28500.00 14.88 14.82 1.48 4.19 10,362 514 5.01 52.43 12 Santa Cruz County Bank (SCZC) Santa Cruz, CA 662,408 122.61 50.00 14.74 18.15 1.75 4.66 11,380 3,222 10.48 49.06 13 Unity Bancorp (UNTY) Clinton, NJ 1,579,157 217.16 20.11 14.63 17.10 1.53 3.97 21,919 8,939 10.02 52.44 14 First Farmers Financial (FFMR) Converse, IN 1,749,101 305.26 42.50 14.35 15.38 1.63 4.15 27,664 15,580 11.15 52.96 15 First IC Corp. (FIEB) Doraville, GA 500,737 53.61 8.15 14.04 14.31 2.16 4.59 9,636 10,204 14.94 52.55 16 United Bancorp. of Ala. (UBAB) Atmore, AL 639,609 49.52 20.30 13.90 24.08 1.60 3.82 10,052 6,686 7.38 66.55 17 Parke Bancorp (PKBK) Sewell, NJ 1,467,398 228.77 21.28 13.88 17.20 1.98 3.92 25,038 4,107 1.62 30.05 18 Union Bankshares (UNB) Morrisville, VT 805,337 207.79 46.51 13.86 11.80 0.94 4.05 7,072 9,020 5.84 65.99 19 First Commerce Bancorp Lewisburg, TN 411,624 NA NA 13.84 15.67 1.38 4.02 5,285 1,328 9.04 52.85 20 Fentura Financial (FETM) Fenton, MI 926,450 95.05 20.45 13.57 15.05 1.20 3.85 10,114 8,277 9.28 65.23 21 Truxton Corp. (TRUX) Nashville, TN 485,133 110.19 40.00 13.48 15.53 1.76 3.30 8,194 10,627 5.04 58.48 22 Bridgewater Bancshares (BWB) Bloomington, MN 1,973,741 333.18 11.07 13.31 13.87 1.51 3.72 26,920 2,893 26.44 45.70 23 First National Corp. (FXNC) Strasburg, VA 752,969 99.24 20.00 13.31 16.36 1.34 3.93 10,135 8,563 3.16 64.08 24 Bank of South Carolina (BKSC) Charleston, SC 429,135 103.64 18.79 13.29 15.85 1.61 4.15 6,923 1,990 8.18 56.72 25 Marlin Business Services (MRLN) Mount Laurel, NJ 1,167,046 278.30 22.92 13.27 13.27 2.29 7.60 24,980 37,352 6.59 54.42 26 Timberland Bancorp (TSBK) Hoquiam, WA 1,200,315 239.85 28.90 13.24 14.66 1.80 4.31 18,722 12,616 7.59 54.62 27 Minster Financial Corp. (MTFC) Minster, OH 490,197 59.62 57.00 13.12 15.41 1.30 3.32 6,213 3,694 8.36 58.77 28 CNB Community Bancorp (CNBB) Hillsdale, MI 662,067 74.37 35.00 13.09 15.78 1.31 4.24 8,473 6,230 4.42 66.94 29 Pacific City Financial Corp. (PCB) Los Angeles, CA 1,697,028 277.85 17.39 12.91 14.26 1.53 4.23 24,301 10,451 11.99 52.79 30 Bank First National Corp. (BFC) Manitowoc, WI 1,793,165 377.83 57.54 12.88 15.36 1.43 3.80 25,456 8,968 43.30 53.57 31 Communities First Financial (CFST) Fresno, CA 467,208 70.61 24.20 12.86 16.68 1.46 4.45 6,249 1,736 18.48 54.39 32 Citizens Bank Carthage, TN 587,500 NA NA 12.85 12.99 2.25 4.12 13,137 2,348 1.72 29.71

Metrics & MeasuresPEER ANALYSIS

Community banks need to reinvent themselves. That’s the takeaway Kevin Halsey had after compiling data for our annual ranking of publicly traded banks and thrifts with less than $2 billion of assets.

Lower taxes and higher interest rates significantly im-proved profitability for this group last year. The median return on average equity for the 601 institutions that fit the ranking criteria jumped 270 basis points in 2018, to 9.66%. The increase for the top 200 is even greater (an extra 10 basis points), rais-ing their median ROAE to a very impressive 12.45%.

But Halsey, a consultant at Capital Performance Group, points out that those gains had little to do with improvements to bank operations. Particularly troubling trends include a de-cline in core deposit growth — to 4.2% last year, from 7.1%

the previous year — and rising noninterest expenses.Halsey said the expense growth of 6.37% could be inter-

preted two ways. Perhaps business demands like the need to keep up with technology are imposing an increasingly heavy toll. Or perhaps the tax savings is prompting small banks to invest. “It’s probably a little of both,” Halsey said.

But even the most optimistic spin gives him pause — be-cause the apparent investments have not boosted revenue. “They haven’t funded some engine that’s taken off yet,” he said.

That is what needs to happen for small banks to compete effectively, though. “There is a mandate to change the way in which they do business,” said Halsey, who argues that focus-ing on, and excelling in, particular niches like small-business banking can help. “You can’t boil the ocean.” — Bonnie McGeer

Warning Signs Amid the Big Gains

3-YR Net Total Noninterest Total Market Closing ROAE Interest Net Noninterest Expense Efficiency Assets Value Price Avg. ROAE ROAA Margin Income Income Growth RatioRank Institution/Ticker Location ($000) ($Millions) ($) (%) (%) (%) FTE (%) ($000) ($000) (%) FTE (%)


008_ABM0519 8 4/9/2019 4:36:08 PM


33 Trinity Bank (TYBT) Fort Worth, TX 257,181 72.05 65.50 12.77 14.77 1.84 3.80 4,677 547 24.22 45.57 34 Summit Bank (SBKO) Eugene, OR 416,468 83.64 16.25 12.70 15.51 1.51 5.23 5,762 1,733 27.47 53.22 35 First Commerce Bank (CMRB) Lakewood, NJ 962,299 135.21 6.00 12.58 10.25 1.31 4.04 12,934 477 12.73 46.38 36 Capital Bancorp (CBNK) Rockville, MD 1,105,058 151.90 11.11 12.54 13.94 1.22 5.59 12,767 16,147 20.10 73.07 37 Merchants Bancorp Hillsboro, OH 736,716 NA NA 12.48 14.67 1.45 4.02 10,236 3,572 10.37 55.22 38 Crystal Valley Financial (CYVF) Middlebury, IN 566,448 79.32 51.10 12.47 13.73 1.59 4.30 8,625 4,311 3.68 60.98 39 First Bancorp (FBLV) Lebanon, VA 1,810,942 182.45 44.00 12.44 13.86 1.50 3.95 26,367 13,707 7.25 54.66 40 FS Bancorp (FXLG) Lagrange, IN 760,553 144.75 66.00 12.40 13.63 1.29 3.77 9,383 5,815 22.72 65.28 41 Home Loan Financial Corp. (HLFN) Coshocton, OH 210,576 18.74 34.00 12.39 13.21 1.76 4.46 3,632 1,254 (0.08) 50.55 42 Peoples Limited (PPLL) Wyalusing, PA 371,226 42.68 67.12 12.38 15.70 1.33 3.44 4,842 3,582 3.20 59.90 43 Capital Bank of New Jersey* Vineland, NJ 513,515 NA NA 12.26 15.26 1.38 3.62 6,861 1,368 5.04 56.70 44 Heartland BancCorp (HLAN) Whitehall, OH 1,047,177 163.93 81.30 12.26 13.54 1.16 3.90 11,415 5,318 19.79 62.45 45 Silvergate Capital Corp. La Jolla, CA 1,999,812 NA NA 12.24 15.47 1.22 3.55 24,548 7,509 54.92 59.35 46 LifeStore Financial (MHC) (LSFG) West Jefferson, NC 292,159 31.00 29.50 12.19 13.77 1.24 3.74 3,573 2,951 1.63 69.90 47 Cass Information Systems (CASS) St. Louis, MO 1,695,176 695.62 47.89 12.13 13.37 1.84 3.34 30,268 104,118 11.47 73.96 48 Forsyth Bancshares Cumming, GA 303,881 NA NA 12.10 14.49 1.35 3.91 4,161 782 6.96 55.59 49 Southern First Bancshares (SFST) Greenville, SC 1,900,614 257.64 34.43 12.07 13.83 1.27 3.58 22,289 10,194 15.08 56.32 50 CBB Bancorp (CBBI) Los Angeles, CA 1,161,074 121.23 12.00 12.07 13.49 1.50 4.30 16,658 10,381 14.87 56.47 51 Lyons Bancorp (LYBC) Lyons, NY 1,081,697 126.81 40.00 11.99 13.17 0.95 3.46 9,997 11,242 10.65 67.42 52 High Country Bancorp (HCBC) Salida, CO 267,977 40.59 44.02 11.93 13.78 1.38 5.14 3,657 1,501 8.77 65.48 53 PSB Holdings (PSBQ) Wausau, WI 915,998 104.96 23.35 11.87 13.41 1.19 3.56 10,312 6,476 6.72 60.82 54 Community Bancorp. (CMTV) Derby, VT 720,347 87.45 16.90 11.87 14.09 1.24 3.98 8,398 5,951 3.80 63.99 55 1st Colonial Bancorp (FCOB) Cherry Hill, NJ 543,938 55.45 12.50 11.70 12.84 0.96 3.47 5,215 3,027 2.01 62.35 56 Susquehanna Community (SQCF) West Milton, PA 422,536 53.19 18.00 11.67 12.05 1.24 3.33 5,124 2,586 7.81 64.56 57 Sunwest Bank Irvine, CA 1,333,563 NA NA 11.63 13.78 1.58 4.35 20,049 6,133 2.11 50.71 58 Commercial National (CEFC) Ithaca, MI 527,368 45.01 11.35 11.62 13.31 0.86 2.92 4,502 1,842 (4.16) 66.65 59 Baker Boyer Bancorp (BBBK) Walla Walla, WA 600,359 91.13 70.49 11.60 13.81 1.22 3.61 7,321 12,741 5.83 73.90 60 Farmers Bancorp (FABP) Frankfort, IN 568,115 88.62 42.50 11.58 13.57 1.46 4.06 7,924 4,839 4.28 60.16 61 US Metro Bank (USMT) Garden Grove, CA 389,110 56.32 3.47 11.55 7.58 1.09 4.15 3,851 4,851 23.28 64.40 62 HomeTown Bank, N.A. Galveston, TX 593,364 NA NA 11.54 13.64 1.46 4.21 8,648 2,180 4.15 54.56 63 Macatawa Bank Corp. (MCBC) Holland, MI 1,975,124 349.96 10.28 11.45 14.69 1.40 3.36 26,379 17,503 1.47 57.74 64 1st Summit Bancorp (FSMK) Johnstown, PA 1,073,271 135.10 123.00 11.36 11.97 1.06 2.83 11,191 5,198 (0.07) 61.33 65 First Bancorp (FNLC) Damariscotta, ME 1,944,570 287.55 26.42 11.31 12.72 1.23 2.91 23,536 12,463 5.74 52.04 66 Chino Commercial Bancorp (CCBC) Chino, CA 201,988 28.41 15.28 11.30 12.15 1.16 4.10 2,231 1,563 13.25 63.18 67 FFW Corp. (FFWC) Wabash, IN 398,200 47.44 41.26 11.27 11.30 1.18 3.65 4,517 3,178 8.74 67.11 68 First Bancshares (FIBH) Bellevue, OH 222,493 21.69 38.10 11.25 13.36 1.31 4.26 2,876 1,455 (1.31) 63.38 69 State Bank Corp. (SBAZ) Lake Havasu City, AZ 655,337 107.23 13.27 11.23 14.22 1.34 3.89 8,581 5,644 5.11 60.02 70 Merchants Financial Group (MFGI) Winona, MN 1,766,499 199.87 75.00 11.23 10.41 1.28 4.20 21,650 18,412 3.28 64.75 71 CSB Bancorp (CSBB) Millersburg, OH 731,722 104.26 38.02 11.22 12.89 1.31 3.98 9,412 4,764 6.94 58.17 72 Cashmere Valley Bank (CSHX) Cashmere, WA 1,520,773 243.04 59.00 11.22 12.34 1.45 3.53 21,788 12,031 9.81 54.27 73 Valley Republic Bancorp (VLLX) Bakersfield, CA 779,854 136.42 33.00 11.19 14.54 1.25 3.34 8,952 2,324 10.87 52.28 74 Seacoast Commerce (SCBH) San Diego, CA 1,040,131 198.37 20.80 11.16 11.31 1.30 5.97 12,900 8,168 39.35 68.86 75 Northeast Bancorp (NBN) Lewiston, ME 1,194,127 173.98 21.14 11.09 13.00 1.55 5.12 17,935 7,129 6.83 57.95 76 Citizens Financial Services (CZFS) Mansfield, PA 1,430,712 208.27 59.50 11.09 13.00 1.29 3.66 18,034 7,754 8.26 55.41 77 Redwood Financial (REDW) Redwood Falls, MN 318,656 33.87 84.01 11.07 9.58 1.10 4.49 3,332 3,034 6.54 66.58 78 Benchmark Bankshares (BMBN) Kenbridge, VA 643,887 101.34 19.70 10.98 13.39 1.51 4.72 9,249 6,293 7.14 62.57 79 Steuben Trust Corp. (SBHO) Hornell, NY 551,105 64.14 38.50 10.97 12.45 1.27 3.74 6,944 4,118 5.10 60.92 80 Malaga Financial Corp. (MLGF) Palos Verdes Est., CA 1,088,000 179.30 26.00 10.95 11.65 1.44 3.17 15,305 807 3.19 34.67 81 Pinnacle Bank (PBNK) Gilroy, CA 359,927 62.67 12.00 10.90 14.39 1.49 5.01 5,352 3,264 11.85 62.29 82 MBT Financial Corp. (MBTF) Monroe, MI 1,336,891 243.94 10.61 10.88 14.47 1.33 3.63 17,699 15,812 3.69 63.38 83 F&M Bancorp (FMOO) Miamisburg, OH 159,149 17.88 56.50 10.88 13.11 1.25 4.33 1,903 785 11.65 63.71 84 Town and Country Financial (TWCF) Springfield, IL 784,354 56.29 19.70 10.87 11.37 0.84 3.45 6,431 10,860 5.00 74.76 85 Virginia National (VABK) Charlottesville, VA 644,800 99.93 39.05 10.87 12.39 1.33 3.80 8,470 5,530 0.83 55.77 86 S.B.C.P. Bancorp (SBBI) Cross Plains, WI 986,995 83.81 87.00 10.87 11.28 1.25 3.54 11,949 10,985 3.25 59.94 87 Choice Bancorp (CBKW) Oshkosh, WI 421,138 49.46 21.40 10.86 13.79 1.09 3.01 4,474 1,129 13.58 51.85 88 OP Bancorp (OPBK) Los Angeles, CA 1,044,186 146.65 9.35 10.86 12.27 1.49 4.49 14,253 9,329 12.59 58.79 89 KS Bancorp (KSBI) Smithfield, NC 400,415 29.91 27.00 10.82 15.75 0.92 3.37 3,542 3,172 2.54 71.61 90 First Ottawa Bancshares (FOTB) Ottawa, IL 290,429 71.79 117.76 10.80 10.61 1.20 4.41 3,509 3,077 6.86 62.25

