Your IBANYS Team: 
Working Together To Make 2017 A Great Year 
For New York C ommun ity Banks !
 
In This Issue

Quick Links


Have You Contributed to NYSIBPAC This Year?
If not...now is the time! We need your help in this statewide election year to support candidates and committees who understand community banks' needs.  Can we count on you?
CLICK HERE
for our 2017 PAC contribution form. Help support IBANYS' political action efforts in New York State.

Partner

April 6, 2017

Action Alert: 
Tell The NCUA "Enough Is Enough"
New York Community Bankers: ICBA and IBANYS urge you to tell the National Credit Union Administration (NCUA) " enough is enough" and that their proposed rule on alternative capital is the third strike. 
  • Credit unions' nearly unchecked commercial lending powers and field of membership are already an abuse of their costly and unfair tax subsidy. 
  • The NCUA's proposed rule on alternative capital would undermine credit unions' mutual ownership structure, allow outside investors to leverage the tax subsidy, and fuel runaway growth of an industry that has already outgrown its original purpose.

The NCUA should focus on the intended mission of credit unions: "serving people of modest means through a mutual ownership structure". The time is ripe for Congress to reexamine the tax-exempt status of credit unions.  Credit unions and the NCUA have struck out! Credit unions have become banks, and  must be taxed like banks. . .

CLICK HERE to send a letter to the NCUA today and oppose the proposed alternative capital rule.


IBANYS' Busy Educational Calendar 
Continues Through Spring!
This week, IBANYS held regional Directors Conferences in Rochester and the Capital District for board members and senior management of New York community banks. They followed on the heels of our March compliance seminars. Together, they constituted a successful 2017 educational calendar for our member banks. Speaker presentations from these are (or soon will be) available on our website at www.ibanys.net. 

We are far from finished providing New York community banks with timely, comprehensive programming. Over the next two months, IBANYS will host/participate in three more important programs. Take a moment to review them:
 
IBANYS' "March On Washington Includes 
Key Meetings On "The Hill"
Our annual visit to Washington, D.C. and ICBA's Capital Summit will take place April 30 - May 3, with key congressional advocacy meetings set for May 2. If regulatory relief, access to capital, regulatory and tax relief, mortgage reform and agricultural lending are at the forefront of your mind, this meeting is for you! Join your fellow community bankers to advocate for our priority issues, including the passage of ICBA's "Plan for Prosperity" regulatory relief agenda IBANYS has endorsed. It's our once-a-year chance to meet with New York Congressional Delegation in their offices "on the hill" on Tuesday, May 2 , such as  Senator Schumer  and key Members of the New York Congressional Delegation--including several on the House Financial Services, Small Business and Agricultural Committees. S ign up at icba.org , then  email Steve Rice (Stever@ibanys.net) to sign up for congressional visits. 


UPDATE: 
Treasury Secretary Mnuchin, Financial Services Chair Hensarling To Address Capital Summit!  
Secretary Steven Mnuchin, who recently met at Treasury with community bankers, joins House Financial Services Committee Chairman Jed Hensarling (R-TX) as the featured speakers. Hensarling is the sponsor of the Finaccial CHOICE Act that offers an alternative to Dodd-frank regulations. . .You can still r egister:  CLICK HERE

IBANYS' Lending Conference To
Focus On All Aspects Of Process
IBANYS 3rd Annual Lending Conference, co-sponsored with T.Gschwender & Associates, will be held May 9-10, 2017 in  Syracuse, N.Y. In today's rate environment and market conditions, the lending and credit process presents opportunities and challenges to New York community banks. There is significant competition and increased regulatory oversight and compliance mandates in mortgage lending, consumer lending, commercial lending and small business lending. We will examine lending avenues available to local independent banks and their bottom line impact.  Speakers will discuss the evolving digital and mobile lending landscape, managing credit risk, ALLL, building portfolios, enhancing growth and much, much more. Participants can earn up to 10 CPE credits. Please note: A block of rooms is reserved at the Marriott Syracuse Downtown hotel. Contact Marriott reservations at (800) 228-9290, and refer to "Independent Bankers Lending Conference". Roomblock cut-off date is Monday, April 17. 
So, w ho should attend? 
  • Loan Officers
  • Mortgage Officers 
  • Consumer Lending Officers
  • Commercial Lending Officers 
  • Credit Officers 
  • CFOs 
  • Other members of management who are involved in their credit and lending process. 
Click here to register. Click here for sponsorship opportunities.

