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

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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.

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April 6, 2017

 
TWO LEAD ITEMS: ONE FROM ALBANY, ONE FROM WASHINGTON

UPDATED: LATE DEVELOPMENT ON 
STATE BUDGET NEGOTIATIONS

State budget negotiations ended late Wednesday afternoon (after our newsletter was published), and according to press reports, will likely remain in limbo through the Legislature's two-week Easter recess. At an evening  press conference, the Governor listed three " sticking points" blocking an agreement: Raising the age of criminal majority, charter school funding, and the 421(a) tax program. The Governor blamed the federal government, noting he does not "want to do a budget" that is "over-committed" in light of "inevitable" federal cuts. He again suggested he be given the ability to  make midyear changes to the budget in the name of "financial flexibility." (The Legislature has previously rejected that idea.) 

T he Assembly and Senate both adjourned for the day. Senate GOP Majority Leader Flanagan (R-L.I.) sent his members home and stated:  "We'll come back when there is a deal."  Assembly Speaker Heastie (D-Bronx) disagreed with the Governor that a deal wasn't within immediate reach, and said the Assembly  planned to remain  at the Capitol today to continue working toward an agreement. Senate Democratic Leader Stewart-Cousins (D-Westchester) noted "dysfunction and chaos" have descended on Albany.
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For the first time since Governor Cuomo took office, the state budget was not approved by the April 1 deadline. Early this week, the Governor  said  there was no rush  to finish passage of a complete budget since on Monday, legislators passed a two-month extender to keep the state operating. The extender funds state government through May 31. However, by late Tuesday a budget deal appeared mostly  in place that would reportedly keep taxes flat, increase public education spending by $1 million, raise college tuition assistance, invest $2.5 billion in the state's aging water infrastructure, allow ride-hailing apps like Uber and Lyft to expand their services outside New York City, and include a two-year extension of the "millionaires tax" set to expire at yearend. It may include a workers' comp reform package that will reportedly "save businesses $700 million". The Senate began passing budget bills last night, approving six budget bills (the ELFA, HMH, PPGG and TED bills and bills to fund the Legislature and Judiciary and aid to localities). The Assembly began doing so this morning. However, the long-awaited revenue bill, which some sources caution contains the most controversial elements of the spending plan, was still being awaited. LATE UPDATE: There is now talk of "a blowup" on some issues, and Assembly members have been told things could go on until Friday. Also, no one has seen school aid runs with the details on state aid to education. Stay tuned. . .

Fireworks As CFPB's Cordray Testifies Before House  Financial Services Committee
  • Consumer Financial Protection Bureau (CFPB) Director Cordray testified today before the House Financial Services Committee for the first time since the Trump administration Cordray testifies took office, and it was a confrontational hearing. Director Cordray noted: "As the independent consumer watchdog, we are solely focused on the job Congress gave us of assuring that these markets are fair, transparent, and competitive and consumers have access to sound financial products and services ...Those who talk about weakening the Consumer Bureau are missing the importance of the work we are doing to stand up for individuals and families all over this country... Nobody should want to return to a system that failed us and produced a financial crisis that damaged so many lives." 
  • Committee Chairman Jed Hensarling (R-TX) called on President Trump to fire Director Cordray immediately: "For conducting unlawful activities, abusing his authority and denying market participants due process, Richard Cordray should be dismissed by our President." He also said the CFPB itself should be eliminated. "American consumers need competitive markets and a 'cop on the beat' to protect them from fraud and deception. They don't need Washington elites trampling on their freedom of choice and picking their financial products for them."
The overall tenor of today's hearing was captured in this press item: "After several Republicans on the committee laid into Cordray, Rep. Capuano, D-Mass., appeared bewildered by his colleagues' hostility. 'Mr. Cordray, boy, they really hate you, don't they?" Capuano said. "They don't want to give us any credit for anything good that we do, I understand that," Cordray replied. "That's part of the game."

While Dodd-Frank  states the president can't fire the director without cause, a ruling in a court case questioning the constitutionality of the bureau having a single director said the president has authority to fire the director. The CFPB challenged the ruling and was granted a rehearing in May. Again: Stay tuned. . .

IBANYS Is Proud To Have These Outstandinbg Firms In Our. . .


Wolf & Company, P.C.
Risk Management Services
www.wolfandco.com
  • IT Assurance & Security Services
  • Outsourced/Co-sourced Internal Audit Services
  • Regulatory Compliance Services
  • WolfPAC Risk Management Services 
Pentegra Retirement Services
Retirement Services
  • Non-Qualified Plans
  • BOLI
  • Qualified Plans
  • Retirement Plan Services Retirement Services
T.Gschwender & Associates, Inc.
Credit Risk Management
  tgschwender-assoc.com
  • Pre-Funding Due Diligence
  • Loan Portfolio Management
  • Problem Loan Management
Visit their websites. Learn why so many New York community banks have learned first hand the value they can bring to their institutions!