1 Oregon Bancorp (ORBN) Salem, OR 241,577 46.03 19.95 25.18 29.33 3.37 4.15 7,553 34,475 14.62 76.84 2 MetroCity Bankshares (MCBS) Doraville, GA 1,435,822 333.32 27.50 24.90 27.80 3.01 4.47 41,377 37,462 23.31 40.08 3 Thomasville Bancshares (THVB) Thomasville, GA 879,101 232.37 39.00 18.89 21.34 2.00 3.78 16,911 12,820 3.32 46.92 4 Plumas Bancorp (PLBC) Quincy, CA 824,398 124.91 24.25 18.25 23.29 1.83 4.70 13,992 8,680 8.60 51.79 5 First Home Bancorp St. Petersburg, FL 364,059 NA NA 17.23 (2.12) (0.26) 5.82 (830) 29,538 109.77 99.71 6 FS Bancorp (FSBW) Mountlake Terrace, WA 1,621,644 221.84 50.72 15.57 18.15 2.07 4.61 24,347 19,336 7.86 65.93 7 Greene County Bancorp (GCBC) Catskill, NY 1,195,286 264.67 31.00 15.20 16.90 1.42 3.56 16,260 8,047 18.10 50.58 8 FFD Financial Corp. (FFDF) Dover, OH 394,084 52.27 52.50 15.09 16.31 1.48 3.91 5,500 1,727 12.69 53.04 9 First General Bank Rowland Heights, CA 947,186 NA NA 15.02 18.67 2.31 4.47 21,105 1,814 14.80 29.19 10 Mission Bancorp (MSBC) Bakersfield, CA 688,830 147.94 82.50 14.98 21.40 1.91 4.50 12,763 6,458 13.66 47.59 11 Country Bank Holding Co. (CYHC) New York, NY 727,672 55.20 28500.00 14.88 14.82 1.48 4.19 10,362 514 5.01 52.43 12 Santa Cruz County Bank (SCZC) Santa Cruz, CA 662,408 122.61 50.00 14.74 18.15 1.75 4.66 11,380 3,222 10.48 49.06 13 Unity Bancorp (UNTY) Clinton, NJ 1,579,157 217.16 20.11 14.63 17.10 1.53 3.97 21,919 8,939 10.02 52.44 14 First Farmers Financial (FFMR) Converse, IN 1,749,101 305.26 42.50 14.35 15.38 1.63 4.15 27,664 15,580 11.15 52.96 15 First IC Corp. (FIEB) Doraville, GA 500,737 53.61 8.15 14.04 14.31 2.16 4.59 9,636 10,204 14.94 52.55 16 United Bancorp. of Ala. (UBAB) Atmore, AL 639,609 49.52 20.30 13.90 24.08 1.60 3.82 10,052 6,686 7.38 66.55 17 Parke Bancorp (PKBK) Sewell, NJ 1,467,398 228.77 21.28 13.88 17.20 1.98 3.92 25,038 4,107 1.62 30.05 18 Union Bankshares (UNB) Morrisville, VT 805,337 207.79 46.51 13.86 11.80 0.94 4.05 7,072 9,020 5.84 65.99 19 First Commerce Bancorp Lewisburg, TN 411,624 NA NA 13.84 15.67 1.38 4.02 5,285 1,328 9.04 52.85 20 Fentura Financial (FETM) Fenton, MI 926,450 95.05 20.45 13.57 15.05 1.20 3.85 10,114 8,277 9.28 65.23 21 Truxton Corp. (TRUX) Nashville, TN 485,133 110.19 40.00 13.48 15.53 1.76 3.30 8,194 10,627 5.04 58.48 22 Bridgewater Bancshares (BWB) Bloomington, MN 1,973,741 333.18 11.07 13.31 13.87 1.51 3.72 26,920 2,893 26.44 45.70 23 First National Corp. (FXNC) Strasburg, VA 752,969 99.24 20.00 13.31 16.36 1.34 3.93 10,135 8,563 3.16 64.08 24 Bank of South Carolina (BKSC) Charleston, SC 429,135 103.64 18.79 13.29 15.85 1.61 4.15 6,923 1,990 8.18 56.72 25 Marlin Business Services (MRLN) Mount Laurel, NJ 1,167,046 278.30 22.92 13.27 13.27 2.29 7.60 24,980 37,352 6.59 54.42 26 Timberland Bancorp (TSBK) Hoquiam, WA 1,200,315 239.85 28.90 13.24 14.66 1.80 4.31 18,722 12,616 7.59 54.62 27 Minster Financial Corp. (MTFC) Minster, OH 490,197 59.62 57.00 13.12 15.41 1.30 3.32 6,213 3,694 8.36 58.77 28 CNB Community Bancorp (CNBB) Hillsdale, MI 662,067 74.37 35.00 13.09 15.78 1.31 4.24 8,473 6,230 4.42 66.94 29 Pacific City Financial Corp. (PCB) Los Angeles, CA 1,697,028 277.85 17.39 12.91 14.26 1.53 4.23 24,301 10,451 11.99 52.79 30 Bank First National Corp. (BFC) Manitowoc, WI 1,793,165 377.83 57.54 12.88 15.36 1.43 3.80 25,456 8,968 43.30 53.57 31 Communities First Financial (CFST) Fresno, CA 467,208 70.61 24.20 12.86 16.68 1.46 4.45 6,249 1,736 18.48 54.39 32 Citizens Bank Carthage, TN 587,500 NA NA 12.85 12.99 2.25 4.12 13,137 2,348 1.72 29.71

PEER ANALYSIS

the previous year — and rising noninterest expenses.Halsey said the expense growth of 6.37% could be inter-

preted two ways. Perhaps business demands like the need to keep up with technology are imposing an increasingly heavy toll. Or perhaps the tax savings is prompting small banks to invest. “It’s probably a little of both,” Halsey said.

But even the most optimistic spin gives him pause — be-cause the apparent investments have not boosted revenue. “They haven’t funded some engine that’s taken off yet,” he said.

That is what needs to happen for small banks to compete effectively, though. “There is a mandate to change the way in which they do business,” said Halsey, who argues that focus-ing on, and excelling in, particular niches like small-business banking can help. “You can’t boil the ocean.” — Bonnie McGeer

Warning Signs Amid the Big Gains

TOP 200 COMMUNITY BANKS



009_ABM0519 9 4/9/2019 4:36:09 PM


91 Liberty Bancorp (LBCP) Kansas City, MO 540,485 119.25 24.25 10.80 14.29 1.64 4.70 8,657 3,812 6.28 55.22 92 Cornerstone Community (CRSB) Red Bluff, CA 266,361 26.53 17.50 10.80 13.72 1.13 4.18 2,776 695 14.42 62.38 93 Kentucky Bancshares (KTYB) Paris, KY 1,086,012 146.54 24.50 10.80 12.36 1.18 3.70 12,430 13,037 3.43 68.78 94 SB Financial Group (SBFG) Defiance, OH 986,828 120.38 18.59 10.79 9.61 1.23 3.95 11,638 16,554 9.72 69.30 95 Fidelity D & D Bancorp (FDBC) Dunmore, PA 981,102 225.38 59.95 10.78 12.36 1.20 3.64 11,006 9,190 4.97 61.67 96 Mountain Commerce (MCBI) Knoxville, TN 849,145 118.37 19.12 10.74 14.41 1.28 3.53 10,183 1,945 4.32 48.52 97 BEO Bancorp (BEOB) Heppner, OR 416,600 34.33 29.00 10.71 10.36 0.98 5.34 3,949 2,738 5.29 68.59 98 Oak Valley Bancorp (OVLY) Oakdale, CA 1,094,887 147.04 18.18 10.70 12.26 1.08 3.89 11,537 4,438 11.62 62.40 99 Killbuck Bancshares (KLIB) Killbuck, OH 521,897 108.99 185.00 10.69 12.73 1.40 3.67 7,383 2,399 8.20 55.56 100 Level One Bancorp (LEVL) Farmington Hills, MI 1,416,215 188.41 24.31 10.69 10.68 1.07 3.92 14,386 7,126 10.06 68.19 101 First Community Bancorp Shelbyville, TN 474,754 NA NA 10.68 4.68 0.56 3.36 2,813 43,454 (0.36) 93.51 102 SVB&T Corp. (SVBT) Jasper, IN 400,954 44.67 79.90 10.68 10.74 1.05 3.51 4,149 5,189 4.46 68.81 103 Huron Valley Bancorp (HVLM) Milford, MI 150,846 12.11 14.10 10.67 12.03 1.21 4.28 1,754 447 6.73 62.08 104 Community Financial (CFGW) Spokane, WA 434,324 45.39 28.35 10.63 13.06 1.27 4.72 5,235 5,225 14.24 69.84 105 American Bank Inc. (AMBK) Allentown, PA 621,969 65.84 11.60 10.61 11.70 1.17 3.10 7,270 1,194 7.33 50.16 106 Centric Financial Corp. (CFCX) Harrisburg, PA 704,396 93.57 10.71 10.59 13.85 1.21 3.95 8,004 4,434 20.59 61.35 107 Chesapeake Financial (CPKF) Kilmarnock, VA 854,766 110.63 27.00 10.59 12.27 1.34 4.35 10,820 18,474 4.88 72.59 108 Northeast Ind. Bancorp (NIDB) Huntington, IN 334,211 43.31 35.90 10.57 11.46 1.28 3.60 4,167 3,259 10.01 63.45 109 Mifflinburg Bancorp (MIFF) Mifflinburg, PA 438,368 44.28 23.65 10.55 12.45 1.14 3.24 4,975 2,141 6.91 56.76 110 Oak Ridge Financial (BKOR) Oak Ridge, NC 453,341 38.16 14.72 10.50 12.33 0.91 3.73 3,980 3,056 6.43 74.38 111 Woodlands Financial (WDFN) Williamsport, PA 414,311 44.71 29.00 10.48 13.82 1.35 3.67 5,460 3,465 4.31 67.47 112 Avidbank Holdings (AVBH) San Jose, CA 917,144 143.24 24.00 10.48 11.83 1.28 4.58 11,120 2,414 18.59 58.41 113 Henderson Bancshares Troy, AL 875,923 NA NA 10.48 12.70 1.42 3.74 12,752 7,763 4.18 56.97 114 Embassy Bancorp (EMYB) Bethlehem, PA 1,099,387 112.50 15.05 10.47 12.10 0.96 3.19 10,079 1,733 4.85 60.51 115 Lighthouse Bank (LGHT) Santa Cruz, CA 303,939 62.09 23.86 10.45 13.47 1.75 5.40 4,937 310 14.26 49.00 116 F & M Bank Corp. (FMBM) Timberville, VA 780,253 104.54 32.56 10.45 9.90 1.19 4.65 9,095 6,709 8.19 69.08 117 Somerset Trust Holding Co. (SOME) Somerset, PA 1,230,098 103.42 42.41 10.43 12.45 0.91 4.39 10,829 12,721 12.72 75.08 118 Evans Bancorp (EVBN) Hamburg, NY 1,388,207 172.45 35.80 10.35 13.20 1.20 3.73 16,356 15,081 12.18 68.07 119 Southwest Georgia Financial (SGB) Moultrie, GA 534,701 49.39 19.40 10.34 11.09 0.92 3.99 4,682 4,361 4.59 72.16 120 Community First Bank of Ind. Kokomo, IN 286,626 NA NA 10.33 11.73 1.23 4.48 3,195 1,811 1.44 63.52 121 Peoples Bancorp (PPBB) Bellingham, WA 1,731,729 302.41 237.50 10.30 12.46 1.40 4.25 23,670 19,324 2.51 65.78 122 Blackhawk Bancorp (BHWB) Beloit, WI 817,287 93.67 28.50 10.29 10.19 1.06 3.83 8,142 11,496 17.00 71.02 123 Colony Bankcorp (CBAN) Fitzgerald, GA 1,251,878 149.22 17.67 10.16 13.32 0.99 3.56 11,917 9,505 3.59 69.51 124 Farmers Bankshares (FBVA) Windsor, VA 478,245 56.89 18.50 10.15 10.16 1.04 3.70 4,875 6,100 13.67 70.18 125 NorthWest Indiana Bancorp (NWIN) Munster, IN 1,096,158 147.24 42.65 10.14 9.88 0.93 3.67 9,337 7,845 15.24 68.81 126 Farmers and Merchants (FMFG) Hampstead, MD 417,158 51.08 30.35 10.10 10.79 1.14 3.84 4,713 1,432 2.12 62.23 127 First Pulaski National Corp. Pulaski, TN 851,418 NA NA 10.09 12.18 1.22 3.84 10,127 5,255 6.33 60.23 128 First Citizens Bancshares (FIZN) Dyersburg, TN 1,703,271 237.69 62.00 10.07 10.23 1.13 3.74 18,823 15,383 5.61 65.27 129 River Valley Community (RVCB) Yuba City, CA 376,986 46.50 19.50 10.05 12.64 1.02 3.20 3,656 563 26.25 55.00 130 West Town Bancorp (WTWB) Raleigh, NC 555,324 60.33 23.00 10.04 16.41 2.24 4.41 12,136 15,097 61.29 77.99 131 Community National Corp. Lexington, TN 156,259 NA NA 10.02 9.14 0.86 4.19 1,288 655 11.10 72.15 132 Farmers & Merchants (FMAO) Archbold, OH 1,116,163 319.77 28.79 10.00 10.86 1.34 3.80 14,949 10,873 9.56 61.64 133 ACNB Corp. (ACNB) Gettysburg, PA 1,647,724 255.70 36.29 9.97 13.62 1.34 3.81 21,748 16,107 14.09 59.87 134 Cortland Bancorp (CLDB) Cortland, OH 714,666 102.22 23.50 9.96 14.36 1.31 3.76 8,835 4,165 (1.89) 64.83 135 First Capital (FCAP) Corydon, IN 794,162 171.59 51.00 9.93 11.47 1.19 3.79 9,266 6,646 6.70 61.13 136 First Guaranty Bancshares (FGBI) Hammond, LA 1,817,211 186.23 21.15 9.92 9.98 0.82 3.41 14,213 7,110 16.66 66.34 137 First Northern Community (FNRN) Dixon, CA 1,249,845 134.08 11.45 9.91 12.00 1.03 3.79 12,551 7,229 9.40 62.31 138 United Security Bancshares (UBFO) Fresno, CA 933,058 180.48 10.65 9.91 13.23 1.61 4.27 14,017 4,483 5.70 54.14 139 BancAffiliated (BAFI) Arlington, TX 751,688 49.73 127.00 9.90 4.17 0.48 2.55 3,413 4,257 (41.87) 70.91 140 Century Next Financial (CTUY) Ruston, LA 462,247 53.17 33.00 9.88 10.85 1.08 4.23 3,429 1,987 32.78 66.52 141 U & I Financial Corp. (UNIF) Lynnwood, WA 304,885 51.35 9.21 9.85 11.01 1.61 4.30 4,507 2,423 12.29 57.02 142 First Bankers Trustshares (FBTT) Quincy, IL 930,044 108.83 35.25 9.84 9.68 0.89 3.04 8,382 17,515 (8.19) 60.68 143 CalWest Bancorp (CALW) Santa Margarita, CA 195,253 28.73 0.39 9.83 10.32 0.88 3.71 1,623 908 22.23 81.15 144 Citizens First Corp. (CZFC) Bowling Green, KY 475,982 64.33 25.35 9.83 10.12 1.01 3.52 4,819 3,608 3.33 67.74 145 First National of Groton (FIGR) Groton, NY 182,939 33.00 550.00 9.82 11.61 1.51 4.38 2,744 819 (0.10) 54.93 146 Croghan Bancshares (CHBH) Fremont, OH 847,552 115.47 50.75 9.80 10.79 1.45 4.22 12,002 6,220 (0.11) 60.02 147 Security Capital Corp. Batesville, MS 546,716 NA NA 9.80 11.66 1.32 4.38 7,422 8,036 5.48 64.42