IBANYS CFO/Senior Management Conference:
Strategic Insights, Key Updates
The role of the bank CFO, controller, treasurer or cashier  is tougher than ever. Financial strategies are continually  evolving in an effort to determine the best path for  achieving earnings. Whether it is growing your loan  portfolio or simply finding new fee income, the challenge  to create acceptable ROA and ROE performance is as diffi cult as we have seen for nearly 20 years.  The 2017 CFO & Sr. Management Conference (June 7 - 9 at West Point, N.Y.) will provide strategic insights and critical industry updates you need to lead your bank to success. Experts will discuss  state and national economic trends, ac counting principles, interest rate risk, capital planning,  CECL updates and other relevant topics. Attendees  can earn up to 10 CPE Hours (1.0 in taxation) and discuss  topics that community bank  chief financial officers have repeatedly requested   Who should attend? CEOs, CFOs, COOS, Presidents & Senior Managers, Directors & ALCO teams, Controllers, Treasurers & Cashiers.  . . CLICK HERE for program details/to register, and HERE for sponsorship information.

board conference
. . .And, Don't Forget These Upcoming Webinars  & Seminars

New England College of Business 
Online Consumer Credit Course  
Designed for banks and credit unions with small credit departments, this online Consumer Credit course from New England College of Business (NECB) is a convenient training option focusing on how to make appropriate consumer loans using a decision-making process that includes interviewing, investigating and loan product knowledge.  This special eight-week course is offered only once in 2017, starting May 1.  If applicable, three credits may be awarded toward an academic degree program.   For details, contact Mike Gunther: (518) 331-9677 michael.gunther@necb.edu.

"CRA Training 101 For Bankers"
Mark your calendar for the "Interagency CRA 101 Training for Bankers" on next Thursday, April 20 (8:30 a.m. to 4:00 p.m.) -- offered jointly by the FDIC, OCC and NYS DFS. It will be held at the FDIC offices at 350 Fifth Avenue in Manhattan (Suite 1200). Watch for formal invitations from the regulators. For information, contact Yulitza Franklin, Principal Community Development Analyst at NYS DFS:  (212) 709-1699, yulitza.franklin@dfs.ny.gov.
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GOVERNMENT RELATIONS
new york state capitol
ALBANY

State Budget Approved, Nine Days Late
After six years of "on-time budgets" under Governor Cuomo (although several technically missed the March 31 deadline by hours) the 2017-18 state budget was adopted nine days late.  CLICK HERE to review the status of the budget sections and provisions IBANYS was engaged on because they would directly impact New York community banks.
 
Legislators left the Capitol after approving the last bills on Sunday evening, are on "Easter recess" and will likely return to Albany Monday, April 24.
Some highlights of the budget include: 
  • The "Affordable New York Housing Program" will annually generate 2,500 units of housing affordable to poor. working-class and middle-class New Yorkers. 
  • The $153.1 billion spending plan also contains non-budget provisions raising the age of criminal responsibility and allowing ride-hailing companies like Uber and Lyft to operate outside of New York City.  State Comptroller DiNapoli expressed concern the budget lacked "needed reforms" to the state's procurement process. 
Upstate: "Roaring Back To Life"?
Gov. Cuomo in Rochester Tuesday said economies in upstate New York "are roaring back to life" and discussed how the state plans to keep "moving forward'' on the recently passed $153 billion budget. However, a spokesperson for the organization  "Reclaim New York" disagreed, noting: "In just the last week, New York sank to 50th in taxes, and (the Governor's) economic development strategy was branded the most expensive, least effective in the nation." Cuomo spokesman Rich Azzopardi countered the budget "cuts taxes for 320,000 middle class families in the Finger Lakes, empowers local governments to cut costs and lower property taxes once and for all and doubles the childcare tax credit."  Meanwhile, Rev. Al Sharpton and retired Harlem Rep. Charles Rangel claimed that Governor  Cuomo has emerged as the "early favorite" for the 2020 Democratic nomination for president.  Rangel stated: " I cannot think of anyone at this time who is better qualified."


WASHINGTON, D.C.

Sign The Petition: 
Urge Meaningful  Regulatory Relief
ICBA wants community bankers, employees and customers to urge meaningful regulatory relief by signing a petition supporting the  Plan for Prosperity (PFP). IBANYS has endorsed the PFP, and we encourage all New York community banbkers to take action by clicking on the following link: http://bit.ly/2lYdRJU

President Vows Major Streamline Or Elimination Of "Horrendous" Dodd-Frank Regulations
President Trump yesterday told a meeting of business executives and his cabinet members: "We're going to reduce taxes, we're going to eliminate wasteful regulations...For the bankers in the room, they'll be very happy because we're really doing a major streamlining and, perhaps, elimination, and replacing it (Dodd-Frank) with something else. That will be the minimum. But we're doing a major elimination of the horrendous Dodd-Frank regulations, keeping some obviously, but getting rid of many."  Earlier this year, the President ordered reviews of the major banking and Wall Street rules enacted after the 2008 financial crisis. Just last week, he reiterated that officials were planning a "major haircut" for the regulations.

