For MBT, Its All About Community, Page 12 Key Employment Trends for 2019, Page 26 The Top 5 Cyber Threats We're Facing in 2019, Page 38 Solar ...

 
For MBT, Its All About Community, Page 12 Key Employment Trends for 2019, Page 26 The Top 5 Cyber Threats We're Facing in 2019, Page 38 Solar ...
February 2019 • Volume 4 • Number 2

For MBT, Its All About Community, Page 12
Key Employment Trends for 2019, Page 26
The Top 5 Cyber Threats We’re Facing in 2019, Page 38
Solar Power: Banking the Movement, Page 50
                                   And So Much More...
For MBT, Its All About Community, Page 12 Key Employment Trends for 2019, Page 26 The Top 5 Cyber Threats We're Facing in 2019, Page 38 Solar ...
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Features                                                                          Departments

                                                                                  The Publisher’s Page                                                      4
                                                                                  Banking Convention Season Arrives!

                                                                                  Association News                                                          9
                                                                                  The latest from both national and
                                                                                  regional bank associations

                                                                                  Community Action                                                        14
                                                                                  Banks and their involvement and action in
                                                                                  the communities they serve

On The Cover: PCBB On The Move                                            6       Banking Financial News                                                  15
A close look at PCBB                                                              Financial news from banks around the
                                                                                  Great Lakes region

Its All About Community                                                12         Industry News                                                           26
Community involvement a way of life                                               The people, places, names, and
for MBT, by John Benjamin                                                         faces of the region’s bankers

Key Employment Trends Poised to                                        22         The Business of Banking                                                 40
Impact Your Business in 2019                                                      Business developments of the region’s
By: Mark Angott                                                                   bankers

The Top 5 Cyber Threats Facing                                         38         Banking Technology                                                      52
the Financial Industry in 2019                                                    New systems and products to help you
By: Steve Sanders                                                                 better serve your customers and your
                                                                                  bottom line

Solar Power:Banking The Movement                                       52         Around the World                                                        61
By Roger Kuznia                                                                   Notable banking developments from
                                                                                  outside the Great Lakes region

Great Lakes Banker (ISSN: 1044-1949) is published monthly by Michigan Banker LLC, 1430 E. Michigan Ave, Lansing MI 48912. It is edited exclusively for the
presidents, CEOs, directors, and other officers and staff members of the banks and bank suppliers serving the Great Lakes region. The one-year subscription price
is $97.50. Address all correspondence to Great Lakes Banker, c/o Michigan Banker LLC, PO Box 12236, Lansing MI 48901-2236. Periodicals postage pending or
paid at Lansing MI and at additional mailing offices. POSTMASTER: Please send address changes to Great Lakes Banker, PO Box 12236, Lansing MI 48901-2236.
Greg O’Neil, CEO.

      Great Lakes Banker • February 2019                                                                                                                        3
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February 2019
                                                           Great Lakes BANKER is a monthly news
                                                           magazine that is devoted to the region’s
Convention Season Arrives!                                 commercial banking industry and to the firms
                                                           that function as suppliers to the banking
                                                           industry of the Great Lakes. We also publish an
    With the holidays well behind us, the                  annual banking snapshots and trends issue in
Banking Convention season kicks off and that               September, which looks back to last year and
                                                           forward to the upcoming year anticipating
means hitting the road with several hundred                changes in the region’s banking industry.
issues of Great Lakes Banker magazine.                     We accept display advertising on behalf of
                                                           firms who recognize the region’s banking
We are first headed for Illinois and the ONE               industry as being comprised of valuable
Convention to close out the month and start                business prospects.

March. However, this month’s travels have                  Great Lakes BANKER focuses primarily on the
just begun. We next plan to descend upon                   commercial banking community in the Great
                                                           Lakes region. Great Lakes BANKER is edited for
Nashville, Tennessee and take in the ICBA                  the directors, presidents, CEOs, and employees
Annual Convention which commences March 18                 of the region’s commercial banks, and for the
                                                           supplier firms that provide goods and services
and continues through March 22. We look                    to that industry.
forward to seeing friends and making new                   We publish a variety of by-lined columns
ones at this great event.                                  authored by individuals considered to be
                                                           knowledgeable in their respective fields of
In addition to browsing the fine exhibits,                 endeavor and who have a valuable message
                                                           to share with the Great Lakes region’s banking
there are also educational, informational,                 community. Opinions in these columns,
and entertaining sessions, covering a wide                 however, are those of the authors and do not
                                                           necessarily represent the opinions of the staff
variety of banking issues including sales                  members of Great Lakes BANKER Magazine.
& marketing, regulation, technology and
much more. As usual, Great Lakes Banker                      Publisher - Greg O’Neil
will be there, taking all those photos,                      Editor - John Benjamin
making memories and, of course, listening                    Designer - Steve Salter
to the heartbeat of the Great Lakes banking
community.                                                 Published by Michigan Banker LLC Printed &
                                                           Mailed by BRD Printing Inc. Lansing, MI
This issue includes some great features,
as well as our usual smörgåsbord of Banking                Copyright ©2010 ISSN 1044-1949.

Industry news departments. Read on…and                     Address all correspondence, change of
remember to take your issue on the flight to
                                                           address, suggestions, and story ideas to:

your next convention!                                                   Great Lakes BANKER
                                                                           P.O. Box 12236
    Sincerely                                                         Lansing, MI 48901-2236
                                                                     Tel: 800.288.4248 ext. 10;
                                                                            517.484.0775
                                                                          FAX: 517.484.4676
                                                                   Great Lakes BANKER Online:
                                                                       mybankermag.com
    Greg O’Neil, Owner and Publisher, Great Lakes Banker                    EMAIL US:
                                                             GREG O’NEIL - greg@mybankermag.com
                                                               EDITOR - editor@mybankermag.com

4                                                          Great Lakes Banker • February 2019
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Mark Williams
                                      President