148 Heartland Bancshares Sebring, FL 380,287 NA NA 9.74 13.90 1.23 3.21 4,683 1,527 1.13 52.97 149 Solvay Bank Corp. (SOBS) Solvay, NY 908,130 94.68 43.00 9.73 10.97 0.96 2.95 8,539 5,261 3.29 61.75 150 Presidio Bank (PDOB) San Francisco, CA 862,464 166.94 26.75 9.73 14.50 1.42 4.34 11,829 1,221 10.79 55.89 151 Oconomowoc Bancshares (OCNB) Oconomowoc, WI 1,177,084 95.51 285.00 9.71 9.65 0.71 3.48 8,218 15,645 1.85 81.18 152 Jonestown Bank and Trust (JNES) Jonestown, PA 588,729 53.56 22.20 9.70 9.57 0.84 3.55 4,845 3,404 15.22 71.42 153 Pacific Financial Corp. (PFLC) Aberdeen, WA 907,929 119.98 11.34 9.66 12.63 1.25 4.46 11,330 10,031 2.48 71.07 154 Auburn National Bancorp. (AUBN) Auburn, AL 818,077 125.77 35.00 9.66 10.14 1.08 3.40 8,834 3,325 6.49 60.57 155 Dart Financial Corp. (DRTF) Mason, MI 454,157 NA NA 9.65 10.39 0.91 4.17 3,860 10,066 5.34 81.80 156 FCN Banc Corp. (FBVI) Brookville, IN 443,563 52.22 34.75 9.65 11.30 1.19 3.64 5,283 2,310 1.38 61.10 157 Community Bank of Pickens County Jasper, GA 354,215 NA NA 9.63 13.16 1.38 4.34 4,790 2,692 (1.05) 62.77 158 Allegheny Bancshares Franklin, WV 307,536 NA NA 9.63 10.35 1.29 4.51 3,884 2,346 9.29 63.44 159 New Tripoli Bancorp (NTBP) New Tripoli, PA 480,323 61.85 972.00 9.62 9.73 1.10 3.18 5,045 821 0.72 58.00 160 FvCBankcorp (AQFH) Cornelius, NC 460,113 46.33 11.47 9.59 13.46 0.98 3.58 4,248 4,129 11.16 74.79 161 Ledyard Financial Group (LFGP) Hanover, NH 487,261 64.78 20.10 9.59 11.00 1.07 3.37 5,152 12,093 7.51 78.51 162 Bank of Princeton (BPRN) Princeton, NJ 1,251,564 214.29 32.22 9.57 8.37 1.20 3.52 14,708 2,661 8.42 56.69 163 CBC Holding Co. (CBHC) Fitzgerald, GA 158,202 8.20 13.50 9.57 11.56 1.46 4.40 2,200 1,147 5.71 58.13 164 River Financial Corp. (RVRF) Prattville, AL 1,070,362 170.70 30.00 9.57 9.46 1.07 4.10 9,332 6,634 19.80 62.31 165 Benton Financial Corp. (BTOF) Fowler, IN 167,052 20.56 30.00 9.54 10.19 1.42 4.16 2,304 768 7.25 65.82 166 Andover Bancorp (ANDC) Andover, OH 395,770 56.24 23.00 9.50 10.15 0.96 3.21 3,864 3,120 (2.95) 72.35 167 First Farmers and Merchants (FFMH) Columbia, TN 1,365,117 198.62 44.62 9.49 11.44 1.04 3.23 14,213 13,482 6.36 70.08 168 Ballston Spa Bancorp (BSPA) Ballston Spa, NY 534,455 43.82 59.00 9.48 10.91 0.89 3.86 4,554 3,650 6.37 70.76 169 County Bank Corp (CBNC) Lapeer, MI 616,564 79.57 45.55 9.45 12.00 1.13 3.76 6,960 5,613 0.25 66.41 170 Virginia Community (VCBS) Louisa, VA 247,470 27.38 36.50 9.44 9.54 0.97 4.50 2,414 1,391 12.90 78.91 171 Cornerstone Bancorp Palatine, IL 568,354 NA NA 9.43 12.69 1.26 3.78 7,009 4,366 8.97 62.13 172 York Traditions Bank (YRKB) York, PA 482,918 56.01 19.85 9.42 10.01 1.03 3.54 4,728 5,462 6.58 70.23 173 Coastal Financial Corp. (CCB) Everett, WA 952,110 191.36 16.09 9.41 11.40 1.14 4.24 9,701 5,467 16.86 65.08 174 Shore Bancshares (SHBI) Easton, MD 1,483,076 198.60 15.54 9.39 14.81 1.74 3.74 24,997 9,018 12.76 59.58 175 Eagle Financial Services (EFSI) Berryville, VA 799,617 115.03 33.25 9.39 10.67 1.16 4.06 9,001 6,862 8.65 65.87 176 QNB Corp. (QNBC) Quakertown, PA 1,175,452 131.02 37.57 9.36 10.47 0.96 3.13 11,335 5,304 9.13 62.92 177 Bankwell Financial Group (BWFG) New Canaan, CT 1,873,665 225.00 28.95 9.35 10.19 0.94 3.18 17,433 3,678 9.30 58.95 178 Sturgis Bancorp (STBI) Sturgis, MI 431,575 62.07 29.50 9.35 11.19 1.01 3.77 4,373 5,019 (3.84) 73.22 179 Harleysville Financial Corp. (HARL) Harleysville, PA 771,816 92.38 24.50 9.33 11.01 1.01 3.20 7,820 2,597 3.33 57.78 180 Three Shores Bancorp. (TSHR) Orlando, FL 1,882,689 176.46 9.71 9.31 12.79 0.95 2.92 17,172 8,677 2.84 59.10 181 Mission Valley Bancorp (MVLY) Sun Valley, CA 350,968 48.18 14.90 9.30 8.30 1.16 4.94 3,832 2,683 9.47 68.28 182 Pinnacle Bancshares (PCLB) Jasper, AL 220,981 26.09 25.00 9.29 9.86 1.17 3.77 2,596 1,761 5.18 66.43 183 Shore Community Bank (SHRC) Toms River, NJ 267,549 43.26 13.85 9.28 13.60 1.45 3.88 4,002 945 (0.57) 52.73 184 Middlefield Banc Corp. (MBCN) Middlefield, OH 1,248,398 138.18 42.59 9.26 9.94 1.09 3.77 12,431 3,737 8.77 63.47 185 Surrey Bancorp (SRYB) Mount Airy, NC 309,150 60.27 14.77 9.26 11.72 1.69 4.53 5,102 2,646 5.54 58.02 186 Logansport Financial (LOGN) Logansport, IN 173,245 24.98 40.50 9.25 9.76 1.27 3.70 2,231 885 1.98 61.81 187 Peoples Bancorp of N.C. (PEBK) Newton, NC 1,093,251 166.07 27.70 9.23 10.81 1.22 4.39 13,382 15,590 2.63 71.04 188 Grand Bank Corp. (GABK) Marblehead, MA 328,925 67.92 6050.00 9.22 9.60 1.09 3.31 3,534 1,754 15.94 61.30 189 Southern Michigan Bancorp (SOMC) Coldwater, MI 738,831 87.83 38.05 9.20 11.28 1.10 3.77 8,125 6,616 7.74 68.64 190 Central Valley Community (CVCY) Fresno, CA 1,537,836 274.93 20.05 9.20 10.07 1.35 4.44 21,289 8,463 4.76 61.23 191 First Citrus Bancorp. (FCIT) Tampa, FL 403,299 50.94 25.50 9.19 12.13 1.03 4.10 3,895 1,838 9.70 64.68 192 SouthEast Bank Farragut, TN 1,244,226 NA NA 9.19 10.45 0.96 3.94 13,283 8,560 12.36 68.72 193 CMUV Bancorp (CMUV) El Centro, CA 195,530 21.68 9.64 9.18 10.34 1.21 5.49 2,044 604 11.38 62.46 194 Citizens B & T Holdings Guntersville, AL 519,569 NA NA 9.18 10.93 0.99 3.74 4,778 3,249 10.93 71.02 195 Ames National Corp. (ATLO) Ames, IA 1,455,687 255.38 27.63 9.16 10.09 1.23 3.23 17,014 7,738 6.84 52.61 196 CNB Corp. (CNBW) Conway, SC 1,187,973 120.48 74.50 9.16 11.51 1.10 3.12 12,905 9,074 2.26 61.48 197 Riverview Bancorp (RVSB) Vancouver, WA 1,151,225 176.57 7.81 9.15 13.27 1.41 4.32 16,068 11,362 5.19 63.24 198 IFB Holdings (IFBH) Chillicothe, MO 69,973 9.09 51.75 9.14 9.84 1.17 3.35 827 293 (1.93) 60.44 199 Sound Financial Bancorp (SFBC) Seattle, WA 716,735 87.30 34.75 9.13 9.87 0.98 4.25 7,039 4,016 18.58 71.73 200 Codorus Valley Bancorp (CVLY) York, PA 1,807,480 215.92 22.83 9.10 11.42 1.11 3.84 19,542 13,314 10.72 64.09 Median: Top 200 institutions 715,701 101.34 27.70 10.69 12.45 1.24 3.85 8,603 4,935 7.25 62.24 Median: All 601 institutions 500,795 64.28 21.38 8.04 9.66 0.96 3.73 4,591 3,006 6.37 68.72 Average: Top 200 institutions 804,747 121.72 238.96 11.19 12.72 1.29 3.95 10,102 7,269 9.31 61.89 Average: All 601 institutions 659,741 92.31 108.33 7.44 8.96 0.93 3.78 6,481 5,331 8.84 69.62

Metrics & Measures


Source: Capital Performance Group analysis of data from S&P Global Market Intelligence. Ranking is of bank holding companies, banks, and thrifts that had total assets of less than $2 billion as of Dec. 31, 2018, and that are publicly traded or report financials to the SEC. Ranking is based on three-year average ROAE for 2016 to 2018. Additional data shown is for the 12 months ended Dec. 31, 2018. Financials are sourced from SEC filings. If unavailable, regulatory financials were used. Excludes institutions that failed to report GAAP or regulatory data for any year during the ranking period. Excludes institutions with a leverage ratio of less than 5%, a Tier 1 risk-based capital ratio of less than 6%, or a total risk-based capital ratio of less than 10% in any quarter. Excludes industrial banks and institutions that operated as a subchapter S corporation at any time during the ranking period. Also excludes institutions that received a tax benefit of greater than 10% of net income in 2016, 2017 or 2018. Using the preceding criteria, 102 publicly traded institutions in this size range were excluded. A total of 601 institutions qualified for the ranking. All data as of March 17, including closing prices. * Denotes institutions that were acquired or merged between Jan. 1, 2019, and March 21, 2019.



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91 Liberty Bancorp (LBCP) Kansas City, MO 540,485 119.25 24.25 10.80 14.29 1.64 4.70 8,657 3,812 6.28 55.22 92 Cornerstone Community (CRSB) Red Bluff, CA 266,361 26.53 17.50 10.80 13.72 1.13 4.18 2,776 695 14.42 62.38 93 Kentucky Bancshares (KTYB) Paris, KY 1,086,012 146.54 24.50 10.80 12.36 1.18 3.70 12,430 13,037 3.43 68.78 94 SB Financial Group (SBFG) Defiance, OH 986,828 120.38 18.59 10.79 9.61 1.23 3.95 11,638 16,554 9.72 69.30 95 Fidelity D & D Bancorp (FDBC) Dunmore, PA 981,102 225.38 59.95 10.78 12.36 1.20 3.64 11,006 9,190 4.97 61.67 96 Mountain Commerce (MCBI) Knoxville, TN 849,145 118.37 19.12 10.74 14.41 1.28 3.53 10,183 1,945 4.32 48.52 97 BEO Bancorp (BEOB) Heppner, OR 416,600 34.33 29.00 10.71 10.36 0.98 5.34 3,949 2,738 5.29 68.59 98 Oak Valley Bancorp (OVLY) Oakdale, CA 1,094,887 147.04 18.18 10.70 12.26 1.08 3.89 11,537 4,438 11.62 62.40 99 Killbuck Bancshares (KLIB) Killbuck, OH 521,897 108.99 185.00 10.69 12.73 1.40 3.67 7,383 2,399 8.20 55.56 100 Level One Bancorp (LEVL) Farmington Hills, MI 1,416,215 188.41 24.31 10.69 10.68 1.07 3.92 14,386 7,126 10.06 68.19 101 First Community Bancorp Shelbyville, TN 474,754 NA NA 10.68 4.68 0.56 3.36 2,813 43,454 (0.36) 93.51 102 SVB&T Corp. (SVBT) Jasper, IN 400,954 44.67 79.90 10.68 10.74 1.05 3.51 4,149 5,189 4.46 68.81 103 Huron Valley Bancorp (HVLM) Milford, MI 150,846 12.11 14.10 10.67 12.03 1.21 4.28 1,754 447 6.73 62.08 104 Community Financial (CFGW) Spokane, WA 434,324 45.39 28.35 10.63 13.06 1.27 4.72 5,235 5,225 14.24 69.84 105 American Bank Inc. (AMBK) Allentown, PA 621,969 65.84 11.60 10.61 11.70 1.17 3.10 7,270 1,194 7.33 50.16 106 Centric Financial Corp. (CFCX) Harrisburg, PA 704,396 93.57 10.71 10.59 13.85 1.21 3.95 8,004 4,434 20.59 61.35 107 Chesapeake Financial (CPKF) Kilmarnock, VA 854,766 110.63 27.00 10.59 12.27 1.34 4.35 10,820 18,474 4.88 72.59 108 Northeast Ind. Bancorp (NIDB) Huntington, IN 334,211 43.31 35.90 10.57 11.46 1.28 3.60 4,167 3,259 10.01 63.45 109 Mifflinburg Bancorp (MIFF) Mifflinburg, PA 438,368 44.28 23.65 10.55 12.45 1.14 3.24 4,975 2,141 6.91 56.76 110 Oak Ridge Financial (BKOR) Oak Ridge, NC 453,341 38.16 14.72 10.50 12.33 0.91 3.73 3,980 3,056 6.43 74.38 111 Woodlands Financial (WDFN) Williamsport, PA 414,311 44.71 29.00 10.48 13.82 1.35 3.67 5,460 3,465 4.31 67.47 112 Avidbank Holdings (AVBH) San Jose, CA 917,144 143.24 24.00 10.48 11.83 1.28 4.58 11,120 2,414 18.59 58.41 113 Henderson Bancshares Troy, AL 875,923 NA NA 10.48 12.70 1.42 3.74 12,752 7,763 4.18 56.97 114 Embassy Bancorp (EMYB) Bethlehem, PA 1,099,387 112.50 15.05 10.47 12.10 0.96 3.19 10,079 1,733 4.85 60.51 115 Lighthouse Bank (LGHT) Santa Cruz, CA 303,939 62.09 23.86 10.45 13.47 1.75 5.40 4,937 310 14.26 49.00 116 F & M Bank Corp. (FMBM) Timberville, VA 780,253 104.54 32.56 10.45 9.90 1.19 4.65 9,095 6,709 8.19 69.08 117 Somerset Trust Holding Co. (SOME) Somerset, PA 1,230,098 103.42 42.41 10.43 12.45 0.91 4.39 10,829 12,721 12.72 75.08 118 Evans Bancorp (EVBN) Hamburg, NY 1,388,207 172.45 35.80 10.35 13.20 1.20 3.73 16,356 15,081 12.18 68.07 119 Southwest Georgia Financial (SGB) Moultrie, GA 534,701 49.39 19.40 10.34 11.09 0.92 3.99 4,682 4,361 4.59 72.16 120 Community First Bank of Ind. Kokomo, IN 286,626 NA NA 10.33 11.73 1.23 4.48 3,195 1,811 1.44 63.52 121 Peoples Bancorp (PPBB) Bellingham, WA 1,731,729 302.41 237.50 10.30 12.46 1.40 4.25 23,670 19,324 2.51 65.78 122 Blackhawk Bancorp (BHWB) Beloit, WI 817,287 93.67 28.50 10.29 10.19 1.06 3.83 8,142 11,496 17.00 71.02 123 Colony Bankcorp (CBAN) Fitzgerald, GA 1,251,878 149.22 17.67 10.16 13.32 0.99 3.56 11,917 9,505 3.59 69.51 124 Farmers Bankshares (FBVA) Windsor, VA 478,245 56.89 18.50 10.15 10.16 1.04 3.70 4,875 6,100 13.67 70.18 125 NorthWest Indiana Bancorp (NWIN) Munster, IN 1,096,158 147.24 42.65 10.14 9.88 0.93 3.67 9,337 7,845 15.24 68.81 126 Farmers and Merchants (FMFG) Hampstead, MD 417,158 51.08 30.35 10.10 10.79 1.14 3.84 4,713 1,432 2.12 62.23 127 First Pulaski National Corp. Pulaski, TN 851,418 NA NA 10.09 12.18 1.22 3.84 10,127 5,255 6.33 60.23 128 First Citizens Bancshares (FIZN) Dyersburg, TN 1,703,271 237.69 62.00 10.07 10.23 1.13 3.74 18,823 15,383 5.61 65.27 129 River Valley Community (RVCB) Yuba City, CA 376,986 46.50 19.50 10.05 12.64 1.02 3.20 3,656 563 26.25 55.00 130 West Town Bancorp (WTWB) Raleigh, NC 555,324 60.33 23.00 10.04 16.41 2.24 4.41 12,136 15,097 61.29 77.99 131 Community National Corp. Lexington, TN 156,259 NA NA 10.02 9.14 0.86 4.19 1,288 655 11.10 72.15 132 Farmers & Merchants (FMAO) Archbold, OH 1,116,163 319.77 28.79 10.00 10.86 1.34 3.80 14,949 10,873 9.56 61.64 133 ACNB Corp. (ACNB) Gettysburg, PA 1,647,724 255.70 36.29 9.97 13.62 1.34 3.81 21,748 16,107 14.09 59.87 134 Cortland Bancorp (CLDB) Cortland, OH 714,666 102.22 23.50 9.96 14.36 1.31 3.76 8,835 4,165 (1.89) 64.83 135 First Capital (FCAP) Corydon, IN 794,162 171.59 51.00 9.93 11.47 1.19 3.79 9,266 6,646 6.70 61.13 136 First Guaranty Bancshares (FGBI) Hammond, LA 1,817,211 186.23 21.15 9.92 9.98 0.82 3.41 14,213 7,110 16.66 66.34 137 First Northern Community (FNRN) Dixon, CA 1,249,845 134.08 11.45 9.91 12.00 1.03 3.79 12,551 7,229 9.40 62.31 138 United Security Bancshares (UBFO) Fresno, CA 933,058 180.48 10.65 9.91 13.23 1.61 4.27 14,017 4,483 5.70 54.14 139 BancAffiliated (BAFI) Arlington, TX 751,688 49.73 127.00 9.90 4.17 0.48 2.55 3,413 4,257 (41.87) 70.91 140 Century Next Financial (CTUY) Ruston, LA 462,247 53.17 33.00 9.88 10.85 1.08 4.23 3,429 1,987 32.78 66.52 141 U & I Financial Corp. (UNIF) Lynnwood, WA 304,885 51.35 9.21 9.85 11.01 1.61 4.30 4,507 2,423 12.29 57.02 142 First Bankers Trustshares (FBTT) Quincy, IL 930,044 108.83 35.25 9.84 9.68 0.89 3.04 8,382 17,515 (8.19) 60.68 143 CalWest Bancorp (CALW) Santa Margarita, CA 195,253 28.73 0.39 9.83 10.32 0.88 3.71 1,623 908 22.23 81.15 144 Citizens First Corp. (CZFC) Bowling Green, KY 475,982 64.33 25.35 9.83 10.12 1.01 3.52 4,819 3,608 3.33 67.74 145 First National of Groton (FIGR) Groton, NY 182,939 33.00 550.00 9.82 11.61 1.51 4.38 2,744 819 (0.10) 54.93 146 Croghan Bancshares (CHBH) Fremont, OH 847,552 115.47 50.75 9.80 10.79 1.45 4.22 12,002 6,220 (0.11) 60.02 147 Security Capital Corp. Batesville, MS 546,716 NA NA 9.80 11.66 1.32 4.38 7,422 8,036 5.48 64.42

