. . . IN THIS WEEK'S ISSUE:
  • IT'S ONLY ONE MONTH AWAY! Register Today For IBANYS' 2017 Annual Convention: The Power Of Community Banking  
  • ACTION ALERT: Urge The CFPB To Exempt Community Banks From Dodd Frank Section 1071 
  • Legislative & Regulatory Updates & Industry Trends
  • How The NYBDC's Excelsior Growth Fund Benefits Community Banks
  • Are Credit Union Execs Worried About Their Tax Exemption?
  • White Paper On Tax Recommendations: Strengthen Community Bank/Small Business Partnerships
  • And Much, Much More. . .

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

August 23, 2017
. . .Only One Month Until 
IBANYS' Annual Convention:

"THE POWER OF 
COMMUNITY BANKING"

That's right. . .In just one month, New York community banks, IBANYS preferred providers & associate members will gather for the Independent Bankers Association of New York State's 2017 Annual Convention September 25-27 in Niagara Falls, New York. It promises to be our best ever! Join us  for t hree days of business programs, recreational activities, networking opportunities and camraderie
  • Speakers and roundtables will focus on important issues and topics of the day... with opportunities for question and answer, dialogue and interaction. 
  • Our exhibitors conference will feature products and services to help New York community banks navigate today's business landscape and enhance their operations. 
  • Many of our traditional segments are back by popular demand, including our silent auction to support our political action efforts. NOTE: We need your donated items for the auction. Click here for details, or contact Linda Gregware for details. 
  • You'll enjoy our breakfast programs, receptions and dinner programs, and our six-minute presentations by preferred providers and associate members on important products and services for community banks. 
  • We'll also introduce new traditions: our "Innovation Showcase" highlighting new products and services to help community banks survive and thrive in today's marketplace; our "Emerging Leaders" welcoming the New York community banking industry's next generation of leaders, and a culinary school experience for spouses & guests sponsored by our good friends at The Bonadio Group. 
WHERE? Convention meeting rooms are in the Niagara Falls Convention Center, across the street from our sleeping room accommodations at
Sheraton at the Falls Hotel

HAVE YOU REGISTERED YET? We're confident that you'll find it to be a memorable conference in every way.  We hope to welcome you to Niagara Falls September 25 . Can we count on you to join us?  CLICK HERE   to register/for details on how to participate, to sponsor an event and/or exhibit in our  convention business show!

Don't Delay. . .REGISTER TODAY
   
Your Donated Items Needed 
For Our Silent Auction! 
Here is your an opportunity to help our New York community banking industry stay competitive in the state political process. Proceeds from our silent auction are used to support NYSIBPAC, IBANYS' state political action committee. NYSIBPAC contributes to New York State candidates and office holders who understand and support the vital role we play in our local and state economies, and the fabric of our communities. This is especially critical with a statewide election year ahead of us in 2018.
  • Donate A Gift! Showcase items from your region, or unique items others will enjoy. The gift donation is not tax deductible. Nationally chartered banks must donate through a holding company, an individual officer, or director. State chartered banks may donate directly, or through the holding company. IBANYS recommends a minimum value of $100 for each donation. All items shipped to IBANYS must be received by Friday, September 15. 
  • Please avoid gift certificates for specific values.  Participants tend to bid lower than the value stated on the certificates. Instead, consider donating a gift certificate for a specific item.
  • If you donate oversized, perishable or fragile items, consider providing pictures and/or marketing materials to advertise the item(s) during the auction, then ship the items themselves to the winning bidder once the convention is over.
  • Click here for a list of suggested items to donated -- and, to fill out and return to IBANYS the Auction Donor Information form found on page 11 of the convention registration packet. 

Thanks for your support of IBANYS Silent Auction, and of our political action efforts through NYSIBPAC.