Hensarling Details Dodd-Frank Replacement
House Financial Services Chairman Hensarling has detailed changes to his Dodd-Frank replacement proposal. The bill could ease a number of heightened regulatory standards enacted through the 2010 Dodd-Frank financial-overhaul law.A summary of the forthcoming bill notes it would make the Consumer Financial Protection Bureau director removable at the president's will and strip the agency of its supervisory powers, in addition to easing regulations for banks that meet a certain capital threshold. It proposes regulatory relief for banks if they hold enough capital. 



New York's Tax Incentives: "Most Expensive, Least Effective" In Nation?
Economist Timothy Bartik (W.E. Upjohn Institute for Employment Research) estimates New York awarded $8.25 billion in tax incentives in 2015, and said they are the most expensive and among the least effective in the nation. In comparison to those of the 10 most populous states in the country, they cost as much as those of the next three states combined. T he Citizens Budget Commission of New York commented a majority of the research published to date shows that tax incentives either have no measurable economy-boosting effect, or have high costs per job created. Both the State Assembly and Senate called for new disclosure requirements to track the spending and results of economic development programs, but the reforms didn't make it into the final budget.

Job Openings At Seven Month Low
The U.S. Labor Department reported yesterday that U.S. job openings reached a seven-month high in February. The pace of hiring slipped, as j ob openings (a measure of labor demand) increased 118,000 spots to a seasonally adjusted 5.7 million. That lifted the jobs openings rate to 3.8% after it had held steady at 3.7% for four consecutive months. However, hiring slipped to 5.3 million in February (from 5.4 million in January) and the hiring rate dipped to 3.6% from 3.7%  the prior month. The U.S. labor market is now viewed as being near or at full employment, with the unemployment rate sitting at a near 10-year low of 4.5%.  Federal Reserve Chair Janet Yellen said the Fed's  plans to raise U.S. interest rates gradually are aimed at sustaining full employment and near 2% inflation without letting the economy overheat.   "I think we have a healthy economy now,"  Yellen  said. Unemployment, at 4.5%, is just below the jobless rate most Fed officials view as "full employment," and inflation is "reasonably close" to the Fed's 2% goal.

New Data On Credit Card Use
A new survey by CreditCards.com found 17% of people have used their cards to buy something that costs under $5, up from 11% last year. It appears that millennials (21%) were the generation most likely to use credit cards for small purchases, followed by Generation X (16%) and baby boomers (12%).  Overall, nearly 60% preferred plastic to buy things totaling over $500, compared with 24% who used a debit card, 10% who pay with cash and 8% who pay by check.  On average, Americans make about five purchases of more than $500 each year.

Mortgage Delinquency Rates Are Down
According to the latest monthly "Loan Performance Insights Report" from CoreLogic, mortgage delinquency rates (including loans in serious delinquency and foreclosure inventory) declined at the start of 2017. In January, 5.3% of mortgages were delinquent by 30 days or more, a drop of 1.1 percentage points from January 2016. 


April is Community Banking Month 
...When we traditionally celebrate the many contributions of community banks throughout New York State, and across the country.  Each year, ICBA develops material designed for community banks to spread the word about the benefits and advantages of banking locally and supporting locally-owned businesses. Want to learn more? Visit https://www.icba.org/go-local  to review information and stories on the value of banking, shopping and dining locally. ICBA has put together a "Community Banking Month Toolkit" . . . Visit the www.icba.org/srpresources webpage We hope you join us in promoting Community Banking Month. Let us know if you have any questions or require additional information.

Please Support NYSIBPAC. . .
This year brings a challenging legislative session, with new chairmen of both the State Senate and State Assembly Banks Committees. Many of our competitors within the financial services industry operate very well-funded political action committees, and we need your support to ensure community banks remain an important part of the political process and debate. We have placed an updated 2017 NYSIBPAC contribution form in the column along the left border of this newsletter.  Can we count on your support?

MEMBER SERVICES & BENEFITS

 
IBANYS identifies offers products and services  that provide value to your banks, companies, employees communities. These brief summaries provide links for information. Please contact IBANYS President John Witkowski with questions. 

Health & Wellness 
The health and wellness landscape continues to evolve. "My Wellness Resource" can be a nice addition to your existing benefit package.   C ontact Alan Justin at (716) 907-5500  or visit:  http://nbibanys.phecard.com.