                                  Michigan’s #1
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Knowledge  Experience  Results
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PCBB: Staying True to Its Roots,
             While Catapulting Forward
As the industry keeps transforming, PCBB                       PCBB has since branched out from the west to focus
                                                           on serving community banks in all 50 states, while staying
continues to develop innovative solutions                  true to its original mission. Still owned by community
                                                           banks, PCBB remains uniquely positioned to understand
to exceed customer expectations and turn                   the challenges and opportunities of their clients – they’ve
                                                           been in their shoes.
challenges into opportunities.
                                                               Steve Brown, CEO and President of PCBB relays, “We
                                                           have always stayed true to our original mission of helping
    I n 1997, PCBB was formed by a group of                community banks to gain a competitive advantage.
                                                           We continue to serve them with expert guidance and
experienced community bankers with a single mission:
partnering with community banks to ensure their            innovation so they can face their challenges head on.”
success. By providing high-quality, competitively-priced
correspondent banking, lending solutions, and advisory     Integrating Technology and Insights
services coupled with personalized service, PCBB has           Much has changed in the industry over the years and
helped over 600 community banks across the country to      PCBB has changed with it, while still remaining true to its
expand their product offerings, have access to experts     roots. As an experienced partner with a transformational
and gain a competitive edge.                               approach, PCBB has created more efficient and intuitive
     PCBB started on the West Coast and proceeded to       solutions to help banks leverage data, connect the dots
reach out to 30 community banks, which became the          for a greater understanding and optimize their resources.
first shareholders. The response was overwhelming –
community banks wanted a broader product and service           One way that PCBB supports banks with intuitive
portfolio for their customers and considered PCBB a        solutions is through its highly knowledgeable regional
reliable partner.                                          managers. PCBB’s Earl Charneske, who is the regional
                                                           manager in the Midwest, works closely with community

6                                                                             Great Lakes Banker • February 2019
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bankers to identify areas where         Community banks may not always have the internal
                           gaps exist. PCBB’s industry         resources to address certain needs, so they need a partner
                           experts, along with the right       that understands their structure, market and potential
                           tools, support community            obstacles.
                           banks     for   their    specific
                           and changing needs. This
                           invaluable combination can:
                                                               Solutions to Empower Community
                           increase customer opportunity       Banking Growth
                           and profitability with PCBB’s
                           hedging solutions; provide               Today, PCBB offers a wide variety of services and
                           international services using        solutions, including correspondent banking, lending, and
                           existing in-house staff; and        risk management and performance advisory services.
                           implement CECL with expert          •   Correspondent Banking and International Services
Earl Charneske,            guidance every step of the
Regional Manager for
                                                                   As small business customers grow internationally,
                           way. These PCBB services and            community banks need international services from
the Midwest                others allow community banks            a partner who isn’t out competing for this same
to capture more customers and opportunities quickly.               business.
Charneske adds, “The community banks that I work
with find PCBB’s robust products, combined with expert         •   Lending. Community banks can meet their strategic
insight and data analysis, set them up for success through         portfolio objectives and achieve strong competitive
a trusted and lasting partnership.”                                advantages by buying and selling loan participations.
                                                                   When banks have trouble growing their loans
    As a bank itself, PCBB is able to “test-drive” its             organically, PCBB’s loan purchase program can
products first to ensure the final result fits the changing        provide a boost.
needs of the banking industry. Through this unique role,
PCBB knows the solutions will not only be effective, but       •   Hedging. Business customers want to lock in long
also compliant with regulations. PCBB banking experts              term fixed rates, but that doesn’t naturally fit
provide advisory guidance while the technology provides            the funding or interest rate structure of a typical
the efficiencies, ensured compliance and flexibility.              community bank. PCBB offers a unique hedging
                                                                   service that allows community banks to compete
    With its Financial Insight & Technology Solutions,             effectively and maintain their borrower relationships,
including CECL FITTM, PCBB combines two aspects –                  despite this challenge. This service is available at
expert insight supported by unparalleled technology                both the loan and portfolio level and is designed
tools to solve the regulatory, risk and profitability needs        to help community banks protect against a rising
of community banks. PCBB provides financial institutions           rate environment and stabilize liability costs, while
with the opportunity to leverage their data for multiple           providing fee income along the way.
purposes all at once. Customer profitability, loan loss

                                                          “
reserves and stress testing, are just some examples of
how banks can use their data to enhance efficiencies and
unearth opportunities.
                                                                     One of the best benefits of
    Creedence Shaw, SVP and Chief Credit Officer, Santa
                                                                        working with PCBB is
Cruz County Bank shares these thoughts on PCBB’s
advisory services, “One of the best benefits of working
with PCBB is having a knowledgeable resource to advise
us on the potential impact on our balance sheet. For
example, if we are downgrading a loan, having this kind
of information at our fingertips makes our job much
                                                                      having a knowledgeable
                                                                      resource to advise us on
                                                                     the potential impact on our
                                                                                                             “
easier because they do the heavy lifting while we stay in                  balance sheet.
control of the final decisions.”

    Great Lakes Banker • February 2019                                                                                 7
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•   Advisory Services.      Community banks these days            For over 20 years, PCBB has listened to its customers
    have more regulatory and profitability pressures          and proactively addressed their needs by providing
    than ever before, so choosing a partner to help           innovative solutions, as the industry continues to
    can be challenging. PCBB offers a wide variety of         dynamically change. Brown concludes, “As the industry
    services such as risk assessments, stress testing and     keeps transforming, we continue to develop innovative
    profitability generation tools. With the coming of        solutions to exceed customer expectations and turn
    CECL, PCBB’s CECL FIT combines a SaaS solution            challenges into opportunities. Whether a community
    with banking advisors to uniquely meet the needs of       bank is looking for a way to boost its lending efforts or
    community bankers. This solution provides maximum         increase profitability, PCBB is a reliable partner that helps
    flexibility by delivering all 7 methods under the rule,   banks succeed every step of the way.”
    so bankers can address the variety of loan needs and
    structures.

    PCBB has a broad product assortment of services
and experts to support its bank clients every step of the
way. As Harry Weetenkamp Jr., Chief Lending Officer,
Commercial Lending, Frederick County Bank, comments
on the value of the customer profitability solution, “In a
competitive marketplace, this is a great product to drive
our loan pricing. I can’t say enough about the benefits
of this product. It is a great resource and tool for the
commercial lending team.”

Delivering Indispensable Advice to
Community Bankers
     As a reliable partner, PCBB has provided more than
just products to its bank customers. With a long-standing
advisory propensity, PCBB is often invited to speak at a
variety of conferences to share industry insight. Its team
participates in over 100 industry-related events each year.

    PCBB’s widely read BID – a daily industry newsletter
for over 85,000 community bankers and regulators
– was created as another way to add value for their
banking customers. This popular newsletter offers the
latest and most relevant industry, regulatory and advisory
information for community bankers to stay abreast of
trends and to use in their strategic planning and lending
activities.

    Due to its enduring relationships and proven
aptitude, PCBB often receives calls and emails from its       About PCBB: PCBB is dedicated to serving the needs
bank customers to assist on a wide range of community         of community-based financial institutions, PCBB’s
banking issues, from De Novo services to imaging              comprehensive and robust set of solutions include:
for Canadian cash letters to CECL. With exceptional           correspondent services, lending solutions and credit
customer service and solution execution, PCBB has been        and risk management advisory services, including
able to provide its bank customers with the right solution    CECL. To learn more about PCBB, contact Earl
at the right time.                                            Charneske at echarneske@pcbb.com.

