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Dear Members,
As I sit down to write my last President’s
letter, I look back proudly on the number of accomplishments
our talented and hardworking board has made over the past
“transitional” year.
First, I would like to thank Cheryl Dahut
and Nicki Persons for “accelerating” their positions on the
board as 1st and 2nd Vice President. They were invaluable
support to me as Chapter President.
Next, I would like to congratulate Kathy
King for her extraordinary efforts as Chair of the Host Committee
for the Annual Risk Management Conference, held in Baltimore
this year. As a result, our Chapter had one of the most successful
turnouts!
Additionally, I would like to express my
appreciation to Charles Ruch for his success in revitalizing
the Young Financial Professional Program as well as the Annual
Paper Writing Contest, and mentoring several individuals who
will hopefully assume future board positions.
Kudos to our new service administrators, Peggy Hoffman and
Peter Houstle, of Mariner Management, for all their support
this year. One of their achievements was moving our Chapter
into the next level of technology by improving Chapter communications
to all members via E-mail capability and weekly updates.
Lastly, I want to thank all of our board members without whom
we could not have accomplished as much as we did this year
without the enthusiasm and incomparable support of this team.
It was a privilege to serve as the Chapter President and I
look forward to actively supporting our new board.
Thanks again for your continued support!
Jo Taylor, CCRMA President
Sr.Vice President
1st Mariner Bank
P.S. Jo will continue as the Chesapeake
Clips’ editor. Email news and story ideas to her at
editor@rmachesapeake.org.
Click here
for a complete list of board contacts.
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CCRMA closes this program year with two July events: Young
Financial Professionals networking social on July 14 and RMA’s
Lending Academy July 26-30 (see accompanying story).
The Chapter is pleased to join the MD Association of CPAs
Young/New Professionals Network in a second networking event
on July 14 from 5:30 - 8:30 p.m. at McCormick & Schmick's
in Baltimore. Cash bar at happy hour prices plus munchies.
It’s a great opportunity to network with your colleagues
and other professionals. So, if you are a young financial
professional, plan to join us. Or if you know or work with
one, then pass this invitation along. Register online at www.rmachesapeake.org/events.html,
by phone 301-725-3540 or by fax 301-725-5323 (no cancellations
or refunds after July 12).
For a complete listing of events, click
here.
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Do you have lenders or analysts with less than three
years experience or who are new to commercial lending?
Do you have branch managers, business development officers,
relationship managers seeking better credit skills?
If so, the Academy may be the answer. And now it’s
available at a convenient location for Chapter members
at Mercantile Operation Center in Linthicum Heights.
Program dates are July 26-30.
RMA Lending Academy is an exciting
way for beginning level lenders and analysts to gain
the required skill sets to help them make the best possible
credit recommendations and lending decisions. It is
presented in an intense five-day format and includes
pre-course work and evening assignments. This Academy
teaches balance sheet and income statement analysis
with a focus on small to medium-sized businesses. Additional
emphasis is placed on personal financial statements/tax
returns and business tax returns for small business
customers. Topics include: Introductory Accounting,
Identifying Business Customer Needs, Analyzing Nonfinancial
Risks, Analyzing Business Financial Statement and Tax
Returns, Ratio Trend Analysis, Analyzing Personal Financial
Statement and Tax Returns, Basic Cash Flow Analysis.
The Academy can be used as a “springboard”
to other RMA programs and educational courses, providing
a solid foundation of credit and lending skills to all
attendees.
The Academy is presented in an intense five-day format
and includes pre-course work and evening assignments.
It is a basic, beginner-level course
for individuals in financial institutions intent on
“training their own” lenders and relationship
managers. It assumes the participant has very little
commercial lending experience or has never been exposed
to credit training prior to the course.
Register on line at http://www.rmahq.org/Ed_Opps/courses/lending_academy.html
or contact RMA’s customer care directly at 1-800-677-7621
and refer to priority code WEBSI/00.
P.S. Don't miss the 2004 Annual Risk
Management Conference to be held in Anaheim CA - October
16-19th -Register by 8/31/04 and save! Click here
for more info.