148 Heartland Bancshares Sebring, FL 380,287 NA NA 9.74 13.90 1.23 3.21 4,683 1,527 1.13 52.97 149 Solvay Bank Corp. (SOBS) Solvay, NY 908,130 94.68 43.00 9.73 10.97 0.96 2.95 8,539 5,261 3.29 61.75 150 Presidio Bank (PDOB) San Francisco, CA 862,464 166.94 26.75 9.73 14.50 1.42 4.34 11,829 1,221 10.79 55.89 151 Oconomowoc Bancshares (OCNB) Oconomowoc, WI 1,177,084 95.51 285.00 9.71 9.65 0.71 3.48 8,218 15,645 1.85 81.18 152 Jonestown Bank and Trust (JNES) Jonestown, PA 588,729 53.56 22.20 9.70 9.57 0.84 3.55 4,845 3,404 15.22 71.42 153 Pacific Financial Corp. (PFLC) Aberdeen, WA 907,929 119.98 11.34 9.66 12.63 1.25 4.46 11,330 10,031 2.48 71.07 154 Auburn National Bancorp. (AUBN) Auburn, AL 818,077 125.77 35.00 9.66 10.14 1.08 3.40 8,834 3,325 6.49 60.57 155 Dart Financial Corp. (DRTF) Mason, MI 454,157 NA NA 9.65 10.39 0.91 4.17 3,860 10,066 5.34 81.80 156 FCN Banc Corp. (FBVI) Brookville, IN 443,563 52.22 34.75 9.65 11.30 1.19 3.64 5,283 2,310 1.38 61.10 157 Community Bank of Pickens County Jasper, GA 354,215 NA NA 9.63 13.16 1.38 4.34 4,790 2,692 (1.05) 62.77 158 Allegheny Bancshares Franklin, WV 307,536 NA NA 9.63 10.35 1.29 4.51 3,884 2,346 9.29 63.44 159 New Tripoli Bancorp (NTBP) New Tripoli, PA 480,323 61.85 972.00 9.62 9.73 1.10 3.18 5,045 821 0.72 58.00 160 FvCBankcorp (AQFH) Cornelius, NC 460,113 46.33 11.47 9.59 13.46 0.98 3.58 4,248 4,129 11.16 74.79 161 Ledyard Financial Group (LFGP) Hanover, NH 487,261 64.78 20.10 9.59 11.00 1.07 3.37 5,152 12,093 7.51 78.51 162 Bank of Princeton (BPRN) Princeton, NJ 1,251,564 214.29 32.22 9.57 8.37 1.20 3.52 14,708 2,661 8.42 56.69 163 CBC Holding Co. (CBHC) Fitzgerald, GA 158,202 8.20 13.50 9.57 11.56 1.46 4.40 2,200 1,147 5.71 58.13 164 River Financial Corp. (RVRF) Prattville, AL 1,070,362 170.70 30.00 9.57 9.46 1.07 4.10 9,332 6,634 19.80 62.31 165 Benton Financial Corp. (BTOF) Fowler, IN 167,052 20.56 30.00 9.54 10.19 1.42 4.16 2,304 768 7.25 65.82 166 Andover Bancorp (ANDC) Andover, OH 395,770 56.24 23.00 9.50 10.15 0.96 3.21 3,864 3,120 (2.95) 72.35 167 First Farmers and Merchants (FFMH) Columbia, TN 1,365,117 198.62 44.62 9.49 11.44 1.04 3.23 14,213 13,482 6.36 70.08 168 Ballston Spa Bancorp (BSPA) Ballston Spa, NY 534,455 43.82 59.00 9.48 10.91 0.89 3.86 4,554 3,650 6.37 70.76 169 County Bank Corp (CBNC) Lapeer, MI 616,564 79.57 45.55 9.45 12.00 1.13 3.76 6,960 5,613 0.25 66.41 170 Virginia Community (VCBS) Louisa, VA 247,470 27.38 36.50 9.44 9.54 0.97 4.50 2,414 1,391 12.90 78.91 171 Cornerstone Bancorp Palatine, IL 568,354 NA NA 9.43 12.69 1.26 3.78 7,009 4,366 8.97 62.13 172 York Traditions Bank (YRKB) York, PA 482,918 56.01 19.85 9.42 10.01 1.03 3.54 4,728 5,462 6.58 70.23 173 Coastal Financial Corp. (CCB) Everett, WA 952,110 191.36 16.09 9.41 11.40 1.14 4.24 9,701 5,467 16.86 65.08 174 Shore Bancshares (SHBI) Easton, MD 1,483,076 198.60 15.54 9.39 14.81 1.74 3.74 24,997 9,018 12.76 59.58 175 Eagle Financial Services (EFSI) Berryville, VA 799,617 115.03 33.25 9.39 10.67 1.16 4.06 9,001 6,862 8.65 65.87 176 QNB Corp. (QNBC) Quakertown, PA 1,175,452 131.02 37.57 9.36 10.47 0.96 3.13 11,335 5,304 9.13 62.92 177 Bankwell Financial Group (BWFG) New Canaan, CT 1,873,665 225.00 28.95 9.35 10.19 0.94 3.18 17,433 3,678 9.30 58.95 178 Sturgis Bancorp (STBI) Sturgis, MI 431,575 62.07 29.50 9.35 11.19 1.01 3.77 4,373 5,019 (3.84) 73.22 179 Harleysville Financial Corp. (HARL) Harleysville, PA 771,816 92.38 24.50 9.33 11.01 1.01 3.20 7,820 2,597 3.33 57.78 180 Three Shores Bancorp. (TSHR) Orlando, FL 1,882,689 176.46 9.71 9.31 12.79 0.95 2.92 17,172 8,677 2.84 59.10 181 Mission Valley Bancorp (MVLY) Sun Valley, CA 350,968 48.18 14.90 9.30 8.30 1.16 4.94 3,832 2,683 9.47 68.28 182 Pinnacle Bancshares (PCLB) Jasper, AL 220,981 26.09 25.00 9.29 9.86 1.17 3.77 2,596 1,761 5.18 66.43 183 Shore Community Bank (SHRC) Toms River, NJ 267,549 43.26 13.85 9.28 13.60 1.45 3.88 4,002 945 (0.57) 52.73 184 Middlefield Banc Corp. (MBCN) Middlefield, OH 1,248,398 138.18 42.59 9.26 9.94 1.09 3.77 12,431 3,737 8.77 63.47 185 Surrey Bancorp (SRYB) Mount Airy, NC 309,150 60.27 14.77 9.26 11.72 1.69 4.53 5,102 2,646 5.54 58.02 186 Logansport Financial (LOGN) Logansport, IN 173,245 24.98 40.50 9.25 9.76 1.27 3.70 2,231 885 1.98 61.81 187 Peoples Bancorp of N.C. (PEBK) Newton, NC 1,093,251 166.07 27.70 9.23 10.81 1.22 4.39 13,382 15,590 2.63 71.04 188 Grand Bank Corp. (GABK) Marblehead, MA 328,925 67.92 6050.00 9.22 9.60 1.09 3.31 3,534 1,754 15.94 61.30 189 Southern Michigan Bancorp (SOMC) Coldwater, MI 738,831 87.83 38.05 9.20 11.28 1.10 3.77 8,125 6,616 7.74 68.64 190 Central Valley Community (CVCY) Fresno, CA 1,537,836 274.93 20.05 9.20 10.07 1.35 4.44 21,289 8,463 4.76 61.23 191 First Citrus Bancorp. (FCIT) Tampa, FL 403,299 50.94 25.50 9.19 12.13 1.03 4.10 3,895 1,838 9.70 64.68 192 SouthEast Bank Farragut, TN 1,244,226 NA NA 9.19 10.45 0.96 3.94 13,283 8,560 12.36 68.72 193 CMUV Bancorp (CMUV) El Centro, CA 195,530 21.68 9.64 9.18 10.34 1.21 5.49 2,044 604 11.38 62.46 194 Citizens B & T Holdings Guntersville, AL 519,569 NA NA 9.18 10.93 0.99 3.74 4,778 3,249 10.93 71.02 195 Ames National Corp. (ATLO) Ames, IA 1,455,687 255.38 27.63 9.16 10.09 1.23 3.23 17,014 7,738 6.84 52.61 196 CNB Corp. (CNBW) Conway, SC 1,187,973 120.48 74.50 9.16 11.51 1.10 3.12 12,905 9,074 2.26 61.48 197 Riverview Bancorp (RVSB) Vancouver, WA 1,151,225 176.57 7.81 9.15 13.27 1.41 4.32 16,068 11,362 5.19 63.24 198 IFB Holdings (IFBH) Chillicothe, MO 69,973 9.09 51.75 9.14 9.84 1.17 3.35 827 293 (1.93) 60.44 199 Sound Financial Bancorp (SFBC) Seattle, WA 716,735 87.30 34.75 9.13 9.87 0.98 4.25 7,039 4,016 18.58 71.73 200 Codorus Valley Bancorp (CVLY) York, PA 1,807,480 215.92 22.83 9.10 11.42 1.11 3.84 19,542 13,314 10.72 64.09 Median: Top 200 institutions 715,701 101.34 27.70 10.69 12.45 1.24 3.85 8,603 4,935 7.25 62.24 Median: All 601 institutions 500,795 64.28 21.38 8.04 9.66 0.96 3.73 4,591 3,006 6.37 68.72 Average: Top 200 institutions 804,747 121.72 238.96 11.19 12.72 1.29 3.95 10,102 7,269 9.31 61.89 Average: All 601 institutions 659,741 92.31 108.33 7.44 8.96 0.93 3.78 6,481 5,331 8.84 69.62


Source: Capital Performance Group analysis of data from S&P Global Market Intelligence. Ranking is of bank holding companies, banks, and thrifts that had total assets of less than $2 billion as of Dec. 31, 2018, and that are publicly traded or report financials to the SEC. Ranking is based on three-year average ROAE for 2016 to 2018. Additional data shown is for the 12 months ended Dec. 31, 2018. Financials are sourced from SEC filings. If unavailable, regulatory financials were used. Excludes institutions that failed to report GAAP or regulatory data for any year during the ranking period. Excludes institutions with a leverage ratio of less than 5%, a Tier 1 risk-based capital ratio of less than 6%, or a total risk-based capital ratio of less than 10% in any quarter. Excludes industrial banks and institutions that operated as a subchapter S corporation at any time during the ranking period. Also excludes institutions that received a tax benefit of greater than 10% of net income in 2016, 2017 or 2018. Using the preceding criteria, 102 publicly traded institutions in this size range were excluded. A total of 601 institutions qualified for the ranking. All data as of March 17, including closing prices. * Denotes institutions that were acquired or merged between Jan. 1, 2019, and March 21, 2019.



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The Purpose-Driven Chief ExecutiveHow a rapidly changing workforce, a more activist public and the rise of socially responsible investors have fundamentally changed the role of the bank CEOBy Alan Kline

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

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The Purpose-Driven Chief ExecutiveHow a rapidly changing workforce, a more activist public and the rise of socially responsible investors have fundamentally changed the role of the bank CEOBy Alan Kline

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

Few issues in this country are as divisive as gun violence, so when Bank of America announced after last year’s Parkland, Fla., school shooting that it would stop lending to

certain gun manufacturers, it drew both praise and scorn from investors.

Some said they were proud to be share-holders in a company that was willing to take a stand on an issue so politically charged. Others were incredulous, arguing to Chair-man and Chief Executive Brian Moynihan that the decision was financially irresponsible.

“The company is willfully giving up money,” investor Justin Danhof, the general counsel of a group called the Free Enterprise Project, said to Moynihan during a question-and-an-swer session at BofA’s 2018 annual meeting. “That’s an odd choice for a bank.”

Moynihan, though, said that the impact on the bottom line and share price was second-ary to the feelings of BofA’s staff. More than 150 employees had lost a friend or relative in mass shootings and Moynihan told share-holders that, after Parkland, many had urged the bank to take meaningful action to help curb the violence. “This doesn’t come from

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us,” Moynihan said, referring to the company’s senior leaders. “This comes from our teammates, saying we have to help.”

That Moynihan responded so swiftly to the wishes of employees says a lot about how workplace dynamics are shifting — and how the role of the bank CEO itself is changing.

CEOs have historically operated under the mantra that they would do what’s in the best interests of share-holders, even if the business practices weren’t necessarily good for customers and society at large. There’s even a 2003 documentary called “The Corpo-ration” that makes a case about how corporate practices — tied as they are to the pursuit of profit — fit the very definition of psychopathic behavior.