8                                                                                 Great Lakes Banker • February 2019
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CFPB Releases Report on 2013 ABA Urges Trump, Congress to
Servicing Rule               Re-Open Government
    The Consumer Financial Protection Bureau released a            With the government shutdown now in its third
major report assessing its 2013 RESPA mortgage servicing       week, ABA President and CEO Rob Nichols has called on
rule. The five-year assessment, which was mandated by          President Trump and congressional leaders to reopen the
the Dodd-Frank Act, found that certain elements of the         government. He warned that the shutdown has already
rule were quite costly to implement, while others were         taken a toll on federal employees, consumers and the
less so. ABA staff are closely reviewing the 300-page          broader economy, and that these effects are likely to
report.                                                        worsen if it persists.

     The bureau noted that, starting after 2010, borrowers          “Our member banks across the country report that the
who became delinquent became increasingly likely to            shutdown is starting to take a toll on local communities,
recover from delinquency. Attempting to untangle the           preventing customers from securing mortgage approvals
results of the rule with the broader economic trend, the       and small business loans, while threatening even more
CFPB estimated that without the rule, at least 26,000          harm if the impasse continues,” Nichols said. “We call on
more borrowers — less than 0.05 percent of the 53              all sides to work in good faith to end the shutdown for
million outstanding mortgage loans that year — who             the good of the country.”
became delinquent in 2014 would have been foreclosed
on, and that at least 127,000 fewer delinquent borrowers           Nichols added that banks have already begun aiding
would have recovered.                                          customers directly affected by the shutdown in various
                                                               ways, including: offering interest-free payroll advances
    Meanwhile, the CFPB’s research found that the              or other-low interest loans; waiving fees; making loan
cost of servicing a mortgage rose substantially in the         modifications; and extending payment deadlines
years before and around the time the rule and similar          depending on individual circumstances. “We applaud
requirements took effect. Servicers also reported one-         these institutions for helping their fellow Americans
time implementation costs ranging from $53 million to          during this period of hardship,” he said.
$743 million. The total ongoing cost of complying with
the rule was estimated to range from $156 million to               In related news, the financial regulatory agencies
over $572 million annually. According to the report, the       today issued a statement encouraging banks to work
costliest provisions of the rule to comply with related to     constructively with customers affected by the shutdown.
loss mitigation application processes and foreclosures.        They noted that “prudent workout arrangements that
                                                               are consistent with safe-and-sound lending practices”
                                                               should not be subject to examiner criticism.

Consumer Prices Declined Slightly in December
    The Consumer Price Index dipped 0.1 percent in                 The food index increased 0.4 percent in December.
December on a seasonally adjusted basis, according to          Prices for food at home increased 0.2 percent while food
U.S. Bureau of Labor Statistics. This followed no change       away from home grew 0.3 percent. Over the past 12
in November. Over the last 12 months, the all-items index      months, food prices are up 1.6 percent.
rose 1.9 percent, the first time this index has increased at
less than 2 percent since August 2017.                             The energy index decreased 3.5 percent in December
                                                               after a 2.2 percent decrease in November. Gasoline prices
    Prices for all items less food and energy, the “core       decreased, falling 7.5 percent. The energy index fell 0.3
CPI,” grew 0.2 percent, following a 0.2 percent November       percent in the last twelve months.
increase. The index rose 2.2 percent for the 12 months
ending in December, unchanged from last month.

    Great Lakes Banker • February 2019                                                                                9
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ICBA and The Venture Center Announce Startup Fintech
Finalists for ICBA ThinkTECH Accelerator
    Washington, DC—The Independent Community                        The 2019 program received 190 applications from
Bankers of America® (ICBA) and The Venture Center               early-stage financial technology companies across the
today announced the 10 startup companies that have              U.S. and 39 other countries. The 10 chosen startups are:
been selected to participate in the ICBA ThinkTECH
Accelerator. The first-of-its-kind program exclusively             •   Adlumin, Alexandria, Va.
focuses on community bank product development for                  •   Agora, New York, N.Y.
the benefit of community banks and the customers they              •   Botdoc, Monument, Colo.
serve.                                                             •   CRiskCo, Brisbane, Australia
                                                                   •   Gerald, New York, N.Y
    ICBA Chairman-Elect and community banker Preston               •   KapitalWise, New York, N.Y.
Kennedy, ICBA Services Network Chief Operating Officer             •   MK Decision, San Diego, Calif.
Kevin Tweddle, Venture Center Executive Director Wayne             •   Sou Sou, Washington, D.C.
Miller, Arkansas Governor Asa Hutchinson, Arkansas                 •   Teslar by 3E, Fayetteville, Ark.
Economic Development Commission (AEDC) Executive                   •   Vetter, New York, N.Y.
Director Mike Preston, and other community leaders will
be in attendance today during a kickoff event at The
Venture Center in Little Rock, Ark.                                 The selected companies will participate in a rigorous
                                                                12-week bootcamp program at The Venture Center
    “ICBA puts its mission into action with our                 in Little Rock, which is designed to accelerate the
partnership with The Venture Center,” said Preston              development of their financial innovations. The chosen
Kennedy, president and CEO of Zachary Bancshares Inc.           companies will gain direct exposure to thousands of
of Zachary, La. “This partnership is a particularly favorable   community banks and receive initial investments, along
environment from which community banks and financial            with mentoring and training from ICBA and The Venture
technology companies will sharpen our shared vision to          Center’s network of mentors and leaders.
create products, cultivate solutions, and eliminate barriers
to delivering the superior experience that our customers            “Arkansas is the birthplace of fintech, and the hub of
have come to expect.”                                           a strong community bank presence. The state continues
                                                                to make its mark on fintech through our accelerator
     “The ICBA ThinkTECH Accelerator is focused on              programs,” Arkansas Governor Asa Hutchinson said.
identifying and accelerating the development and                “We are pleased to welcome these 10 startups to Little
growth of early-stage financial technology ventures that        Rock and look forward to the impact they will have on
will spur the most innovative and beneficial community          community banks.”
bank-fintech partnerships,” ICBA Services Network
COO Kevin Tweddle said. “The companies selected as                  “Community banks have a significant impact on the
finalists have all shown great possibility to fulfill current   U.S. economy,” AEDC Executive Director Mike Preston
community banking needs while creating opportunities            said. “The State of Arkansas is pleased to serve a role in
for the future. It’s all about creating that high-tech, high-   shaping the future of community banking and supporting
touch future of community banking.”                             fintech startups from across the world through the
                                                                accelerator.”
    “The Venture Center is honored to produce this
program,” Venture Center’s Executive Director Wayne                 The 2019 program will culminate with a live
Miller said. “We’re delighted that these companies have         demonstration to an audience of community bankers at
chosen to participate in this opportunity, and over the         ICBA LIVE® in Nashville on March 18. A similar event
next 12 weeks, I’m confident that we will create some           will also be held at The Venture Center on March 27
remarkable solutions to address genuine challenges that         for community banking leaders, potential investors and
community banks are facing.”                                    entrepreneurs.