. . .An IMPORTANT UPDATE: 
We are pleased to inform HR & Benefits Representatives of IBANYS member banks about a new offer available to their banks.  Offered through IBANYS' partner at My Wellness Resource is a unique program providing a $500 rebate on any new Fiat, Chrysler, Dodge, Jeep, Ram or Hyundai vehicle. Those firms comprise approximately 19% of all car and truck sales in the US market.  The rebate is independent of, and may be combined with, any other offer available to your employees, so it's a true cash rebate that is not available through dealerships. Employees negotiate their best deal at the dealership of their choice including other rebates, cash back offers, etc., then apply for and receive this $500 rebate after their new car purchase or lease. The program may only be  offered though individual banks, not through IBANYS itself. Therefore, if it's something you think your bank and employees might be interested in, drop a line to us and we will forward it to our contact at My Wellness, Alan Justin, who will reach out to you with  the details. 
We only ask that if you are not currently participating in the My Wellness Resource program, that you take a fair & objective look at the program!

Secure, Enhanced Internet Presence
The .bank program by fTLD operates trusted, verified, more secure and easily-identifiable locations on the Internet for financial companies and the customers they serve. Visit www.icba.org/SRPArticles<http://www.icba.org/SRPArticles> page 

Online Lending
Excelsior Growth Fund (EGF) is NYBDC's nonprofit Community Development Financial Institution and IBANYS' exclusive online lending  partner . Visit 

Battle Against Prostate Cancer
Cure the Blue" raises funds and awareness regarding prostate cancer in New York State. Visit www.curetheblue.com to get involved!  
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IBANYS Webinars 
For  New York Community Banks:
Is YOUR Bank Participating? 
New York's community banks face an array of challenges -- and, opportunities! Bank officers, board members and employees need to stay fully informed and up-to-date. . . on their responsibilities -- and, their potential liabilities. Community bankers need the proper information and tools to effectively do so, and to execute their business and strategic plan to prepare for the future.  Here's one important, convenient way to do this:  IBANYS' 2017 webinars. These presentations are designed to meet the needs of New York community banks. The programs are both effective and cost-effective. . . and participating couldn't be easier! Community bankers can do so from their own offices. The number of participants has dramatically increased over the past few years. Is your bank among those who have benefited?  If not, find out why so many of  your industry and association peers are taking advantage of these webinars. R eview upcoming programs link below:
https://financialedinc.com/a/ibanys/category/live

. . .  
Smith & Wilkinson
Smith & Wilkinson clients range from publicly traded commercial banks, to mutual savings banks serving rural communities. With assets ranging from $100MM to $100B, they represent the breadth and diversity of our country's banking system. W hat they all share is a commitment to hiring the best and the brightest, not just the most readily available candidates on the market.
Smith & Wilkinson clients value talent; they know it is their employees that make the difference between success and mediocrity.  They choose Smith & Wilkinson because they recruit outstanding passive candidates on their behalf, and because of the firm's commitment to providing a consistent and professional client experience.  Smith & Wilkinson's exceptional team of recruiters are experts and specialists in their individual practice areas, not generalists jumping between markets. This allows them to bring peer-to-peer insight and industry expertise, and deliver exceptional results and service. . . 
"Discretion. Access. Insight. Smith & Wilkinson."

For details, contact: 
Cameron Boyd Partner: (207) 289-3129, 
cboyd@smithandwilkinson.com. . .

 
. . .That the New York State Division of the Budget officially came into existence on January 1, 1927?   T he State Constitution was amended to give the Governor responsibility for submitting an "annual, comprehensive and balanced plan of revenues and expenditures and prohibit the Legislature from acting on other spending measures before acting on the Executive Budget".  These reforms made the Governor the chief architect of the State's budget, accountable for the development and administration of the legislatively-approved budget, and led to the evolution of a strong centralized Budget Division. In January 1928, Governor Alfred E. Smith submitted the first budget prepared under the current Executive Budget process.


 

 New York community banks play a key role in our state and local economies. Help spread the good news among your customers, business and elected leaders and media!

Click here for quotes from Governor Cuomo and DFS Superintendent Lawsky extolling the performance and value of New York community banks.

Click here for the full NYS Study on community banking.

Click here to read IBANYS President & CEO John Witkowski's comments on the new tax changes and benefits for New York community banks as approved in the 2014-15 State Budget.

 

Click here for IBANYS' letter to the Editor of Consumer Reports Magazine correcting failure to mention community banks as an alternative to using "big banks."

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John J. Witkowski
President and Chief Executive Officer
 
Stephen W. Rice
Director of Government Relations and Communications

Linda Gregware
Director of Administration and Membership Services 

William Y. Crowell, III
Legislative Counsel