But CEOs are now dealing with a far different type of worker than their predecessors ever did. Owing partly to the influx of millennials, who now make up a majority of the workforce, employ-ees today have high expectations of how their companies should behave and what they should stand for. The prediction is that these expectations will ratchet up further as even younger people enter the workforce.

This shift is happening at a time of rapid change in the financial services industry, when attracting and retaining top talent has never been more important. If CEOs aren’t focused on building workplaces that are nurturing, forward-thinking, inclusive and val-ues-based, then their companies will surely lose the talent war, said Steve Bradshaw, the president and CEO of the $38 billion-asset BOK Financial in Tulsa, Okla.

“If you’re the CEO of a public company, your purpose is to increase shareholder value — that description hasn’t changed,” said Bradshaw, a 28-year veteran of BOK who became CEO in 2014. “But that’s not a motivat-

ing factor for a lot of your workforce. Workers today want to understand what your purpose is, what you stand for, how you deal with customers, how you problem solve and how you engage in the communities that you are part of. That’s how a lot of employees grade the value of the company, and if that grade slips, people will go to work at places that will give them a better sense of belonging.”

Shifting expectations of regulators and investors are also fundamentally changing the way bank CEOs are leading.

Regulators are paying far more attention to issues around governance, reputation and culture than they did before the financial crisis, and they have made clear that it is on CEOs to ensure that companies are treating customers fairly, meeting their commu-nity development obligations and not taking shortcuts to hit profit targets.

And while there will always be investors who care primarily about next quarter’s results, an increasing number of them also expect CEOs to take leadership roles on pressing social, political and economic issues. Some are even basing investment decisions on companies’ records on issues such as climate change, financial inclusion or gender and racial equality.

The pressure is immense — not just to meet all of these responsibilities, but to display leadership in doing so. Every step — and misstep — happens on a much more public stage than it did in decades past, fanned by social media and a nonstop news cycle.

The upshot is that the job of the bank CEO is far more complex than it was just 10 years ago, said John Turner, the president and CEO of Regions Financial in Birmingham, Ala.

“Back then, the role was primarily about running the bank, [managing] board relationships and periodically

interacting with regulators,” Turner said. “Today the role is much broader in terms of constituents you interact with.”

Not that Turner is complaining. As he sees it, the added pressure is making the $126 billion-asset Regions a better bank. “If we are going to do business well, we have to do the right thing and do it the right way,” said Turner, who had previously been a CEO at Whitney Holding Co. in New Orleans and took the helm at Regions last year. “If we do that, we believe it creates value for all parties, which ultimately impacts returns for our shareholders over time.”

The war for talentWorkers in other industries have higher expectations of their CEOs as well, but there’s no denying that after the financial crisis, bank CEOs in particular needed to rethink their priorities. The sketchy practices of some banks — from offering mortgages to consumers with questionable credit and little income documentation to purposely maximizing overdraft fees by reorder-ing checks to process ones with the highest dollar amounts first — tar-nished the entire industry and contrib-uted to a perception that banks were prioritizing profits over doing right by customers, employees and the communities they serve.

It’s fair to wonder, then, if CEOs will remain so purpose-driven the next time the economy turns and banks’ profits, which hit record highs in 2018, start to shrink.

In his recent book “The Enlightened Capitalists: Cautionary Tales of Business Pioneers Who Tried to Do Well by Doing Good,” James O’Toole, a business professor at the University of Southern California, concluded that many companies’ good intentions are often derailed by the short-term demands of shareholders. That pressure is still evident on quarterly

earnings calls, where investment analysts are more likely to press CEOs on strategies for boosting net interest margins or lowering efficiency ratios than ask about their sustainability or diversity programs.

But nearly a dozen CEOs who spoke to American Banker for this story insisted that they have to lead differently primarily because the makeup of the workforce is changing rapidly.

Younger workers demand work-life balance, they expect their bosses to take an interest in them professionally and personally and they want to be engaged in the communities where they live and work. Companies are responding by investing heavily in staff development and training, encourag-ing employees to volunteer during work hours, and providing once-unheard-of perks — think personal concierges to handle daily tasks and breast-milk delivery for new moms traveling on business.

How much clout do workers have today? When Bank of New York Mellon tried earlier this year to impose restrictions on working from home, the staff revolted and Chairman and CEO Charles Scharf had to quickly table the idea. “We have listened and learned,” Scharf said in an email to employees in early March.

Workers also expect CEOs to pay more than just lip service to issues around corporate social responsibility and workplace diversity. BOK, for example, recently established a diversi-ty-and-inclusion council to help create more opportunities for women and minorities and, to show that he’s serious about the effort, Bradshaw is chairing the council himself.

Perhaps the biggest change taking place is in the way CEOs are interact-ing with rank-and-file employees.

A generation ago, CEOs primarily

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interacting with regulators,” Turner said. “Today the role is much broader in terms of constituents you interact with.”

Not that Turner is complaining. As he sees it, the added pressure is making the $126 billion-asset Regions a better bank. “If we are going to do business well, we have to do the right thing and do it the right way,” said Turner, who had previously been a CEO at Whitney Holding Co. in New Orleans and took the helm at Regions last year. “If we do that, we believe it creates value for all parties, which ultimately impacts returns for our shareholders over time.”

The war for talentWorkers in other industries have higher expectations of their CEOs as well, but there’s no denying that after the financial crisis, bank CEOs in particular needed to rethink their priorities. The sketchy practices of some banks — from offering mortgages to consumers with questionable credit and little income documentation to purposely maximizing overdraft fees by reorder-ing checks to process ones with the highest dollar amounts first — tar-nished the entire industry and contrib-uted to a perception that banks were prioritizing profits over doing right by customers, employees and the communities they serve.

It’s fair to wonder, then, if CEOs will remain so purpose-driven the next time the economy turns and banks’ profits, which hit record highs in 2018, start to shrink.

In his recent book “The Enlightened Capitalists: Cautionary Tales of Business Pioneers Who Tried to Do Well by Doing Good,” James O’Toole, a business professor at the University of Southern California, concluded that many companies’ good intentions are often derailed by the short-term demands of shareholders. That pressure is still evident on quarterly

earnings calls, where investment analysts are more likely to press CEOs on strategies for boosting net interest margins or lowering efficiency ratios than ask about their sustainability or diversity programs.

But nearly a dozen CEOs who spoke to American Banker for this story insisted that they have to lead differently primarily because the makeup of the workforce is changing rapidly.

Younger workers demand work-life balance, they expect their bosses to take an interest in them professionally and personally and they want to be engaged in the communities where they live and work. Companies are responding by investing heavily in staff development and training, encourag-ing employees to volunteer during work hours, and providing once-unheard-of perks — think personal concierges to handle daily tasks and breast-milk delivery for new moms traveling on business.

How much clout do workers have today? When Bank of New York Mellon tried earlier this year to impose restrictions on working from home, the staff revolted and Chairman and CEO Charles Scharf had to quickly table the idea. “We have listened and learned,” Scharf said in an email to employees in early March.

Workers also expect CEOs to pay more than just lip service to issues around corporate social responsibility and workplace diversity. BOK, for example, recently established a diversi-ty-and-inclusion council to help create more opportunities for women and minorities and, to show that he’s serious about the effort, Bradshaw is chairing the council himself.

Perhaps the biggest change taking place is in the way CEOs are interact-ing with rank-and-file employees.

A generation ago, CEOs primarily

relied on a small circle of senior leaders and board members for counsel and may have interacted with employees “once or twice a year,” said Bryan Jordan, the chairman, president and CEO of the $41 billion-asset First Horizon in Memphis, Tenn. Today, CEOs are far more visible within their organizations, routinely meeting with and seeking feedback from employees, through candid town halls, brown-bag lunches or simply by dropping into branches or call centers unannounced. Jordan sometimes holds office hours where he takes calls on his direct line from employees wanting to voice concerns or discuss company policies.

Cam Marston, the president of Generational Insights, a Mobile, Ala., research and consulting firm, said that younger workers want to be heard and crave affirmation in ways that older generations never did. These are individuals who received an abun-dance of attention and feedback when they were growing up and they want the same in the workplace.

Marston’s research has also found that many people, particularly those under 45, expect their workplace to make them happy. “Historically, workplaces weren’t designed this way,” he said. “You had a job, you did your

job and you created happiness on your own time.”

Given these dramatic shifts, it is crucial that managers — up to and including the CEO — take a true interest in their employees, Marston said. “In a fast-paced world this can be hard to do,” Marston acknowledged. “But what I tell CEOs is that they have two choices: You can stop, talk to employees, make eye contact and ask follow-up questions, or you can struggle with turnover.”

Sydney Finkelstein, a professor of business at Dartmouth College and the author of many books on leadership, agreed, adding that banks are already losing top college graduates to a technology industry that seems to have “an endless capacity to hire.”

“There’s always been a lot of variation with respect to how CEOs treat people and how they think about employees,” said Finkelstein, who also hosts a podcast on leadership. “What’s changed is that those CEOs who spend less time on talent and people issues today are going to pay a bigger price than they ever did before.”

The communication works both ways. Kessel Stelling, chairman and CEO of the $45 billion-asset Synovus Financial in Columbus, Ga., said that while “managing by walking around” is not necessarily new, it is “more impera-tive today” because it both makes employees feel more valued and gives him vital feedback on policies, products or competitive threats in real time.

“It really allows me to be a better, more informed leader,” he said.

Teresa Tanner strongly advocated for Greg Carmichael to become Fifth Third’s chief executive because he wasn’t a traditional banker.

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When he was CEO at WSFS Financial in Wilmington, Del., Mark Turner made it part of his routine to visit branches, operations centers, wealth management offices and other locations and develop friendly relation-ships with employees.

“Whether it’s in the back office or on the front lines, CEOs and other executives need to know what’s going on in their business,” said Turner, who stepped down as CEO in December but remains executive chairman of the $13 billion-asset company. “If we gain an account from a competitor, why? If we lose one, why did the customer say they were leaving? You can only get that information from the people who are seeing it firsthand. …

“And only when you have genuine, open relationships do you get real honest feedback as opposed to hearing

what they think you want to hear.”Banks are giving workers a voice in

myriad other ways as well: establishing employee engagement councils that meet regularly with the CEO, conduct-ing frequent surveys and providing access to digital tools that allow employees to give instant feedback on company policies.

BBVA Compass in Birmingham, Ala., uses a Twitter-like tool, dubbed Ignite, to gauge employee sentiment on a range of issues. It was through this tool that senior leaders first learned of associates’ frustrations with the frequency and length of meetings, and they responded by creating what’s called a “meeting manifesto,” a guidebook that sets strict limits on meetings, including who needs to be

there, how long they should last and when they should be held.

The bank has also introduced perks such as extended leave for new parents and overnight breast-milk delivery for new mothers traveling on business, all as part of a broader effort to support employees and reduce turnover, said Rosilyn Houston, the chief talent and culture executive at the $91 billion-as-set BBVA Compass.

This heightened focus on employees’ well-being is raising the stature of banks’ human resources departments.

Sandy Weill, the former CEO at Citigroup, used to disparage HR departments as nothing but cost centers. BBVA Compass, by contrast, rebranded its HR department as the office of talent and culture in 2016 under then-CEO Manolo Sanchez, and armed it with the resources needed to

improve everything from hiring practices to benefits offerings.

Houston said it was a significant change because “it moved HR from an administrative function to a strategic function within the organization.”

At Fifth Third, the HR department played a crucial role in the promotion of Greg Carmichael, who had been its chief operating officer, to the CEO position in 2015. Teresa Tanner, the bank’s current chief administrative officer, who was head of human resources at the time, was involved in the search process from the beginning, and strongly advocated for Carmichael because he was not a traditional banker — he joined the bank as head of information technology — and she believed he would bring fresh thinking

to business and talent decisions.It was unusual for the head of HR to

help select the next CEO, but to Tanner it made perfect sense. “That’s what HR is all about,” she said. “It’s about making sure that we have the right talent, with the right skills for the future, and there’s no more important job than the CEO.”

The pace of changeThe rapid pace of change in banking means that CEOs also have to foster a culture of continuous learning — while being continuous learners themselves.

Competition — from other banks, upstart financial technology firms, and even the likes of Google, Apple and Amazon — is only going to intensify and it’s on the CEO to make sure their companies are adapting to the shifting landscape and preparing their employ-ees for what’s next.

The most tangible way banks are adapting to this heightened competi-tion is through consolidation. Many banks are pursuing scale not only to gain access to more customers, but also to use savings from efficiency initiatives — closing overlapping branches and merging other duplica-tive functions — to invest heavily in the most cutting-edge technologies.

And as banks become larger and more complex, CEOs are prioritizing worker training, and retraining, along with leadership development. A case in point is BOK, which has made about a dozen acquisitions over the last 20 years but only recently added formal training programs designed to retain talent and prepare midlevel managers for senior roles.

Under Bradshaw, BOK has put in place an executive coaching program geared specifically toward up-and-coming managers who senior leaders view as having executive potential. It also offers an advanced leadership

program for midlevel managers, another management training program for newly hired or recently promoted employees and a series of online classes and one-day boot camps.

The investments are paying off in reduced turnover and in the number of jobs being filled by internal candidates. Before the initiatives were put in place, roughly 14% of vacant jobs went to existing employees, a figure that plainly disappointed Bradshaw. “I didn’t know what the right number was, but I knew it wasn’t that,” he said.

Today, that figure is closer to 30%.The $26 billion-asset Investors

Bancorp in Short Hills, N.J., has also ramped up its leadership and develop-ment programs as it has scaled up. Between 2008 and 2014, the company made seven acquisitions, more than quadrupling its size.

Investors Chairman and CEO Kevin Cummings said that in today’s chang-ing banking climate, top executives have to be hyperfocused on teaching others how to lead and be comfortable with making important decisions.

“People are being asked to do more things; the job they had last year is not the job that’s expected of them today and might not be the same job they are doing next year,” Cummings said. “We had people come here when it was a $10 billion bank. Do you think the manager of a $10 billion bank has the same responsibility as a $26 billion bank?”

Ray Davis, the longtime president and CEO of Umpqua Holdings in Portland, Ore., has said that a CEO’s primary job at a growing company is to support other leaders.

“I really see my job as head of support,” Davis, who retired in 2016, wrote in his 2007 book, “Leading for Growth: How Umpqua Bank Got Cool and Created a Culture of Greatness.”

“Because things are moving so quickly, I can’t assume that tools and

“MANAGING BY WALKING AROUND” IS “MORE IMPERATIVE TODAY,” SAYS KESSEL STELLING, OF SYNOVUS.

016_ABM_0519 16 4/12/19 5:59 PM


to business and talent decisions.It was unusual for the head of HR to

help select the next CEO, but to Tanner it made perfect sense. “That’s what HR is all about,” she said. “It’s about making sure that we have the right talent, with the right skills for the future, and there’s no more important job than the CEO.”

The pace of changeThe rapid pace of change in banking means that CEOs also have to foster a culture of continuous learning — while being continuous learners themselves.

Competition — from other banks, upstart financial technology firms, and even the likes of Google, Apple and Amazon — is only going to intensify and it’s on the CEO to make sure their companies are adapting to the shifting landscape and preparing their employ-ees for what’s next.

The most tangible way banks are adapting to this heightened competi-tion is through consolidation. Many banks are pursuing scale not only to gain access to more customers, but also to use savings from efficiency initiatives — closing overlapping branches and merging other duplica-tive functions — to invest heavily in the most cutting-edge technologies.

And as banks become larger and more complex, CEOs are prioritizing worker training, and retraining, along with leadership development. A case in point is BOK, which has made about a dozen acquisitions over the last 20 years but only recently added formal training programs designed to retain talent and prepare midlevel managers for senior roles.

Under Bradshaw, BOK has put in place an executive coaching program geared specifically toward up-and-coming managers who senior leaders view as having executive potential. It also offers an advanced leadership

program for midlevel managers, another management training program for newly hired or recently promoted employees and a series of online classes and one-day boot camps.

The investments are paying off in reduced turnover and in the number of jobs being filled by internal candidates. Before the initiatives were put in place, roughly 14% of vacant jobs went to existing employees, a figure that plainly disappointed Bradshaw. “I didn’t know what the right number was, but I knew it wasn’t that,” he said.