10                                                                                 Great Lakes Banker • February 2019
CFPB Issues Analyses of Qualified Mortgage Rule
    The      Consumer        Financial        While the CFPB did not make            on potential changes. ABA staff are
Protection    Bureau     issued     its   any recommendations for improving          currently in the process of reviewing
assessment of the ability-to-repay/       the rule, it noted that “the issuance      the report, will continue to work
Qualified Mortgage rule, as required      of [the report] is not the end of the      constructively with the bureau to
by the Dodd-Frank Act. While the          line,” and that it would continue to       advocate for improvements to the
report addressed matters relating         seek input from industry stakeholders      rule.
to the costs and benefits of each
segment of the rule, as well as overall
impact on credit, it did not include
a cost-benefit analysis. The bureau
noted that it is considering whether                          Consultants to the Financial Industry
to include such analyses in future
assessments and reports.
                                                              Young & Associates, Inc.
    According to the report, the
rule had negligible effects on
borrowers’ ability to access credit
                                                                     Lending Services
and on the cost of mortgages at the                             Our lending services will assist you in
aggregate market level. However,                                creating a high-quality loan portfolio,
in a qualitative survey of mortgage                             meeting complex regulatory
lenders, a majority indicated that                              requirements, and improving the overall
they had changed their business                                 efficiency of your lending function.
models as a result of the rule. These
changes included “increased income                                 Third-Party Loan Review
documentation or increased staffing,
                                                                   Credit Process Review
while others mentioned adopting
a policy of not originating non-QM                                 ALLL Review
loans,” the report said.                                           Due Diligence
    Significantly, the report also                                 Policy Review
confirmed the need to resolve the
                                                                   Customized Lending Training
status of the rule’s temporary GSE
QM provision, which grants qualified                               Appraisal Review
mortgage status to loans eligible                                  CRE Stress Testing
to be purchased or guaranteed by
Fannie Mae or Freddie Mac, and                                     Ag Stress Testing
which will sunset when the GSEs                                    Quality Control
leave conservatorship in 2021. ABA
has consistently raised concerns                                 For more information contact Bob Viering at
that markets have become overly                                   bviering@younginc.com or 800.525.9775.
dependent on what was intended
to be a temporary patch, and the
report concedes that the continued

                                                                                                          40
prominence of the GSE QM signals
that a key goal of the regulation
“has not been met.”
                                                                                                           YEARS
                                                                                                         1978 - 2018

    Great Lakes Banker • February 2019                                                                                 11
It’s All About Community
     By John Benjamin

    For Monroe Bank and Trust helping the community is          The bank was founded in 1905 as Monroe
a way of life. There are 4 major components in how they     State Savings Bank. Monroe Bank & Trust is a bank
help their communities:                                     headquartered in Monroe, Michigan. It is a subsidiary
                                                            of MBT Financial Corp., a bank holding company that
1. Sponsorships and charitable contributions to over        operates 20 branches, including 14 branches in Monroe
   200 organizations a year;                                County, Michigan and 6 branches in Wayne County,
2. Volunteerism through a structured program called         Michigan.
   ENLIST to about 300 organizations, contributing
   about 7,000 hours a year;                                    “Monroe Bank & Trust is incredibly proud of what they
                                                            have achieved with their employee ENLIST volunteerism
3. Financial Education programing for all ages; and         program over the past 35 years. The willingness of
4. Their officers contribute thousands of hours to non-     their employees to offer the level of commitment and
   profits through boards and committees every year.        volunteerism is a true testament to the quality of the
   Within Financial Education there are multi-faceted       individuals who work there, and their enthusiastic desire
programs:                                                   to excel in both customer service during work hours
                                                            and service to humanity during their personal time.” H.
•    Elementary school students are taught in-person        Douglas Chaffin, Monroe Bank & Trust President and
     about how and why to save, managing their finances     CEO
     through a minor deposit account; and in addition,
     they have electronic learning modules available that       “Our commitment to the community is unparalleled
     teach them about various foundational topics of        in nature and scope and is zealously supported by our
     financial literacy.                                    management team and Board of Directors. We’re
                                                            proud that we will continue our financial education and
•    High school students are mainly taught through         volunteer outreach programs with our planned merger
     a more advanced online curriculum, which even          with First Merchants Bank. We’ll remain a leading
     prepares them for things like budgeting, financing     corporate citizen in our region, actively engaged through
     college, cars, homes or investing for the long-term.   organizations and community leadership, providing value
•    Adults of all ages are taught through in-person        and influencing a rich quality of life for all community
     workshops that move through topics like saving,        members.” Amanda Phebus, Community and Client
     budgeting, credit, home financing and retirement.      Market Director, Monroe Bank & Trust.
     Keeping your finances and personal data secure is
     also a core tenet of these workshops.                      Monroe Bank & Trust measures success in not just
                                                            how they perform financially, but how they perform in a
                                                            ways that has a meaningful and positive benefit for their
                                                            customers, employees, shareholders, and communities.

                                                                 From the community’s perspective, having a partner
                                                            like Monroe Bank & Trust means they can count on them
                                                            for the manpower and financial literacy support that is
                                                            not available elsewhere. They have received hundreds
                                                            and hundreds of letters thanking them for being there
                                                            to help.