Over the next three months, IBANYS will host: 
  • Regional Directors Conferences April 11 in Rochester and April 12 in the Capital District: CLICK HERE for full program details and to register. 
  • our Lending Conference May 9-10 in Syracuse. CLICK HERE for details and to register, and CLICK HERE for sponsorship opportunities.
  • and, our CFO/Senior Management Conference June 7-9 at The Thayer Hotel at West Point. CLICK HERE 
    for details and register. CLICK HERE for sponsorship opportunities.
  • If access to capital, regulatory and tax relief, mortgage reform and agricultural lending are at the forefront of your mind, ICBA's Capital Summit is the place to be. New York community bankers will travel to the  nation's capital to participate April 30 - May 3. Join your fellow community bankers to advocate for change in these, and other, issue areas through passage of ICBA's "Plan for Prosperity" that IBANYS has endorsed. By coming together and espousing the community bank message, we will seek meaningful regulatory relief and positive change happen for our business, our customers and our communities. It's our once-a-year chance to meet with New York Congressional Delegation in their offices "on the hill" on Tuesday, May 2 to meet with Senator Schumer, the office of Senator Gillibrand and key Members of the New York Congressional Delegation, including members of the House Financial Services, Small Business and Agricultural Committees. Sign up at icba.org, then email Steve Rice (Stever@ibanys.net) to sign up for congressional visits. 
. . .Take a moment to review details on these important upcoming meetings. . .

  
Sign Up Today For IBANYS Regional Directors Conferences On April 11-12   

Next up for New York Community bankers: IBANYS' bank directors' regional conferences, designed for bank directors, CEOs, CFOS and senior management teams. Community bank directors must cope with evolving customer demands, contending with shrinking margins and reduced fee income -- and dealing with increased regulatory burdens and costs. Bank directors need to help their institutions navigate 2017's new landscape.  IBANYS' Directors Conferences on Tuesday, April 11 (Rochester) and Wednesday, April 12 (Capital District) are one-day sessions on a number of timely issues, including the latest Enterprise Risk management (ERM) developments. We'll provide tools to help directors identify what they must know concerning regulation, oversight and strategic planning to enhance their banks' growth and profitability. Note: Attendees can earn up to 7.5 CPE credits. Speakers include.
CLICK HERE  to register.  

CORRECTED INFORMATION ON 
LENDING CONFERENCE

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 or small business lending. IBANYS' conference will examine some lending avenues available to local independent banks, and how they can impact your bank's bottom line. An outstanding slate of speakers will discuss the evolving digital and mobile lending landscape, managing credit risk, ALLL, building portfolios, enhancing growth and much, much more. Who should attend? Loan Officers, Mortgage Officers, Consumer Lending Officers, Commercial Lending Officers, Credit Officers, CFOs and other members of the bank's management team involved in their credit and lending process. 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". . .the roomblock cut-off date is April 17. . .  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.) is designed to provide strategic insights and critical industry updates you need to lead your bank to success.  An  impressive line-up  of national experts will discuss  NYS and national economic trends, ac counting principles, interest rate risk, capital planning,  CECL updates and other relevant topics. Note: Participants can earn up to 10 CPE Hours (1.0 in taxation, and gain a wide variety of information  from expert speakers on topics that community bank  chief financial officers have repeatedly requested, and  return to the bank ready to implement newly found ideas and knowledge.  Who should attend? CEOs, CFOs, COOS, Presidents & Senior Managers, Directors & ALCO teams, Controllers, Treasurers & Cashiers.

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 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

ALBANY
As described in an article above, the state budget was the focus of the Legislature and the Governor this week, as the April 1 deadline was missed but a deal appeared to be in place and ready for enactment by later today or tomorrow. Once the budget is approved, the Legislature will leave for its annual "Easter recess" before returning to Albany on Monday, April 24.

WASHINGTON, D.C.
Latest Federal Developments  
  • Yesterday, ICBA urged Congress to support agricultural programs that help community banks serve rural America amid a steady deterioration in farm incomes. In testimony to the House Agriculture Subcommittee on Commodity Exchanges, Energy and Credit, ICBA asked Congress to provide adequate funding, raise loan limits to reflect the higher cost of modern agriculture, minimize origination fees and paperwork requirements, and provide uniform requirements in financing USDA loans across state lines in addition to other recommendations.
     