Today, that figure is closer to 30%.The $26 billion-asset Investors

Bancorp in Short Hills, N.J., has also ramped up its leadership and develop-ment programs as it has scaled up. Between 2008 and 2014, the company made seven acquisitions, more than quadrupling its size.

Investors Chairman and CEO Kevin Cummings said that in today’s chang-ing banking climate, top executives have to be hyperfocused on teaching others how to lead and be comfortable with making important decisions.

“People are being asked to do more things; the job they had last year is not the job that’s expected of them today and might not be the same job they are doing next year,” Cummings said. “We had people come here when it was a $10 billion bank. Do you think the manager of a $10 billion bank has the same responsibility as a $26 billion bank?”

Ray Davis, the longtime president and CEO of Umpqua Holdings in Portland, Ore., has said that a CEO’s primary job at a growing company is to support other leaders.

“I really see my job as head of support,” Davis, who retired in 2016, wrote in his 2007 book, “Leading for Growth: How Umpqua Bank Got Cool and Created a Culture of Greatness.”

“Because things are moving so quickly, I can’t assume that tools and

support that worked yesterday are sufficient today. I’m out there all the time asking, ‘What is it you need?’ It’s a constant. It’s the only way we can keep up with our growth.”

CEOs themselves also have to be continuous learners. Cummings, for example, was one of 90 managers at Investors who recently took part in a 10-week leadership course in which they studied how companies in other industries dealt with and resolved challenges.

WSFS’ Turner traveled the country for three months in 2016, visiting with companies across a wide range of industries to learn how they are innovating, preparing employees for change and enhancing culture. He kept the entire WSFS workforce updated on his findings through a weekly blog.

And Nandita Bakhshi, the president and CEO of the $87 billion-asset Bank of the West in San Francisco, actually mystery shops rival banks. She keeps multiple accounts at other banks and, every once in a while, she’ll visit their branches in jeans and a T-shirt just to check out their customer experience.

Corporate social responsibilityCEOs these days are more likely to take leadership roles on sensitive social and political issues — the kinds of

topics their predecessors had long avoided.

The pressure on CEOs to speak up is coming in part from employees but also from pension funds, hedge funds and other large investors. In January, the chairman and CEO of BlackRock — the world’s largest asset manager — called on his peers in banking and other industries to use their bully pulpits to solve problems that politi-cians won’t.

“Unnerved by fundamental econom-ic changes and the failure of govern-ment to provide lasting solutions, society is increasingly looking to companies, both public and private, to address pressing social and economic issues,” Larry Fink wrote in an open letter to CEOs. “The world needs your leadership.”

JPMorgan Chase’s chairman and CEO is taking the responsibility seriously. Jamie Dimon was among the most prominent business leaders to criticize President Trump for pulling the United States out of the Paris Agree-ment on climate change in June 2017. He also was quick to condemn the president for failing to call out racist groups for inciting violence at a rally in Charlottesville, Va., two months later.

“In the past, boards and advisors to boards have advised company CEOs to keep their head down and stay out of the line of fire,” Dimon wrote in his annual letter to shareholders in April. “Now the opposite may be true. If companies and CEOs do not get involved in public policy issues, making

Rosilyn Houston, chief talent and culture executive at BBVA Compass, says HR went “from an administrative function to a strategic function within the organization.”

017_ABM_0519 17 4/12/19 5:59 PM


progress on all these problems may be more difficult.”

As head of the nation’s largest bank, Dimon has pledged significant resourc-es to community development — JP-Morgan invested roughly $150 million in Detroit’s economic recovery — and to addressing income inequality. This includes funding a research institute that studies the root causes of the issue and, more recently, committing $350 million to fund worker training and job-placement programs nationwide.

Bob Rivers, the chairman and CEO of the $11.3 billion-asset Eastern Bank in Boston, also fully embraces the role of social change agent, arguing that advocacy is actually good for business. Rivers is something of an activist on gender and racial equality, and last year played a leading role in helping to defeat a referendum that would have removed certain protections for lesbian, gay, bisexual and transgender residents in Massachusetts. Eastern, which has long pledged 10% of its profits to charitable causes, also is committed to helping close the wealth gap in the state through its support for small, minority-owned businesses.

Rivers said it’s not a coincidence that Eastern has posted record profits for two years running.

“It’s hard to differentiate yourself in a crowded, competitive climate that’s filled with a lot of sameness,” but the bank’s advocacy has been a compel-ling differentiator in the marketplace, Rivers said. “People have told me, ‘I can bank anywhere, but I want to move my accounts to Eastern Bank because I want to support you.’ ”

Still, Eastern has the luxury of committing 10% of its net income to charitable causes because it’s a mutual thrift and isn’t under pressure to maximize returns to shareholders. CEOs of publicly traded banks have to be more measured in their advocacy

— and that’s evident in the mixed messages many are sending on issues around climate change.

The nation’s four largest banks, JPMorgan Chase, Bank of America, Wells Fargo and Citigroup, are all members of Ceres, a Boston nonprofit that works with companies to help reduce their overall impact on global warming and build sustainability into their business practices. Yet, according to a recent report from the Rainforest Action Network, those same four banks were the world’s largest financiers of fossil fuel exploration in 2018.

Wells Fargo also successfully blocked a recent shareholder proposal that would have required it to disclose the impact climate change is having on its investment portfolio.

Still, Ceres’ president and CEO, Mindy Lubber, said bank CEOs today are at least engaged on the issue of climate change, which is more than can be said of CEOs just a decade ago.

“When we would talk to CEOs 10 or 15 years ago about this, they’d say, ‘That’s a nice little thing … now go talk to our foundations people,’ ” Lubber said. “It was nowhere near being a board level or senior management level discussion then, but it is now.”

That’s because there is growing recognition that “being a corporate leader means stepping out and standing for values, not just the bottom line,” she said.

Lubber acknowledged that while the socially responsible investors she works with might want to end financing for deep water oil exploration, banks have other constituents to consider. “It’s not about getting every point right — we understand it’s a journey and it may take five or six years to get there,” Lubber said. “But it is about making sure a system is being put in place to assure integrity and progress. And the CEO has to be involved.”

Will it last?Of course, CEOs have in the past been known to “overindex on the shareholder piece of the equation,” as Fifth Third’s Tanner put it, so it’s questionable whether their current lofty mindset has staying power.

When the banking industry is less flush, other pressures could shift the emphasis from long-term strategy to short-term goals.

Said Finkelstein, the Dartmouth professor: “There is always a reason to be skeptical, because they have a long track record of behaving badly.”

Then again, times have changed. Some bank CEOs, Dimon among them, have been arguing against companies giving quarterly earnings guidance, precisely because, they say, it puts such an intense focus on short-term profits that it can lead to corporate misbehav-ior. Boards are far more professional than they were a decade ago — heavi-ly populated by CEOs and ex-CEOs with experience running companies — and won’t tolerate excessive risk-taking. Regulators are being more vigilant about making sure that banks’ policies and business practices align with their stated values. The last thing they want is another Wells Fargo phony-accounts scandal on their hands.

As Bank of the West’s Bakhshi sees it, the way CEOs are leading today is the new normal.

“I’ve worked at banks that had good cultures, but it was never as deliberate and as purposeful as it is now,” she said.

Besides, she asked, “Why wouldn’t you want to create a values-based culture? Why wouldn’t you want to do well for the environment? Why wouldn’t you want to make progress on gender equality? Why wouldn’t you want to bring the underserved into the fold of banking? It is our responsibility to be leaders of all of that.” □

018_ABM_0519 18 4/12/19 5:59 PM

Jennifer UpshawGroup Executive, Marketing

Synovus Bank, Member FDIC.

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

1-888-SYNOVUS | synovus.com

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

019_ABM0519 19 4/10/2019 3:29:07 PM


WELCOME TO OUR INAUGURAL NEXT LISTGet ready to meet 15 women — ages 40 and under — whose accomplishments and influence set them apart.

This extension of our Most Powerful Women in Banking program is meant to highlight high-achieving women in the leadership pipeline.

With the industry still struggling to improve the diversity in its top ranks, this list offers some insight into what the future holds — and some inspiration.

MOST POWERFUL WOMEN IN BANKING: NEXT

From left: Abigail Mrozinski of Wilmington Trust, Kristen Bitterly of Citigroup and Lian Duan of China Merchants Bank.

Photograph by Sasha Nialla Illustrations by Robert Carter

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Photograph by Sasha Nialla Illustrations by Robert Carter

021_ABM_0519 21 4/15/19 9:48 AM


Rachel Bryant specializes in risk management, and she applies that framework not only to her job duties, but also to her career path.

“I continually look to the future, which has led me to take calculated risks to move my career forward,” she said. “I was willing to move for the jobs I wanted.”

It’s hard to argue with what Bryant has accomplished by age 32. A graduate of Georgia Tech, she was in her mid-20s when she was hired as an examiner by the Federal Reserve Bank of Atlanta. She later moved to Charlotte, N.C., for a role as a team leader for the Federal Reserve Bank of Richmond.

In September 2015, Bryant joined Regions Bank, where she is now the head of market, liquidity, capital and strategic

financial risk management. She is a key player on the regulatory front, overseeing compliance with the Volcker Rule and the resolution planning process. She also has been working on the Birmingham, Ala., company’s transition away from the use of the London interbank offered rate as a bench-mark.

In addition, Bryant led a yearlong effort to improve the efficiency of Regions’ process for making stress-test submissions to the Federal Reserve.

“It is a lot,” Bryant acknowledged during a recent interview.From mid-2017 through last year, Bryant led an overhaul

of the bank’s market and liquidity risk division. The project has controlled expenses while also keeping Regions’ C-suite and its board of directors better informed about developing risks.

“There was real opportunity there to improve our mes-saging and impact,” Bryant said. — Kevin Wack

Nominating executive:MARTHA RABERManaging director for financial risk

Rachel BryantRegions Bank

Head of market, liquidity, capital and strategic financial risk management

Overhauling Citi Private Bank’s capital markets business in the Americas required finding someone who not only had expertise in that sector, but also had the ability to lead a team through a difficult change while growing revenue. The natural pick was Kristen Bitterly.

At the time she was in charge of investments in the pri-vate bank’s Eastern region, which was producing year-over-year growth approaching 50%.

She accepted the newly created role as head of capital markets in the Americas in March 2018 and went to work centralizing a business in which every region and product line was operating independently.

The new position had its challenges early on. “There’s always a moment where you go from being a producer and everyone’s peer and then you get promoted,” Bitterly said. “That’s one of the most difficult transitions.”

Bitterly developed a business plan that focused on diversifying revenue and reducing reliance on top clients.

She forged strong internal partnerships across both the technology and operations platforms. And she

redefined roles on the team and recruited top talent. The results include a satisfying spike in business, partic-ularly among the most sophisticated types of clients.

Bitterly also has set out to offer clients insight on less traditional topics. She recently identified a need for clients to better understand blockchain technology, and led two panels that aimed to de-mystify the concept for family office and advisory

board executives.Across the private bank more broadly, Bitterly is

working to increase diversity in the ranks. As a co-founder of Leadership 4 Tomorrow — a program meant to nurture rising talent in the company — she has helped diverse lead-

ers add management responsibilities. Her television appear-ances to discuss the markets are intended in part to show young women roles like hers are an option. — Rob Garver

Nominating executive: TRACEY WARSONHead of North America, Citi Private Bank

Kristen BitterlyCitigroup

Head of capital markets for the Americas, Citi Private Bank

“ Kristen has demonstrated her ability to simultaneously manage a business and serve clients.” —Tracey Warson

“ Rachel’s efforts have resulted in significantly strengthening and improving Regions’ ability to chart a prudent, sustainable and profitable course.” —Martha Raber

financial risk management. She is a key player on the regulatory front, overseeing compliance with the Volcker Rule and the resolution planning

the London interbank offered rate as a bench-

In addition, Bryant led a yearlong effort to improve the efficiency of Regions’ process

Many banks have a startup accelerator. But few can boast of being a startup shelter.

As part of the continuing rebuilding effort in Puerto Rico after Hurricane Maria, Banco Pop-ular’s nonprofit foundation has several startups working out of its main location in San Juan, taking advantage of the free Wi-Fi and desk space still available there.

“Especially after the hur-ricane, it became a safe ha-ven,” said Camille Burckhart, the chief information and dig-ital officer for parent compa-ny Popular and its bank unit. “People could actually work from our premises. And they are part of the community.”

For Burckhart, it is part of a mission to help the island get back to normal, in this case by letting grassroots entrepreneurs tap into her bank’s tech know-how.

“I’ve seen how many entrepreneurs have actually come back to the island, and how many young people have left companies to do super innovative stuff,” with lofty goals like restarting agriculture, Burckhart said.

“The sense of purpose is amazing. I’m a mentor for a few of them. They’re taking matters into their own hands, not waiting for the govern-ment to fix everything. That characterizes Puerto Ricans and makes me feel proud to be a Puerto Rican as well.”

Burckhart is involved in other efforts to support local entrepreneurs dedicated to the country’s welfare. There is

Camille BurckhartPopular Inc.

Chief information and digital officer

022_ABM_0519 22 4/12/19 6:33 PM


financial risk management. She is a key player on the regulatory front, overseeing compliance with the Volcker Rule and the resolution planning process. She also has been working on the Birmingham, Ala., company’s transition away from the use of the London interbank offered rate as a bench-mark.

In addition, Bryant led a yearlong effort to improve the efficiency of Regions’ process for making stress-test submissions to the Federal Reserve.

“It is a lot,” Bryant acknowledged during a recent interview.From mid-2017 through last year, Bryant led an overhaul

of the bank’s market and liquidity risk division. The project has controlled expenses while also keeping Regions’ C-suite and its board of directors better informed about developing risks.

“There was real opportunity there to improve our mes-saging and impact,” Bryant said. — Kevin Wack

Nominating executive:MARTHA RABERManaging director for financial risk

She forged strong internal partnerships across both the technology and operations platforms. And she

redefined roles on the team and recruited top talent. The results include a satisfying spike in business, partic-ularly among the most sophisticated types of clients.

Bitterly also has set out to offer clients insight on less traditional topics. She recently identified a need for clients to better understand blockchain technology, and led two panels that aimed to de-mystify the concept for family office and advisory

board executives.Across the private bank more broadly, Bitterly is

working to increase diversity in the ranks. As a co-founder of Leadership 4 Tomorrow — a program meant to nurture rising talent in the company — she has helped diverse lead-

ers add management responsibilities. Her television appear-ances to discuss the markets are intended in part to show young women roles like hers are an option. — Rob Garver

Nominating executive: TRACEY WARSONHead of North America, Citi Private Bank

“ Kristen has demonstrated her ability to simultaneously manage a business and serve clients.” —Tracey Warson

Many banks have a startup accelerator. But few can boast of being a startup shelter.

As part of the continuing rebuilding effort in Puerto Rico after Hurricane Maria, Banco Pop-ular’s nonprofit foundation has several startups working out of its main location in San Juan, taking advantage of the free Wi-Fi and desk space still available there.

“Especially after the hur-ricane, it became a safe ha-ven,” said Camille Burckhart, the chief information and dig-ital officer for parent compa-ny Popular and its bank unit. “People could actually work from our premises. And they are part of the community.”

For Burckhart, it is part of a mission to help the island get back to normal, in this case by letting grassroots entrepreneurs tap into her bank’s tech know-how.

“I’ve seen how many entrepreneurs have actually come back to the island, and how many young people have left companies to do super innovative stuff,” with lofty goals like restarting agriculture, Burckhart said.

“The sense of purpose is amazing. I’m a mentor for a few of them. They’re taking matters into their own hands, not waiting for the govern-ment to fix everything. That characterizes Puerto Ricans and makes me feel proud to be a Puerto Rican as well.”

Burckhart is involved in other efforts to support local entrepreneurs dedicated to the country’s welfare. There is

Startup Popular, which offers credit to new businesses as well as mentoring. She is part of Parallel18, a countrywide startup incubator, and she mentors fledgling firms in the local chapter of the Endeavor network.