                                                                Since inception, their volunteerism programs have
                                                            contributed over 200,000 hours across Southeast
                                                            Michigan. At the time, they realized many non-profit
                                                            organizations lacked the manpower resources necessary
                                                            to make their fundraising events and programs truly

12                                                                            Great Lakes Banker • February 2019
effective. In 1984, they actively addressed this community       Their community commitment is enriched with
need by developing unique, formal, sustainable, effective    Monroe Bank & Trust’s intense focus on improving
and impactful employee volunteer program ENLIST              financial literacy. Based upon award recognition from the
(Employees Now Linked In Service Together). “It is a         Michigan Bankers Association, Independent Community
blessing to have such a dedicated group of volunteers. I     Bankers of America and the State of Michigan, they are
could not do my job as well without the help of ENLIST.      confident that they operate one of the most rigorous,
ENLIST is beginning to feel like family to us!” Loretta      powerful, far-reaching, consistent and impactful
LaPointe, Recreation Superintendent, City of Monroe          suites of financial education outreach programs in the
                                                                                         country. Indeed, they have
    The Monroe Bank & Trust                                                              been described as providing
model differs from many                                                                  a model, multi-tiered financial
volunteer programs in that                                                               education program for the
community organizations can                                                              banking industry.
request employee volunteers
throughout the calendar year.                                                               Even before the Great
Their employees assist local                                                            Recession,     Monroe     Bank
churches, schools and non-                                                              & Trust recognized the
profits with their manpower                                                             need to improve levels of
needs,     providing   much                                                             financial literacy and money
needed help to run events,                                                              management. This resulted
serve meals, and manage cash                                                            in the establishment of
needs at auctions.                                                                      an innovative, formalized,
                                                                                        systematic,        measureable
     As a community bank,                                                               and coordinated multi-tiered
Monroe Bank & Trust has been                                                            approach to the literacy
active in the communities                                                               challenge. Driven by the desire
we serve for over 160 years.                                                            to offer programming that
They believe that strong                                                                delivers the most value to the
companies help to build strong                                                          community they designed
communities and that the                                                                programming that supports
concept of “giving back” is                                                             people of all ages through
critical to success on all levels.                                                      school programming and adult
Their corporate philosophy                                                              workshops. This fosters their
actively encourages employee                                                            goal of being a trusted advisor,
participation in local non-profit                                                       supports deposit and other line
organizations, schools, service                                                         of business relationships and
clubs and churches. They pride                                                          leads to a vibrant community.
themselves on the quality and
caliber of their teams and                                                               The banking industry
realize the power of people                                                          continues to evolve and MBT
to effect positive change, and                                                       is ensuring their outreach
to enrich and invigorate their                                                       continues       making     the
communities.                                                                         most    meaningful      impact
                                                                                     to individuals, schools and
    Over 80% of their                                                                students. “Thank you so much
employees are involved in                                                            for presenting your “Keep
our nationally recognized                                                            It Safe” financial workshop.
volunteer program and assist                                                         The students enjoyed your
over 200 non-profit organizations every day of the year.     presentation and are now armed with tools to protect
Through volunteerism, our employees sustain their            their accounts and hopefully not fall victim to scams!
communities through contributions of time, effort and        Thanks again!” Anne Knabusch, Monroe High School
hard work.