  • Rep. McHenry (R-N.C.), a senior member of the House Financial Services Committee and a member of House Republican leadership, said the House is unlikely to vote on a Dodd-Frank overhaul bill before summer. McHenry, who's also a member of the House GOP leadership, said a vote is possible in June or July. 
  • Outgoing Federal Reserve Gov. Tarullo said the industry's position that the Volcker Rule ban on proprietary trading is too complicated for compliance has merit. "Several years of experience have convinced me that there is merit in the contention...that, as it has been drafted and implemented, the Volcker rule is too complicated." He said regulators should make revisions to the Dodd-Frank regulation. 
  • The Senate Banking Committee on Tuesday approved the nomination of Jay Clayton to lead the Securities and Exchange Commission, with mixed support from Democrats. His nomination now goes to the full Senate for a confirmation vote.
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


  • According to New York Federal Reserve Bank President William Dudley, high delinquency rates on student loans are cause for concern in the long run. A New York Fed report found student loan delinquency rates climbed to 11.2% in the last quarter of 2016, which was the highest rate for all types of household debt. 
  • Jeffrey Lacker, the President of the Richmond Federal Reserve Bank for 13 years, resigned yesterday after disclosing he had leaked sensitive information that triggered a criminal legal probe. He was a source of material for a report by Medley Global Advisors in 2012 on the Fed's plans.
  • The University of Michigan Consumer Sentiment index fell to 96.9 in March, lower than expected. The monthly survey measures attitudes on such topics, as personal finances, inflation, unemployment, government policies and interest rates. The result was lower than anticipated.  A spokesman noted, "The data indicate that real consumer spending will advance by 2.7% in 2017, but those gains will be uneven over time and across products." Consumer sentiment dropped to 96.3 in February, from 98.5 the previous month.
  • ADP and Moody's Analytics report that companies added 263,000 jobs for the month, well above the 185,000 expected from economists surveyed by Reuters and better than the 245,000 reported for February. However, the February number was revised significantly lower from the originally reported 298,000. In terms of company size, businesses with fewer than 50 employees saw the biggest growth with 118,000; firms employing between 50 to 499 workers added 100,000. The Labor Department will release its employment report for March later this week.
  • Quote Of The Day: "Essentially, too big to fail has been solved - taxpayers will not pay if a bank fails...The American public has the right to demand that if a major bank fails, they, as taxpayers, would not have to pay for it, and the failure wouldn't unduly harm the U.S. economy...In my view, these demands have now both been met." (JPMorgan Chase CEO Jamie Dimon, in his annual shareholder letter released yesterday.)

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

. . .
RidgeLogic Development 
RidgeLogic provides digital signage software applications, content design and programming services to meet the needs of end users, resellers and OEM partners. We are committed to helping people tell a multimedia story that can be shared with family, friends, customers or staff. The executive team at RidgeLogic has many years of experience in the digital signage industry. We have designed content, installed products at end user locations, built sales channels and developed relationships with major hardware vendors. This experience provides our team a comprehensive understanding of our industry and the ability to deliver total solutions.  Contact  Dave Hastie : (716) 863-4706, dhastie@ridgelogic.com or visit the website at  www.ridgelogic.com.

 

April is Community Banking Month?
Did You Know That. . .
  • Community banks constitute 96 percent of all banks!
  • There are more than 600 counties-almost one out of every five U.S. counties-that have no other physical banking offices except those operated by community banks.
  • There are more than 51,000 community bank locations nationwide.
  • Community banks hold more than $3.9 trillion in assets, $3.1 trillion in deposits, and $2.6 trillion in loans to consumers, small businesses and the agricultural community.
  • Community banks employ 700,000 Americans and create countless jobs thanks to their role in lending to small businesses and agricultural enterprises.
  • Community banks make more than 50 percent of small business loans.
  • Community banks make 90 percent of agricultural loans.
  • More than 2,500 community banks have been in business for more than 100 years.
  • The oldest community bank in the nation is 215 years old. It opened the year that John Adams was elected our seconf president. 
  • As New York Governor Andrew Cuomo has noted: ""Community banks represent a strong economic engine that drives growth in New York and their performance is remarkable. Small business is the engine of job growth and most small business loans come not from the big national banks, but from community banks."
  • As the NYS Department of Financial Services noted in its Community Banking Report: "Community banks provide most of the loans for New York's small businesses and farms and are thus essential to job growth and the strength of the state economy. Even though community banks have less than a quarter of all bank assets in New York and are competing against much larger national banks, they generate more than half of all small business loans and almost all the small farm loans in the State. 



 

 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."

_________________________________

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