Tech has a crucial role in helping Puerto Rico recover, she said, and that aid ex-tends even to the unbanked.

A program launched last year allows a bank customer to delegate withdrawals from an ATM to someone else who doesn’t have a bank account. Some island residents don’t hold enough money to justify a bank account, Burckhart explained.

She has championed ideas like the one for the ATM withdrawals as part of the crisis recovery.

“Going through an emer-gency like that, it gives you a sense of purpose that not many bank tech people get,” she said. — Suleman Din

Nominating executive: TERUCA RULLAN ALVAREZChief communications officer

What she said:“Her fortitude and tremen-dous commitment enabled us to help our customers and communities during our re-covery time and continues to propel our innovation further devising new ways to solve real-life problems.”

Camille BurckhartPopular Inc.

Chief information and digital officer Chantel Chase knows the

value of efficiency, and her many ventures at Zions Bancorp. have depended on it.

When the company launched its business banking resurgence project two years ago, Chase was selected to join the senior leadership team, with responsibility for the appli-cation processing and loan closing functions.

The goal was to improve the customer experience across the enterprise — not just incrementally, but to “best in class,” Chase said.

The project involved combin-ing three satellite processing centers into one location at Zions’ Business Banking Loan Center, streamlin-

ing the loan process, and eliminating confusing and often differing application instructions.

“We created a simpli-fied way for a relationship manager in the field to submit a loan to our center, so instead of them having to know all the ins and outs of our system, they just

have a minimal piece that they do up front,” she said. “So when it comes into us, my team will grab it.”

The loan closers on her team prepare a list of items needed and then work with everyone involved — from appraisers to title compa-nies — to collect each item within a target time frame.

Chase also played a role in the 2017 launch of a product Zions calls Business Access, which has reduced processing time on Small Business Administration loans from several weeks to as little as four hours and led to a dramatic increase in the number of applica-tions. “It’s had a positive impact on the client, on the banker experience, and re-ally changed the way that business banking is done at our company,” Chase said. “It’s definitely created a better experience.”

— Hannah Lang

Nominating executive:LORI CHILLINGWORTHDirector of business banking

Chantel ChaseZions Bancorp.

Business banking operations division manager

Chantel is an innovator and a collaborator. Her energy and can-do attitude, along with big-picture thinking, make her a force to be reckoned with.” —Lori Chillingworth

023_ABM_0519 23 4/12/19 6:33 PM


Member FDIC

Uma Wilson

Inspire. Motivate. Innovate.

Congratulations to Umaand all the NEXT! Top Women in Banking honorees. Your innovation, strength and courage motivate us to achieve and deliver more for our customers, associates and communities.

UMB.com

Lian Duan is easy to spot among her peers.

“If you gathered the U.S.-based senior counsels of the major Chinese banks operating in the United States, the group would contain mostly veterans who served at high levels in government supervisory agencies such as the Federal Reserve,” said Joseph Loffredo, assistant general man-ager and chief financial officer at the New York branch of China Merchants Bank Co. “But among this distin-guished group, you’d find one outlier, a lady about half the age of most of the others.”

Even so, Duan notes that her unique background has prepared her well for the role.

She joined the bank in 2012, after four years working as a legal counsel for a Chinese insurance company. Fluent in English and Mandarin, Duan is able to serve as a key facilitator between the bank’s $10 billion-asset New York branch and the headquarters in Shenzhen, China.

In this capacity, she’s helped guide the parent company, China Merchants Group, through several important initiatives in recent years.

This includes getting Federal Reserve approval to become a bank holding company and obtaining authorization from the New York State Department of Financial Services to offer investment advisory services to high-net-worth clients.

“I did a lot of work in transferring information from the branch to the head office to get them more accus-tomed to what we are experiencing in the U.S.,” said Duan, who was the first in-house counsel hired at the branch and now has three others on her staff.

“That’s the key for a company operating in several jurisdictions.” —Victoria Finkle

Nominating executive: JOSEPH LOFFREDOAssistant general manager and chief financial officer

What he said:“Ms. Duan has gained the respect and confidence of her colleagues and counterparts in the foreign banking community with her strong reasoning power, capacity and willingness to work, enthusiasm to learn about new products and issues, ability to manage a professional staff, and unfailingly pleasant demeanor.”

LianDuanChina Merchants Bank Co., New York Branch

Deputy head of legal and compliance

April Frazer describes herself, forthrightly, as a very driven person. Which may explain how she became global head of banks at Wells Fargo before her 37th birthday.

The job title was a new one when Frazer was appointed in October 2017. She was asked to lead a team of more than 50 people inside the financial institutions group, which works with banking clients worldwide.

Shortly after being named to the position, Frazer created a consult-ing team that offers insight not only to clients but also within the San Francisco bank itself. As interest rates rose in 2018, the team provided guidance on the deposit funding strate-

gies banks should adopt.“They’re very much instru-

mental in trying to help our clients think through these key dynamics that are impacting our industry right now,” Frazer said during a recent interview.

In keeping with this broad-er approach to the work, her role was expanded in March — beyond just the financial institutions group, to the larger corporate and investment banking unit.

This type of work was a logical next step for Frazer,

who was still in her early 20s when she joined Wachovia’s investment banking group.

Early in her career, Frazer spent several years working in Wachovia’s debt capital markets unit, where her work provided a front-row seat to

the financial crisis.Amid the subsequent wave

of new regulations, Frazer remade herself as an expert in how the revamped rules would impact markets. “The team that I was working on,” she recalled, “went through all of the details of everything that came out from the regulators.”

That fine-grained work was used not only inside of Wells Fargo, which acquired Wacho-via in 2008, but also offered to banks globally that were trying to get a handle on issues like stress testing and resolution planning. “I’ve had a dynamic career,” Frazer said, adding that her goal is to continue to grow. — Kevin Wack

. Nominating executive: LISA MCGEOUGHCo-head of the corporate and investment banking unit

April FrazerWells Fargo

Head of banks for the corporate and investment banking unit

Emily GirschLincoln Savings Bank

Chief financial officer

Innovation is part of Emily Girsch’s daily routine.That’s why the chief financial officer at Lincoln Savings

Bank in Cedar Falls, Iowa, spends a lot of time thinking about the need to modernize bank regulations for the digital age.

“Most bankers want to follow the rules, but sometimes the rules need to change with the times,” said Girsch.

One of her responsibilities at Lincoln Savings is locking in new fintech partner-ships. The $1.3 billion-asset bank has added 1.5 million customers in five years through the partnerships it has with fintechs like Square, Acorns, MoneyLion and Qapital.

Lincoln Savings gets a deposit boost from these partner-ships by being the bank of record for accounts opened on their mobile apps.

Last year Girsch also oversaw a capital-raising effort — which was necessary because of fast loan growth. Loans increased more than 18% in 2017 and nearly 12% last year, to $987 million at Dec. 31, Girsch said.

April is thoughtful, strategic, prepared, and knows how to focus on the activities that will make an impact to drive the business forward.” —Lisa McGeough

024_ABM_0519 24 4/12/19 6:33 PM


Member FDIC

Uma Wilson

Inspire. Motivate. Innovate.

Congratulations to Umaand all the NEXT! Top Women in Banking honorees. Your innovation, strength and courage motivate us to achieve and deliver more for our customers, associates and communities.

UMB.com

who was still in her early 20s when she joined Wachovia’s investment banking group.

Early in her career, Frazer spent several years working in Wachovia’s debt capital markets unit, where her work provided a front-row seat to

the financial crisis.Amid the subsequent wave

of new regulations, Frazer remade herself as an expert in how the revamped rules would impact markets. “The team that I was working on,” she recalled, “went through all of the details of everything that came out from the regulators.”

That fine-grained work was used not only inside of Wells Fargo, which acquired Wacho-via in 2008, but also offered to banks globally that were trying to get a handle on issues like stress testing and resolution planning. “I’ve had a dynamic career,” Frazer said, adding that her goal is to continue to grow. — Kevin Wack

. Nominating executive: LISA MCGEOUGHCo-head of the corporate and investment banking unit

April FrazerWells Fargo

Head of banks for the corporate and investment banking unit

Emily GirschLincoln Savings Bank

Chief financial officer

Innovation is part of Emily Girsch’s daily routine.That’s why the chief financial officer at Lincoln Savings

Bank in Cedar Falls, Iowa, spends a lot of time thinking about the need to modernize bank regulations for the digital age.

“Most bankers want to follow the rules, but sometimes the rules need to change with the times,” said Girsch.

One of her responsibilities at Lincoln Savings is locking in new fintech partner-ships. The $1.3 billion-asset bank has added 1.5 million customers in five years through the partnerships it has with fintechs like Square, Acorns, MoneyLion and Qapital.

Lincoln Savings gets a deposit boost from these partner-ships by being the bank of record for accounts opened on their mobile apps.

Last year Girsch also oversaw a capital-raising effort — which was necessary because of fast loan growth. Loans increased more than 18% in 2017 and nearly 12% last year, to $987 million at Dec. 31, Girsch said.

The bank initially closed its private common stock offering with $15 million.

But when Girsch learned of interest from two institu-tional investors in California, she flew out to meet with them in person.

She ended up raising $30 million — a feat President and Chief Executive Erik Skovgard said will enable Lincoln Savings “to continue

to prosper and grow well into the future.”

A total of 90 investors participated, including the two institutional investors, Castle Creek Capital and EJF Capital.

After joining Lincoln Savings in 2002 from an accounting firm, Girsch, 40, moved up the ranks to the C-suite in just four years. She has been the CFO since her mid-20s.

— Hilary Burns

Nominating executive: ERIK SKOVGARDPresident and chief executive

“ Emily has a strong presence, in the boardroom, mentoring others and serving in the community.” —Erik Skovgard

025_ABM_0519 25 4/12/19 6:33 PM


Lindsay LawrenceFirst Foundation Bank

Chief operating officer

Give Lindsay Lawrence a big job to do and she just might find a way to make it even bigger.

Over the past few years, First Foundation Bank in Irvine, Calif., has acquired two banks, one of which had two core systems. So Lawrence ended up overseeing three core con-versions last year.

But, recognizing an opportunity to go beyond the task of unifying platforms, she also created an enterprise delivery

services team to work with the core delivery team. They were tasked with helping the $5.5 billion-asset bank enhance its own system, in part so it can better leverage data.

“We’re building out a data warehouse so that all of the information from all of these various systems can be housed together, so we can really get a true picture of who our clients are,” she said.

David DePillo, the bank’s presi-dent, described the initiatives Lawrence undertook as “extremely impactful” for the bottom line. “But, perhaps the more impactful component was her ability to lead these teams through such tre-mendous change, especially over the course of a year, and still have her teams smiling and motivated,” he said.

Lawrence is pleased with the results too. “I really feel like we’ve been able to make a change and do something unique, and I’ve kind of been able to put my fingerprint on it, which is pretty cool,” she said.

Lawrence is just as proud of her family life, and wants other women in the industry to know that balancing respon-sibilities as a mother and as a business executive is possible. She has two children, Addison, 7, and Grayson, 5.

— Hannah Lang

Nominating executive:DAVID DEPILLOPresident

For Jacqueline Howard, Ally Finan-cial’s focus on the issue of eco-nomic mobility is personal.

Her interest in helping close the wealth gap — a 2016 Federal Reserve study showed the median net worth for black families is about 10% that of white families — prompted her to steer Ally toward a more concerted effort on this front.

“We have a responsibility in banking to drive money mindfulness and help people understand their finances,” she said.

As senior director of corporate citizenship, Howard, who is African-American, has created a strategy for the Detroit company around helping underserved consumers build wealth, through financial literacy efforts, charitable giving and volunteerism. And she has tied these efforts together in a more holistic corporate social responsibility program.

Ally’s partnership with the Thurgood Marshall College Fund and entertainer Sean “Big Sean” Anderson is one recent highlight. Through the Moguls in the Making compe-tition in March, 50 students from historically black colleges

participated in a weeklong challenge, where they de-vised and pitched business plans to a panel of judges.

Winning teams received prizes and a chance to intern at Ally, with the latter meant to expose diverse young people to banking careers.

Ally’s shift away from “checkbook philanthropy” to a more thoughtful approach entailed getting other

areas of the company involved, from investor rela-tions to marketing. “We are looking at it less of just being philanthropic with giving grants and volun-teering, because it is so much bigger than that,”

she said. “Investors and customers are demanding it.”In addition to her professional accomplishments,

Howard, 38, serves as an inspiration on a personal level. She is open about her own life challenges, including losing her mother at age 12 and being diagnosed with breast cancer at age 30. “Having survived that, it took away a lot of my fear,” Howard said. “I am willing to go after what I want, success or failure.” — Jackie Stewart

Nominating executive: ALISON SUMMERVILLEBusiness administration executive

What she said:“Jacqueline is an enterprise thinker who coordinates cross-functional working groups. She seamlessly works across the company with employees at all levels.”

Jacqueline HowardAlly Financial

Senior director, corporate citizenship

“ She picks up processes and information swiftly and is not afraid to confront people who may have a much more seasoned tenure.” —David DePillo

David DePillo, the bank’s presi-dent, described the initiatives

impactful component was her ability to lead these teams through such tre-mendous change, especially over the course of a year, and still have her teams smiling and motivated,” he

Lawrence is pleased with the results too. “I really feel like we’ve been able to make a change and do something

Whenever a bankintroduces new tech-nology as a conve-nience for customers, it must deal with an inevitable reality: enterprising thieves.

Take cardless ATMs as an example.

This feature allows a customer to withdraw cash from an ATM using just their smartphone. But some

criminals have figured out how to use phished account credentials to add a new phone number and then siphon off cash.

This is just one of the problems Fifth Third Ban-corp deals with in its new high-tech war room, which it calls the cyber fusion center.

As chief operational risk officer, Carrie Lichter played a key role in bring-ing the center to life.

It began when Lichter and her team started up-dating the Cincinnati bank’s overall risk management practices. Cyber risk was top of mind, and in thinking about how the bank could

Carrie Lichter Fifth Third Bancorp

Chief operational risk officer

She has substan-tially enhanced our operational risk programs, focusing on driving front line accountability and strengthening second line oversight and challenge.” —Frank Forrest

026_ABM_0519 26 4/12/19 6:34 PM


David DePillo, the bank’s presi-dent, described the initiatives Lawrence undertook as “extremely impactful” for the bottom line. “But, perhaps the more impactful component was her ability to lead these teams through such tre-mendous change, especially over the course of a year, and still have her teams smiling and motivated,” he said.

Lawrence is pleased with the results too. “I really feel like we’ve been able to make a change and do something unique, and I’ve kind of been able to put my fingerprint on it, which is pretty cool,” she said.

Lawrence is just as proud of her family life, and wants other women in the industry to know that balancing respon-sibilities as a mother and as a business executive is possible. She has two children, Addison, 7, and Grayson, 5.

— Hannah Lang

Nominating executive:DAVID DEPILLOPresident

participated in a weeklong challenge, where they de-vised and pitched business plans to a panel of judges.

Winning teams received prizes and a chance to intern at Ally, with the latter meant to expose diverse young people to banking careers.

Ally’s shift away from “checkbook philanthropy” to a more thoughtful approach entailed getting other

areas of the company involved, from investor rela-tions to marketing. “We are looking at it less of just being philanthropic with giving grants and volun-teering, because it is so much bigger than that,”

she said. “Investors and customers are demanding it.”In addition to her professional accomplishments,

Howard, 38, serves as an inspiration on a personal level. She is open about her own life challenges, including losing her mother at age 12 and being diagnosed with breast cancer at age 30. “Having survived that, it took away a lot of my fear,” Howard said. “I am willing to go after what I want, success or failure.” — Jackie Stewart

Nominating executive: ALISON SUMMERVILLEBusiness administration executive

What she said:“Jacqueline is an enterprise thinker who coordinates cross-functional working groups. She seamlessly works across the company with employees at all levels.”

Whenever a bankintroduces new tech-nology as a conve-nience for customers, it must deal with an inevitable reality: enterprising thieves.

Take cardless ATMs as an example.