     Great Lakes Banker • February 2019                                                                              13
Jimmie Johnson and Ally Unveil Paint Scheme for New No. 48 Ally Chevy
    NEW      YORK      —Legendary          wish come true. We are enormously       customers.”
NASCAR driver Jimmie Johnson and           grateful for his support and passion        Johnson, who is signed with
Ally revealed the new look for the         for creating life-changing moments      Hendrick Motorsports through 2020,
No. 48 Ally Chevrolet this morning,        for wish kids.”                         selected a black gloss as his base
unveiling a blend of Ally’s unique             “This is an exciting beginning      color with matte decals in Ally’s color
branding along with Johnson’s iconic       with Ally, and we wanted a car that     pallet. Johnson’s iconic neon yellow
number and color.                          conveyed that excitement to our         48 will anchor the car.
     Ally Financial Inc. (NYSE: ALLY)      fans,” Johnson said this morning
is a leading digital financial services    after unveiling the new car on Good
company with assets of $173.1              Morning America. “Personally, I’ve
billion as of September 30, 2018.          put a ton of time in on this paint
As a client-centric company with           scheme to help our team develop the
passionate customer service and            new look.”
innovative financial solutions, Ally           “This is an exciting beginning
is relentlessly focused on “Doing it       with Ally, and we wanted a car that
Right” and being a trusted financial       conveyed that excitement to our
partner for its consumer, commercial,      fans,” Johnson said this morning
and corporate customers. Ally’s            after unveiling the new car on Good
award-winning online bank (Ally            Morning America. “Personally, I’ve
Bank, Member FDIC and Equal                put a ton of time in on this paint
Housing Lender) offers mortgage-           scheme to help our team develop the
lending services and a variety of          new look.”
deposit and other banking products,
including CDs, online savings, money           In October, Ally, a leading
market and checking accounts, and          digital financial services company,
IRA products.                              announced that it would join
                                           Hendrick Motorsports as the whole-
     One of Johnson’s most-avid fans       season primary sponsor of Johnson’s
was on hand for the reveal in New          team in 2019 and 2020. The
York at the GMA studio. Johnson and        sponsorship will feature Ally on the
Ally teamed with Make-A-Wish® to           champion driver’s cars throughout
surprise 10-year-old Trevin of Florida,    the full 38-race NASCAR schedule,
by flying him and his father, an armed     beginning with February’s 2019
services veteran, to New York for the      DAYTONA Speedweeks and the 61st
car reveal and revealing that his wish     running of the DAYTONA 500.
to attend the DAYTONA 500 would
come true. Trevin, who has cystic               “We wanted Jimmie and fans
fibrosis and is a big NASCAR fan, will     throughout the country to love
attend the race as Johnson’s guest.        the car, so we were ecstatic that
                                           he took such a hands-on approach
    “Today is such an incredible day       to developing a paint scheme that
for Trevin. We are grateful to Ally and    would stand out and his fans would
Jimmie Johnson for inviting Trevin to      embrace,” said Andrea Brimmer,
this car and wish reveal today,” said      chief marketing and PR officer for
Shaina Reeser, director of sports and      Ally. “It’s just another example of
entertainment for Make-A-Wish.             why our relationship is such a great
“For 15 years, Jimmie Johnson has          match. His values line up with
been committed to granting wishes          Ally’sapproach. We both have high
for children with critical illnesses and   standards and want to make sure we
understands the importance of a            ‘Do it Right’ for our fans and
14                                                                                Great Lakes Banker • February 2019
Crestmark Provides More Than
$73.2 Million in Financial Solutions to Six Solar Energy Clients
    TROY,           MI—Crestmark’s         •   On Dec. 27, a $20,836,840 solar      •   A $20,836,840 solar construction
Joint Ventures division and the                construction term loan facility          term loan facility was provided
Government Guaranteed Lending                  was provided to a solar energy           to a solar energy provider in
division secured a combined total of           provider in Oregon. Once the             Oregon on Dec. 27. Once the
$73,280,557 in financial solutions             construction of the 15.24 MW             construction of the 15.24 MW
for six solar energy clients in the            DC, 116.3 acre utility-scale solar       DC, 60.8 acre utility-scale solar
second half of December.                       farm is completed, the term loan         farm is completed, the term
                                               facility will be refinanced by a         loan facility will be refinanced
The Joint Ventures division:                   $10,000,000 USDA Rural Energy            by a $10,000,000 USDA REAP
•   On Dec. 18, a $4,124,472                   for America Program (REAP)               permanent debt loan facility
    120-month operating lease                  permanent debt loan facility and         and a $1,900,000 USDA B & I
    transaction was completed with a           a $1,900,000 USDA Business &             permanent debt loan facility for
    solar developer in Massachusetts.          Industry (B & I) permanent debt          a 25-year term; and will have a
    The financing will be used to              loan facility for a 25-year term;        utility company as the off taker.
    install a 2,244 kilowatt-direct            and will have a utility company
    current (KW DC) solar farm in              as the off taker.
    Vermont, which has a local utility
    as the off taker.
•   A $1,310,405 solar construction
    term loan facility was provided to
    a solar developer in Vermont on
    Dec. 21. Once the construction
    of the 745 KW DC solar farm
    is completed, the term loan
    facility will be refinanced by                  RESPONSIVE SERVICE.
    a      $2,600,000      120-month
    operating lease; and will have                  EXPERIENCED COUNSEL.
    local municipality as the off taker.
•   On Dec. 21, a $6,172,000                                Kotz Sangster is your law firm.
    180-month operating lease
    transaction was completed with
    a solar developer in Connecticut.                                   kotzsangster.com
    The financing will be used to
    install a 2,810 KW DC solar farm
    in Vermont, which has a local
    utility as the off taker.
The   Government          Guaranteed
Lending division:
                                                  Specialists in Finance Law                      Contact
•   A $20,000,000 pre-notice to
                                                  • Loan Documentation and Review                 Greg Wysocki
    proceed line of credit facility was
    provided to a renewable energy                • Mergers and Acquisitions                      Rob Goldi
    developer in North Carolina on                • Creditor’s Rights                             Andrew Barnes
    Dec. 20. The financing will be
    used to for solar development              Detroit • Bloomfield Hills • Grand Rapids • Southwest Michigan
    capital needs.
    Great Lakes Banker • February 2019                                                                                15
M&T Bank Corporation Announces 2018 4th Quarter and Full-Year Results
   BUFFALO, NY—M&T Bank Corporation (“M&T”)                  quarter. The impact of that benefit on net income was
(NYSE: MTB) reported its results of operations for 2018.     offset by a $20 million contribution to The M&T charitable
     GAAP Results of Operations. Diluted earnings per        Foundation in the fourth quarter that, after applicable tax
common share measured in accordance with generally           effect, reduced net income by $15 million. As compared
accepted accounting principles (“GAAP”) were $3.76 in        with 2017, income tax expense in all 2018 periods reflects
the fourth quarter of 2018, 87% higher than $2.01 in         the reduction of the corporate Federal income tax rate
the year-earlier quarter and 7% above $3.53 in the third     from 35% to 21%. M&T’s results in 2017’s final quarter
quarter of 2018. GAAP-basis net income in the recent         were reduced by $98 million, or $.65 of diluted earnings
quarter was $546 million, up from $322 million in the        per common share, predominantly reflecting the impact
fourth quarter of 2017 and $526 million in the third 2018    of that lower tax rate on the carrying values of M&T’s net
quarter. GAAP-basis net income for the fourth quarter        deferred tax assets and other items.
of 2018 expressed as an annualized rate of return on              Commenting on M&T’s financial performance, Darren
average assets and average common shareholders’ equity       J. King, Executive Vice President and Chief Financial
was 1.84% and 14.80%, respectively, improved from            Officer, noted, “We are extremely pleased with M&T’s
1.06% and 8.03%, respectively, in the corresponding          performance this past quarter and for 2018. Our results
2017 period and 1.80% and 14.08%, respectively, in the       reflect a continuation of many positive factors including
third quarter of 2018. In December 2018, M&T received        growth in interest and noninterest revenues, subdued
approval from the Internal Revenue Service to change         credit costs and well-controlled expenses. Average
its tax return treatment for certain loan fees retroactive   balances of loans to commercial customers rose in the
to 2017. Given the reduction of the Federal income tax       recent quarter and year-end commercial balances grew
rate in 2018, that change in treatment resulted in a $15     $2.2 billion from the end of the third quarter. We believe
million reduction of income tax expense in the recent        M&T is well positioned as we enter 2019.”

                                                                                First For Your Success
                                                        United Bankers' Bank is proud to be the nation's first and the upper Midwest's
                                                        largest bankers' bank, covering 14 states and serving over 1,000 community
                                                        banks from the Pacific Northwest to the Great Lakes. We can't wait to share our
                                                        passion for community banking with youl

                                                                 For more information, contact your Great Lakes Calling Team:

                                                                     Pat Burnette                       Bob McGovern
                                                                    VP, Investments            VP, Correspondent Banking Officer
                                                                    248.880.0521                       614.962.6505
                                                               pat.burnette@ubb.com               bob.mcgovern@ubb.com

                                                                     Chris Knight                          Scott Burke
                                                              SVP, Regional Sales Manager                  VP, Lending
                                                                   614.962.6504                         614.962.6503
                                                               chris.knight@ubb.com                 scott.burke@ubb.com

                                                                                        First for Your Success'"
                                                                                            ubb.com • Member FDIC
                                                                                                800.752.8140