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The Regulators Luncheon and
Panel Discussion, co-presented by RMA Chesapeake Chapter and
the Maryland Bankers Association, held on June 3, 2004 had
a wonderful turnout of over 100 attendees! Many thanks to
our program sponsors Lerch Early, & Brewer, Euler Hermes
and RSM McGladrey.
Panelists included: John Quill, Assistant Deputy Comptroller,
Office of Comptroller of the Currency; Phyllis Zumbrun, Assistant
Commissioner Bank Supervision, Maryland State Department of
Labor, Licensing and Regulation; Steve Bareford, Supervisory
Examiner, Federal Reserve; and Doreen R. Eberley, Deputy Regional
Director, Risk Management, Federal Deposit Insurance Company.
Responding to questions posed by our moderator, Glenn Wilson,
CEO, Citizens Bank, panelists shared their views.
How did your Banks, in general, handle
the recession that now appears to be over? Regionally,
banks are strong and continue to perform well.
At this point, what is the general
condition of the Banks that you regulate?
Regionally, no major losses. Most banks reflect strong underwriting
and continue to focus on appropriate valuations. Concentration
should be placed on loan loss reserves and proper risk grade
system.
With interest rates at historical lows,
but likely to rise soon, what are the challenges that your
Banks may face and what advice do you have?
Focus is on fixed rates (over 5 years), especially on securities
side, and how these rates will impact your Bank in a rising
rate environment. Monitor loan loss reserves. Continue to
back test/stress test the portfolio. Be proactive rather than
reactive. KNOW YOUR CUSTOMER!
Is there a Real Estate “bubble”
in our markets and/or are you concerned about current R/E
valuations? Residential and Commercial?
Consensus is there is no “bubble” in this region
... limited amounts of land protect the area from “downsized”
values and Tier I Capital and development lending are the
underlying fundamentals that protect this area. The Maryland/DC
area continues to remain strong. Job growth is strong especially
now with increased jobs generated by Homeland Security and
a stronger economy which is beginning to reflect signs of
improvement. Continued emphasis should be on proper valuations
and margins.
Are there any C&I Credit related
concerns based on recent exams that you would like to share?
There was a slight “tick-up” in non-performing
from .61 to .81 the last quarter, however, valuations and
underwriting remains strong. In a rising rate scenario, focus
will be on floating rates and the borrowers’ ability
to continue to support debt service.
Is your agency concerned with any areas
of Consumer lending, e.g. home equity?
The consumers continue to take on debt and concerns remain
as to how they meet their debt burden in a rising rate environment.
Are there any operational risk concerns
that our audience should know about?
From an exam standpoint, more focus will be placed on all
facets of departmental internal controls and procedures with
a heavy emphasis on auditing procedures. A major area of concern
is the lack of follow-up or corrections when errors/violations
are noted. There will be further emphasis placed on institutions
that reflect continued growth through mergers and acquisitions.
Risk concern here will be the acquiring banks ability to keep
up with policies and procedures and the overall risks associated
with the complexity of the institution. Further focus should
be placed on the responsibility of the compliance officer
and their ability to ensure compliance with the Bank Secrecy
Act.
Any changes in your agency’s
exam focus or scope in the coming year?
No major changes. Hot Buttons with Regulators: Reg. B violations
especially with regard to spousal signatures and guarantees;
compliance with USA Patriot Act; sale treatment of Loan Participations;
more training needed in the Capital Markets. IT compliance
will be integrated into the Safety and Soundness review.
Examiners are working on a Merit Program
to reduce the burden on institutions (asset size of $1 billion
or less) by reducing time between exam periods where they
have previously received a #1 or #2 rating. Other options
will be how many times management wants to be audited, i.e.
once every 18 mos. or once a year on a specific area and 18
mos. on other areas. A pilot program is being developed on
less testing due to the confidence level of the institution
and other parameters.
More to follow on this … and watch
for details on the next regulator panel. We will keep you
apprised of upcoming events-watch for our new Program Calendar!