This feature allows a customer to withdraw cash from an ATM using just their smartphone. But some

criminals have figured out how to use phished account credentials to add a new phone number and then siphon off cash.

This is just one of the problems Fifth Third Ban-corp deals with in its new high-tech war room, which it calls the cyber fusion center.

As chief operational risk officer, Carrie Lichter played a key role in bring-ing the center to life.

It began when Lichter and her team started up-dating the Cincinnati bank’s overall risk management practices. Cyber risk was top of mind, and in thinking about how the bank could

better manage this risk, she knew that collaboration across different teams was essential. But how to make that happen in a seamless way?

“The cyber fusion center is a place for those teams to come together and understand if it’s happening in one channel or multiple channels, collaborate on stopping that, and also ensure that it’s mitigated across multiple channels,” she said. “That collabora-tion is key.”

In the case of cardless ATM fraud, the information security team identifies the phishing activity happening online, while the fraud team roots out illicit transactions on a customer’s account. They then communicate with the bank protection team, which works with law enforcement to coordinate an arrest.

The cyber fusion center facilitates a speedier response by allowing all of those teams to do their part in the same room. It’s also a place where Fifth Third’s tech teams can monitor worldwide cyber threats in real time and participate in training scenarios to stay sharp. — Laura Alix

. Nominating executive: FRANK FORRESTChief risk officer

Carrie Lichter Fifth Third Bancorp

Chief operational risk officer

While working in the global trade finance department at Sumitomo Mitsui Bank-ing Corp., Erika Marquez found herself continually puzzled by how the bank was pricing particular transactions.

Bringing a background as a credit officer to her new role as a specialist in export credit agency products, she felt sure that the bank’s internal pricing model was overestimating the risk of loans backed by government guarantees.

Marquez took the initiative to dig into the pricing model and discovered an anomaly that was causing the bank to treat the loans as though they required significantly more reg-ulatory capital than they actually did.

With the support of her manager, Marquez shared what she discovered with various bank departments that had a stake in the issue. She went on to devel-op a proposal to formally review the pricing model and its impact on the bank’s performance, and to formulate a solution.

Marquez was given a leadership role in the effort, and formed a team of stakeholders from across the bank that worked over a 12-month period to find a new approach. The result was a revised pricing model that allows the bank to offer better terms on government-guaranteed loans without significantly increasing risk.

“Erika is particularly adept at working across

teams and across levels,” as evidenced by her success with the pricing initiative, said Hiromitsu Yoshizawa, the head of global trade finance for the Americas.

Senior management expects the new pricing

model not only to make the bank more competitive in the market for export credit agency financing, but also to have an even broader impact. The model will apply to other products the bank offers, outside of the global trade finance department, with the ex-pectation of more business opportunities and increased profitability. — Rob Garver

Nominating executive:HIROMITSU YOSHIZAWAHead of global trade finance for the Americas

What he said:“Erika has the rare ability to excel at both business development and implementation.”

Erika MarquezSumitomo Mitsui Banking Corp.

Vice president in the global trade finance department

She has substan-tially enhanced our operational risk programs, focusing on driving front line accountability and strengthening second line oversight and challenge.” —Frank Forrest

027_ABM_0519 27 4/12/19 6:34 PM


Abigail Mrozinski Wilmington Trust

Segment chief financial officer Synovus converted all 26

of its separately brand-ed community banks to its own name over the past two years — a major undertaking that allowed Jennifer Upshaw to shine.

Upshaw, who was director of retail banking when the planning start-ed in 2016, had become senior director of marketing by the time the transition wrapped up last year, a reflection of her leadership on what Synovus describes as one of the most important initiatives in its130-year history.

“The process involved literally thousands of issues to address, problems to solve, and tasks to be carefully timed and coordi-nated,” said Liz Wolverton, chief strategy and custom-er experience officer. But, despite those challenges, “the process was as close to flawless as any the compa-ny has ever implemented.”

Upshaw attributes the success to her ability to de-velop relationships across all parts of the Columbus, Ga., company.

One of her major tasks was managing the impact of the changes on employ-ees and customers alike.

“Several of our local banks were more than 100 years old and all had deep-ly rooted, emotional ties with communities, custom-ers and team members,” she said, leading to “dis-tinctive” but “not necessar-ily coordinated” operating procedures.

“The only way to get

consensus — on both the benefits of the transition and the execution timeline — was to take the time to connect with our market leaders and team mem-

bers,” she said.Ever since she joined

Synovus fresh out of college in 2003, Upshaw has been asked frequently to play roles on large corporate initiatives. She often has been the most junior person in the room participating in otherwise highly senior efforts, Wolverton said.

But as much as Upshaw has contributed already, Wolverton said she believes the best is yet to come.

— Tori Finkle

Nominating executive: LIZ WOLVERTONChief strategy and customer experience officer

What she said:“ While Jennifer would be the first to credit the full team for the brand conversion success, great teams are only as effective as the leaders they’re willing to follow.”

Jennifer UpshawSynovus

Senior director, marketing

Rana YaredGoldman Sachs

Partner and managing director, principal strategic investments team

The investments that Rana Yared’s team makes in startups help Goldman Sachs in two ways: Besides earning a profit, the company also uses a lot of the technology the startups develop as part of its internal digital transformation.

One example of this dual benefit is Kensho, a developer of artificial intelligence for financial analysis. Goldman was an early investor in the company, which was recently bought by

S&P Global for more than $550 million. Goldman uses Kensho’s technology in its equities division.

Another example is the electronic trading venue Tradeweb, which declared its intention to go public.

“I wouldn’t mention it if I didn’t think that we do well off of it,” Yared said of the pending IPO.

UMB Bank’s commercial cards division was losing clients in 2016, when Uma Wilson set out to turn things around.

Wilson recognized that the bank’s card products had fallen behind the times in terms of user experience.

After earning buy-in from top management — “Uma’s pitch was one of the most memorable I’ve experienced,” said UMB President and Chief Executive Jim Rine — she launched a pro-gram to overhaul the card offerings. She introduced new options such as virtual cards and Automated Clearing House processing

Uma Wilson UMB Bank

Director of product management

“ Uma is a true leader. Her team approach is one of the many reasons the bank product department is so successful.” —Jim Rine

“ Rana is, and has always been, on an accelerated track at Goldman Sachs, driven by her tireless work ethic, deep functional skills, and a strong commercial intuition.” —Stephanie Cohen

When M&T Bank was acquiring Wilming-ton Trust in 2011, it tapped into Abigail Mrozinski’s deep understanding of its newly added wealth business to help the merger go smoothly.

Though barely into her 30s at the time, Mrozinski spearheaded the integration of the wealth and institutional services division into M&T’s larger banking operations.

Her role as the director of corporate analysis kept her in regular contact with M&T’s top executives as they navigat-ed the risk assessment phase of the merger, with Mrozinski giving strategic recommendations and participating in long-term planning.

In the years that followed, the groundwork that Mrozinski helped lay proved crucial to the success of the combined institution.

The $350 million acquisition allowed M&T to supple-ment its already strong commercial and retail banking

products with a full suite of wealth and institutional client services.

Mrozinski went on to play a key role in Wilmington Trust’s management of the General Motors liquidation trust, one of the largest transactions in its history.

She helped negotiate with the Treasury Department and the Securities and Exchange Commission to get per-mission for Wilmington Trust to establish publicly traded units of the liquidating trust — the first time that authority had ever been approved for such an entity.

Her performance during the GM deal led to her being recruited to become chief financial officer of the wealth and institutional services division, which she has helped grow into the third-largest business within M&T.

The division has had a compound annual growth rate of 20% for the years since 2012, with revenue now approach-ing $900 million a year. — Rob Garver

. Nominating executive: BILL FARRELLExecutive vice president for institutional client services

“ While extremely detail-oriented, Abby never loses sight of the bigger strategic picture, which is critical when working on complicated transactions.” —Bill Farrell

028_ABM_0519 28 4/12/19 6:34 PM


consensus — on both the benefits of the transition and the execution timeline — was to take the time to connect with our market leaders and team mem-

bers,” she said.Ever since she joined

Synovus fresh out of college in 2003, Upshaw has been asked frequently to play roles on large corporate initiatives. She often has been the most junior person in the room participating in otherwise highly senior efforts, Wolverton said.

But as much as Upshaw has contributed already, Wolverton said she believes the best is yet to come.

— Tori Finkle

Nominating executive: LIZ WOLVERTONChief strategy and customer experience officer

What she said:“ While Jennifer would be the first to credit the full team for the brand conversion success, great teams are only as effective as the leaders they’re willing to follow.”

Jennifer UpshawSynovus

Senior director, marketing

Rana YaredGoldman Sachs

Partner and managing director, principal strategic investments team

The investments that Rana Yared’s team makes in startups help Goldman Sachs in two ways: Besides earning a profit, the company also uses a lot of the technology the startups develop as part of its internal digital transformation.

One example of this dual benefit is Kensho, a developer of artificial intelligence for financial analysis. Goldman was an early investor in the company, which was recently bought by

S&P Global for more than $550 million. Goldman uses Kensho’s technology in its equities division.

Another example is the electronic trading venue Tradeweb, which declared its intention to go public.

“I wouldn’t mention it if I didn’t think that we do well off of it,” Yared said of the pending IPO.

Two U.K. investments — Nutmeg, a robo-adviser, and Bud, a combination of a personal financial man-ager and open banking marketplace — will be important to Goldman as it builds its consumer bank in that country, Yared said.

Others include NYSHEX (it’s digitizing the con-tainerized freight industry to provide certainty and collateral to shippers and carriers), Veem (payments tech) and NAV (credit education for small businesses).

“Fintech investing is core to our business,” Yared said, adding that Goldman has been involved in it for 20 years.

And even though she works for a very large bank, Yared said she always thinks of the little guy. “It’s easy to forget that the whole industry is to the benefit of individuals — pensioners, main street people,” she said. “We’re very passionate about keeping that in mind as we invest.” — Penny Crosman

Nominating executive:STEPHANIE COHENChief strategy officer

UMB Bank’s commercial cards division was losing clients in 2016, when Uma Wilson set out to turn things around.

Wilson recognized that the bank’s card products had fallen behind the times in terms of user experience.

After earning buy-in from top management — “Uma’s pitch was one of the most memorable I’ve experienced,” said UMB President and Chief Executive Jim Rine — she launched a pro-gram to overhaul the card offerings. She introduced new options such as virtual cards and Automated Clearing House processing

and made other changes that put a premi-um on simplicity and efficiency.

The system she put in place is scalable, making it attractive to both large customers

and smaller ones looking to grow their business. Even without the benefit of a large bank’s

research and development operation, Wilson was able to look beyond the “off-the-shelf” solutions that

other banks UMB’s size often rely on. The result is that UMB is now able to tailor

its offerings to individual clients, some of which were unable to find the kind of options they

wanted at competing banks.UMB recently onboarded an insurance firm,

which signed up for just this reason. The bank also recently launched a cobranding deal with the Texas Rangers.

Over the past two years, Wilson’s strategy took a program that had been losing customers on a year-over-year basis and transformed it into the fastest-growing issuer of Visa cards in the region. — Rob Garver

Nominating executive: JIM RINEPresident and chief executive

Uma Wilson UMB Bank

Director of product management

“ Uma is a true leader. Her team approach is one of the many reasons the bank product department is so successful.” —Jim Rine

“ Rana is, and has always been, on an accelerated track at Goldman Sachs, driven by her tireless work ethic, deep functional skills, and a strong commercial intuition.” —Stephanie Cohen

Two U.K. investments — Nutmeg, a robo-adviser, and Bud, a combination of a personal financial man-ager and open banking marketplace — will be important to Goldman as it builds its consumer

Others include NYSHEX

tainerized freight industry to provide certainty and collateral to shippers and carriers), Veem (payments tech) and NAV (credit education

029_ABM_0519 29 4/12/19 6:34 PM

Index of AdvertisersAdvertising Contacts

PUBLISHER

WESTSARA CULLEY173 Spreading Oak DriveScotts Valley, CA 95066Tel: 831.212.2963Fax: [email protected]

MIDATLANTIC/ SOUTHEASTDAVID CLEWORTH1160 St. Pauls Parrish LaneJohns Island, SC 29455Tel: 843.640.3713Fax: [email protected]

NY/NJ/CT/PA/ MA/RI/NH/VT/MEBRAD BAVAOne State Street PlazaNew York, NY 10004Tel: 212.803.8829Fax: [email protected]

MIDWEST/SOUTHWESTSHELLY SCHMELINGOne State Street PlazaNew York, NY 10004Tel: [email protected]

CLASSIFIED ADVERTISINGDAVID CLEWORTHOne State Street PlazaNew York, NY 10004Tel: [email protected]

CUSTOMER SERVICE SOURCEMEDIA One State Street PlazaNew York, NY 10004Tel: 800.221.1809Fax: [email protected]

SERVICEDIGITAL ACCOUNT SERVICESANITA DAROUIOne State Street PlazaNew York, NY 10004Tel: [email protected]

COMPANY PHONE PAGEWEBSITE

COINSTAR, LLC C2 Coinstar.com/f inancial_institutions

FIDELITY INVESTMENTS 877-262-5950 3 go.fidelity.com/transformnow

ALLY FINANCIAL 7

SYNOVUS 1-888-SYNOVUS 19

synovus.com

UMB BANK 25

UMB.com

FIFTH THIRD BANK C3

ZENMONICS INC C4

www.zenmonics.com

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BackPorch

Mastercard CEO, on what criminals are saying about the prospect of an ever-more-connected future

TED ROSSMAN “Frankly, I’m underwhelmed.”Analyst at CreditCards.com, saying Apple’s new rewards credit card is no better than what already exists

TROELS BJERG “It has moved from being on the janitor’s agenda to the CEO’s agenda.” Chief operating officer at ISS, a facility services provider to Europe’s biggest banks, saying competition for millennial talent is putting heavy emphasis on workplace ambiance

KELLY KING“We face a fundamen-tal choice — disrupt our business or be disrupted.”Chairman and CEO of BB&T, attributing its proposed merger with SunTrust to the urgent need for digital transformation

AJAY BANGA

“Boy, good times are coming.”

GREG MANKIW“He does not have the intellectual gravitas for this important job.” Chair of White House Council of Economic Advisers under George W. Bush, urging the Senate to block Stephen Moore’s appoint-ment to the Federal Reserve

JOACIM OLSSON“I unfortunately get the feeling that the bank’s management is trying to hide dark facts rather than doing what is in its power to bring clarity and calm to the market.” Swedish Shareholders’ Association CEO, after the embattled Swedbank released a heavily redacted report on its alleged money laundering

BLO

OM

BER

G N

EWS

TIM SLOAN“I could not keep myself in a position where I was becoming a distraction.” Embattled Wells Fargo CEO, announcing his resignation

ELIZABETH WARREN“About damn time.”U.S. senator, D-Mass., tweeting about Sloan’s resignation

REP. RASHIDA TLAIB“What does a credit score say about the person’s driving history or their potential for accidents?”First-term Democrat on the House Financial Services Committee, proposing a ban on using credit scores to set auto insurance rates

DAVE MCKAY“They are getting between us and the moments of truth of our customers.”Royal Bank of Canada CEO, fretting about tech giants as a competitive threat particularly as more people turn to them when shopping for financial servicesSTEVE EISMAN

“This is not ‘The Big Short: Canada’ — I’m not calling for a housing collapse.”Neuberger Berman portfolio manager made famous by “The Big Short,” on his view of how a tottering Canadian housing market will impact banks there

032_ABM0519 32 4/9/2019 3:45:56 PM

Member FDIC.

Fifth Third would like to congratulate all of this year's honorees for American Banker's Most Powerful

Women in Banking NEXT list, including our own, Carrie Lichter.

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

Carrie Lichter Chief Operational Risk O�cer

0C3_ABM0519 3 4/10/2019 3:29:03 PM

0C4_ABM0519 4 4/10/2019 3:29:04 PM

may 2019 | americanbanker.com the rise of the the …...jacqueline howard, ally 26 lindsay lawrence,...

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