16                                                                                     Great Lakes Banker • February 2019
CNB Community Bancorp, Inc.                                 Flagstar Commences $50 Million
Reports Fourth Quarter 2018                                 Accelerated Share Repurchase
Results                                                     TROY, MI—Flagstar Bancorp, Inc. (NYSE: FBC), the
     HILLSDALE, MI—CNB Community Bancorp, Inc.              holding company (the Company”) for Flagstar Bank,
(OTC: CNBB), the parent company of County National          FSB, announced that as part of its previously announced
Bank, announced earnings for the three and twelve           intention to return capital to shareholders through
months ended December 31, 2018. Earnings during             dividends and share buybacks, the Company has entered
the fourth quarter of 2018 totaled $2.00 million, an        into an accelerated share repurchase (“ASR”) agreement
increase of $550,000, or 37.9%, from $1.45 million          with Wells Fargo Bank, N.A. (“Wells Fargo”), to
during the three months ended December 31, 2017.            repurchase up to $50 million of the Company’s common
Basic earnings per share increased to $0.95 during the      stock.
three months ended December 31, 2018, up $0.25 from
                                                                The ASR program is expected to commence on
$0.70 during the fourth quarter of 2017. For the year
                                                            February 1, 2019. Under the terms of the ASR, the
ended December 31, 2018, CNB Community Bancorp,
                                                            Company will receive an initial delivery of approximately
Inc. (the “Company”) reported net income of $8.47
                                                            1.3 million shares which represents 82 percent of the total
million, an increase of $2.42 million, or 40.1%, from
                                                            number of shares expected to be repurchased pursuant
$6.05 million during the year ended December 31, 2017.
                                                            to the ASR program, based on the closing price of
Basic earnings per share increased to $4.06 during the
                                                            $30.85 on January 31, 2019. The total number of shares
year ended December 31, 2018, up $1.13 from $2.93
                                                            to be repurchased will be based on the average of the
during 2017.
                                                            Company’s daily volume-weighted average stock price,
    The annualized return on average assets (ROA)           less a discount, during the term of the ASR program,
increased to 1.20% for the three months ended December      which is expected to be completed by the end of the
31, 2018, up from 0.93% for the three months ended          second quarter of 2019.
December 31, 2017. The annualized return on average

                                                                 GROWING
equity (ROE) increased to 14.2% during the current
quarter, up from 11.6% during the fourth quarter of
2017. ROA increased to 1.31% during the year ended
December 31, 2018, up from 1.01% during 2017. ROE
increased to 15.8% during 2018, up from 12.7% during
the year ended December 31, 2017. Book value per share
increased to $26.97 at December 31, 2018, up $2.87
                                                                    WITH YOU.
from $24.10 at December 31, 2017.

    Craig S. Connor, Chairman and Chief Executive
Officer of CNB Community Bancorp, Inc. and County
National Bank, remarked, “2018 has proven out to be an
outstanding year for CNB, both in terms of growth and
earnings. It’s been especially rewarding watching our
hard working and talented staff contribute so mightily
to our very strong year.” Furthermore, County National
Bank President John Waldron stated, “Communities such
as the ones here in South Central Michigan have been
the backbone of our nation since before its inception and
they continue to provide the support that America needs
to be successful. Our bank has been committed to these
communities through several services such as personal
and small business banking for these last eighty-four
years. I look at 2018 with pride and thankfulness while
focusing on continuing to work with our communities in
2019 and beyond.”
                                                                                       LAKESTONEbank.com
    Great Lakes Banker • February 2019                                                                              17
KeyCorp Reports Fourth Quarter                               Isabella Bank Corporation
2018 Net Income Of $459 Million,                             Announces Fourth Quarter and
Or$.45 Per Common Share                                      2018 Results
     CLEVELAND, OH—KeyCorp (NYSE: KEY) announced                 MT. PLEASANT, MI—Jae A. Evans, President and
net income from continuing operations attributable to        Chief Executive Officer of Isabella Bank Corporation
Key common shareholders of $459 million, or $.45 per         (the “Corporation”) (OTCQX: ISBA), announced the
common share for the fourth quarter of 2018, compared        Corporation’s fourth quarter and year ended December
to $468 million, or $.45 per common share, for the third     31, 2018 earnings results. The Corporation reported net
quarter of 2018 and $181 million, or $.17 per common         income of $3.5 million or earnings per common share of
share, for the fourth quarter of 2017. During the fourth     $0.45 for the fourth quarter of 2018 and net income of
quarter of 2018, Key’s results included notable items        $14.0 million or earnings per common share of $1.78 for
resulting in a net impact of $.03 per common share,          the year ended December 31, 2018. Achievements in
consisting of a pension settlement charge and efficiency     the fourth quarter of 2018 and the year ended December
initiative expenses. No notable items were reported in the   31, 2018 include:
third quarter of 2018, however, notable items resulting
in a net impact of $.19 per common share were reported       •   2018 net income grew 5.9% compared to 2017
in the fourth quarter of 2017.                               •   Loan growth of $37.2 million during 2018
    For the year ended December 31, 2018, net income         •   $15.9 million deposit growth in the fourth quarter;
from continuing operations attributable to Key common            $27.4 million during 2018
shareholders was $1.8 billion, or $1.70 per common
share, compared to $1.2 billion, or $1.12 per common         •   Year-end cash dividend yield of 4.6% along with a
share, for the same period one year ago.                         1.96% increase in 2018 cash dividends paid
     “Key’s fourth quarter results marked a strong finish        Isabella Bank Corporation (OTCQX: ISBA) is
to a successful year for our company, as we continued to     headquartered in Mt. Pleasant, Michigan. Isabella Bank
grow, invest for our future, and deliver on our financial    was established in 1903 and has been committed to
commitments. We achieved our sixth consecutive year          serving the local banking needs of our customers and
of positive operating leverage, with a record $6.4 billion   communities for 115 years. The Bank offers personal
of total revenue and all-time highs in several of our fee-   and commercial lending and deposit products, as well as
based businesses, including investment banking and debt      investment, trust and estate planning services. The Bank
placement fees. Our expenses remain well-managed, as         has 30 banking locations throughout seven Mid-Michigan
we maintain our focus on efficiency, while continuing        counties: Clare, Gratiot, Isabella, Mecosta, Midland,
to invest in our businesses. We remain committed to          Montcalm, and Saginaw. The Corporation employs more
reducing expenses in 2019 and achieving our $200             than 400 individuals and has been recognized on the
million cost savings target.                                 Detroit Free Press list of “Top Workplaces” for the past
                                                             five years.
    “Importantly, our credit quality remains strong,
driven by our commitment to maintain a moderate risk             “We are pleased to share our successful results
profile and disciplined underwriting standards. In the       for the fourth quarter and full year 2018,” stated Mr.
fourth quarter, net charge-offs to average loans were        Evans. “While the interest rate environment continues
.27%, below our targeted range, and nonperforming            to present challenges for earnings growth, we were
loans declined over $100 million from the prior quarter.     successful in increasing our net interest income during
                                                             2018. Our focus continues to be on enhancing the
    “We have also delivered on our capital priorities,       customer experience and delivering superior service by
including returning capital to our shareholders.             offering a full array of competitive products and services.
Throughout 2018, we increased our common share               We remain committed to increasing earnings and
dividend 62%, and repurchased over $1.1 billion of           shareholder value through growth in our loan portfolio,
common shares. Despite the decline in the market and         growth in our investment and trust services, improving
continued volatility, we remain focused on delivering        our financial metrics, and managing operating costs.”
profitable growth and driving improved returns.”
18                                                                              Great Lakes Banker • February 2019
Middlefield Banc Corp. Reports Record Earnings for 2018
Full Year and Fourth Quarter Financial Results
    MIDDLEFIELD,     OH—Middlefield    Banc    Corp.            “In addition, I am pleased with the continued
(NASDAQ: MBCN) reported record financial results for        expansion of returns on average assets, equity, and
the three and twelve months ended December 31, 2018.        tangible common equity. Our financial results demonstrate
                                                            the continued success of our strategic growth plan and
     Middlefield Banc Corp., headquartered in               the business platform we have created.”
Middlefield, Ohio, is the bank holding company of The
Middlefield Banking Company with total assets of $1.25          “As we start the new year, we remain focused on
billion at December 31, 2018. The bank operates 15 full-    executing our growth initiatives, while continuing to
service banking centers and an LPL Financial® brokerage     maintain strong asset quality. I am encouraged by the
office serving Beachwood, Chardon, Cortland, Dublin,        prospects to improve our market share in Northeast Ohio,
Garrettsville, Mantua, Middlefield, Newbury, Orwell,        especially in Cuyahoga and Summit counties. In addition,
Powell, Solon, Sunbury, Twinsburg, and Westerville. The     as one of the few community banks in the Central Ohio
Bank also operates a Loan Production Office in Mentor,      market, we have a unique opportunity to provide a
Ohio.                                                       differentiated banking experience. Over the past two
                                                            years, we have significantly increased our scale within
    “Middlefield achieved multiple financial and            the Central Ohio market. I am excited by the potential
operating records during 2018 including assets, deposits,   of both markets and expect the productivity of our new
net income and book value per share,” stated Thomas G.      Powell and Sunbury locations to increase throughout
Caldwell, President and Chief Executive Officer.            the year. As you can see, we have a lot of opportunity
                                                            and we are excited by our growth prospects in 2019 and
                                                            beyond,” concluded Mr. Caldwell.