Jo Taylor
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On Tuesday, June 8th, the Chesapeake Chapter
held its annual Doug Dodge Awards Dinner at the Kings’
Contrivance Restaurant in Columbia. This dinner is traditionally
held to thank those individuals who have made significant
contribution, both in time and talent, to help make the year
a success.
In attendance, were several past presidents, Carolyn O’Leary,
Charles Hackman, Robert Johnson and Patricia Ceryes, who have
continued to support the Chapter. Also, in attendance were
past presidents who have remained on the Board, Thomas Johnston,
Kathleen King, Peter Hickling and Irene McGarry. Board members
in attendance were Mary Jo Taylor, Nicole Persons, Robert
Kendrick, Kimberly Armstrong, Charles Ruch, Daniel Herr and
Wendy Wotring.
We also welcomed new board members for the coming year, Christa
Hemans with Provident Bank, Vickie Tillman with Cambridge
Capital and Thad Ulrich with Annapolis Banking and Trust.
Brian Slagle with K Bank will also be joining the Board but
was unable to attend the dinner.
Those receiving awards were as follows:
Tina King, Mercantile
Bankshares Corporation – Tina has continued to support
the Chapter in arranging space for seminars in Mercantile’s
Operations Center in Linthicum. The Chapter certainly values
having access to this free space.
Trish Whelan, Farmers
& Mechanics Bank – Trish has helped arrange space
in the Frederick area for Chapter events and we appreciate
her support.
David Shallich, National
Cooperative Bank – David is a past Board member who
has continued to support the Chapter by writing the wonderful
“Spilled Milk” articles for the chapter newsletter.
David’s experience in workouts provides interesting
reading.
Thad Ulrich, Annapolis
Banking & Trust and Brian Slagle, K Bank
– Thad and Brian under the direction of Charles Ruch,
organized three Young Financial Professionals events: Early
Warning Signs of Troubled Credits, a Senior Banker panel and
a joint social gathering with the young CPA’s and attorney’s
groups.
Wendy Wotring, Frederick
County Bank – Wendy has been involved with the Chapter
and the Board for several years and has been instrumental
in our educational efforts. We thank Wendy for her commitment
and dedication to the Chapter and wish her well as she leaves
the Board.
Irene McGarry, formerly
with Riggs Bank and Pat Ceryes, formerly
with Provident Bank were presented with awards for their long-term
service to the Chapter. They both served as Presidents and
remained on the Board following their terms and have been
instrumental in the success of the Chapter over the past several
years. During this past year, both of these ladies have left
the Board and the banking industry. They will truly be missed.
Our last award of the evening went to our
President Mary Jo Taylor. Jo has done a tremendous
job leading the Chapter through a year of significant change.
Despite losing several seasoned Board members Jo was able
to stabilize the Chapter and sustain our long-held success.
All of the Board has enjoyed working with Jo and thank her
for her leadership and commitment.
Kathy King
SVP Mercantile
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Mary Ellen Slater, Washington
Post writer, lauded professional association membership in
her recent Career Track column which offers Advice for Twentysomethings
(Washington Post Sunday, June 27, 2004) as a “great
way to jump-start your career.” Slater pointed out what
she called “serious advantages” in association
membership including access to education and training, serving
as a resume builder, and providing the most efficient and
reliable networking in your field.
She also offered three tips to get the
most out of professional associations: be picky and join just
one or two and get actively involved; think local to get more
face time with fellow professionals; and don’t be shy,
volunteer to meet more people. Read her advice here,
then check out the specific benefits the Chesapeake Chapter
of RMA offers you at www.rmachesapeake.org/member.html.
For information on the Chapter’s YFP program,
contact Thad Ulrich (Thad.Ulrich@mercantile.net)
or Brian Slagle (bslagle@kbank.net).
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Steven Curwin
Merrill Lynch & Co Inc
Bradley Dean
Fannie Mae
Thomas McCollum
Euler Hermes ACI
Wyatt Shifflett
Maryland Department of Business & Economic Development
Aisha Youins-Palin
National Cooperative Bank
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