    Great Lakes Banker • February 2019                                                                            19
KeyCorp Declares Quarterly Cash F.N.B. Corporation Declares Cash
Dividend On Common Shares and Dividend on Non-Cumulative
Preferred Stocks; Sets Annual   Perpetual Preferred Stock, Series E
Meeting Date                       PITTSBURGH, PA—F.N.B. Corporation (NYSE:
                                                             FNB) announced that its Board of Directors declared a
    CLEVELAND, OH—KeyCorp (NYSE: KEY) announced
                                                             quarterly cash dividend of $18.13 per share (equivalent
that its Board of Directors declared the following
                                                             to $0.45325 per depositary share or 1/40th interest per
dividends for the first quarter of 2019:
                                                             share) on F.N.B. Corporation’s Non-Cumulative Perpetual
    KeyCorp’s roots trace back 190 years to Albany,          Preferred Stock, Series E (NYSE: FNB PR E). The dividend is
New York. Headquartered in Cleveland, Ohio, Key is           payable on February 15, 2019, to shareholders of record
one of the nation’s largest bank-based financial services    as of the close of business on January 31, 2019.
companies, with assets of approximately $138.8 billion
                                                                  FNB provides a full range of commercial banking,
at September 30, 2018. Key provides deposit, lending,
                                                             consumer banking and wealth management solutions
cash management, and investment services to individuals
                                                             through its subsidiary network which is led by its largest
and businesses in 15 states under the name KeyBank
                                                             affiliate, First National Bank of Pennsylvania, founded in
National Association through a network of over 1,100
                                                             1864. Commercial banking solutions include corporate
branches and more than 1,500 ATMs.
                                                             banking, small business banking, investment real estate
•    A cash dividend of $0.17 per share on the               financing, government banking, business credit, capital
     corporation’s outstanding common shares (NYSE:          markets and lease financing.
     KEY). The dividend is payable on March 15, 2019 to
                                                                  F.N.B. Corporation (NYSE: FNB), headquartered in
     holders of record of such common shares as of the
                                                             Pittsburgh, Pennsylvania, is a diversified financial services
     close of business on March 5, 2019;
                                                             company operating in six states. FNB holds a significant
•    A dividend of $312.50 per share (equivalent to          retail deposit market share in attractive markets
     $12.50 per depositary share (CUSIP #493267AK4))         including: Pittsburgh, Pennsylvania; Baltimore, Maryland;
     on the corporation’s outstanding Fixed-to-Floating      Cleveland, Ohio; and Charlotte, Raleigh, Durham and
     Rate Perpetual Non-Cumulative Preferred Stock,          the Piedmont Triad (Winston-Salem, Greensboro and
     Series D (CUSIP #493267603), payable on March 15,       High Point) in North Carolina.
     2019 to holders of record as of the close of business
     on February 28, 2019, for the period commencing
     on (and including) December 15, 2018 to (but            PNC Reports Full Year 2018
     excluding) March 15, 2019;
                                                             Net Income of $5.3 Billion,
•    A dividend of $15.3125 per share (equivalent to
     $.382813 per depositary share (NYSE: KEY.I)) on         $10.71Diluted EPS
     the corporation’s outstanding Fixed-to-Floating Rate        PITTSBURGH, PA—The PNC Financial Services Group,
     Perpetual Non-Cumulative Preferred Stock, Series E      Inc. (NYSE: PNC) reported for the first quarter of 2018
     (CUSIP #493267801), payable on March 15, 2019           net income of $5,346 million and diluted earnings per
     to holders of record as of the close of business on     common shares of $10.71.
     February 28, 2019, for the period commencing on             “2018 was a year for PNC. Earnings per share
     (and including) December 15, 2018 to (but excluding)    increased, and our returns on average assets and common
     March 15, 2019; and                                     equity were strong. Record revenue was driven by higher
•    A dividend of $14.1250 per share (equivalent to         net interest income and noninterest income, and we
     $.353125 per depositary share (NYSE: KEY.J)) on         generated positive operating leverage for the year. We
     the corporation’s outstanding Fixed Rate Perpetual      grew loans and deposits and expanded to new markets
     Non-Cumulative Preferred Stock, Series F (CUSIP         with our middle market corporate banking franchise
     #493267884), payable on March 15, 2019 to holders       and the successful launch of our national retail digital
     of record as of the close of business on February 28,   strategy. Supported by our strong capital and liquidity
     2019, for the period commencing on (and including)      positions, we are entering 2019 well positioned to create
     December 15, 2018 to (but excluding) March 15,          long-term value for our shareholders, said Bill Demchak,
     2019.                                                   PNC Chairman, President and Chief Executive Officer
20                                                                               Great Lakes Banker • February 2019
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