. . .To Our Sponsors
IBANYS sends a special "thank you" to our early convention sponsors for their support of IBANYS, our convention and our industry -- 
during the convention and throughout the year:
  • Accume Partners
  • Atlantic Community Bankers Bank
  • BankSight, Inc.
  • CEIS Review
  • The Bonadio Group
  • Federal Home Loan Bank of New York
  • First Empire Securities
  • ICBA
  • Roosevelt & Cross
  • Sandler O'Neill
  • SHAZAM
  • Smith & Wilkinson
  • Strategic Resource Management (SRM)
  • Vitex, Inc.
  • Wolf & Company, PC
. . .And, To Our Exhibitors
Special thanks to our "early bird" exhibitor registrants for the business trade show. Be sure to visit them in the exhibition hall--see their booth numbers below. Visit our website at www.ibanys.net -- go to the Annual Convention tab under the education tab and click on "2017 Trade Show Floor Plan" to view booth availability.
  • Accume Partners (407)
  • BFS (302)
  • The Bonadio Group (516)
  • Bowers & Company CPA (512)
  • Federal Home Loan Bank of New York (400)
  • First Data Corp. (403)
  • First Empire Securities (307)
  • ICBA Securities (402)
  • Jack Henry Banking (304)
  • Kasasa (405)
  • M&T Bank (514)
  • Main Street, Inc. (404)
  • New York Bankers Association (201)
  • Promontory Interfinancial Network (301)
  • Pentegra Retirement Services (401)
  • SHAZAM (306)
  • Strategic Resource Management (101)
  • Vitex (406)
  • Wolf & Company, P.C. (300)
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An Update From President  & CEO John Witkowski On The  NYBDC'
Excelsior Growth Fund 
As budget season begins for most banks, I have been sharing information on a few companies that may be helpful for community banks, their employees and their customers (both commercial and consumer). Over the past 18 months, IBANYS has tried to provide value to our member banks by introducing innovative ideas that may prove helpful in the future. This week, we are focusing on Excelsior Growth Fund (EGF), the New York Business Development Corporation's (NYBDC's) nonprofit Community Development Financial Institution and IBANYS' exclusive online lending partner. As you know, I sit on the EGF Board of Directors, and am pleased to share the latest update on how it benefits community banks.
  • An Update from Excelsior Growth Fund, IBANYS' Exclusive Online Lending Partner
    Interest Rates for SmartLoan™ Now Reduced to 11.9%  When Excelsior Growth Fund (EGF), a New York based nonprofit Community Development Financial Institution, launched its fast, online loan product two years ago, they did so with the need of small business owners in mind. Today, entrepreneurs seeking capital no longer have to choose between speed and affordability when bank financing is not an option.  We are pleased to announce that EGF has made online loans even more affordable for small business owners by reducing their maximum interest rate to 11.9%. This is a small fraction of what a borrower would pay with a marketplace online lender, making EGF a great option for a small business owner who does not qualify with your banking institution or who needs a loan quickly.  With the prime interest rate on the rise, many small business owners will be paying more for capital. However, EGF's new rate ceiling of 11.9% means that your clients won't have to. In fact, they'll save hundreds of dollars each month on their debt payments and be able to put more money at work to grow their business. 
Interested in learning more?  Contact Bryan Doxford, Chief Lending Officer at Excelsior Growth Fund : bryan.doxford@excelsiorgrowthfund.org, or 212-430-4512.
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GOVERNMENT RELATIONS
   
ALBANY UPDATE:

"Zombie Law" In The News
A Staten Island newspaper article on the "zombie property law" notes that the "new state law meant to combat the blight of "zombie" homes across New York lacks effective enforcement to hold banks accountable for actually maintaining the properties on Staten Island." However, state officials responded that the law  is still new and that properties must be three months delinquent and another few months vacant to be covered.  State Department of Financial Services (DFS) Superintendent Maria Vullo noted:  "We've actually received...broad compliance from the banks and the servicers when we received a complaint about a particular property  -- again, in the short time frame when the law has been in effect." Click here to read the full article.
 
State Comptroller: Tax Collections Up
State Comptroller Tom DiNapoli said state tax collections increased last month by $88.2 million, increasing the state's revenue slightly above its initial projects.  "July was the first month in this fiscal year that personal income tax collections outpaced those from last year, which is a positive development. Federal receipts have grown, but that may change depending upon developments in Washington."  The year-to-year hike was due to federal receipts increasing by 7.9%, or $3.1 billion, and business tax receipts increasing by $245.9 million.  The general fund concluded July with $3.8 billion, or $3 billion lower than last year. Still, that's $16.3 million lower than the estimate. 


WASHINGTON UPDATE:

ICBA Tax Reform White Paper
ICBA released a white paper containing tax reform recommendations. Developed with input from community banks, it focuses on strengthening the community bank-small business partnership -- "the foundation for local economic growth and prosperity." The ICBA tax recommendations include:
  • allowing businesses to fully deduct interest expense
  • providing tax parity for financial services providers
  • modernizing Subchapter S of the tax code,
  • lowering the marginal tax rates on C-corps, S-corps and individuals
  • repealing the estate tax, and
  • preventing new taxes targeting commercial banks or their customers
Click here to read the ICBA press release on the white paper.

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Tell the CFPB: Exempt Community Banks From This Onerous Dodd-Frank Provision
Dodd-Frank Section 1071 requires the Consumer Financial Protection Bureau (CFPB) to implement rules for the collection and reporting of data on banks' small business loan applications.  This will impose a significant new burden on community banks who already must adhere to numerous regulatory requirements.  It will require HMDA-like data to be collected and reported, as well as the purpose of the loan; the race, sex or ethnicity of the business owners; and whether the business is minority or women-owned.  Section 1071 will have a chilling effect on lenders' ability to price for risk. This, in addition to the expense of data collection and reporting, may impact community banks' ability to provide affordable commercial lending products and curb access to small business credit, an engine of local economic growth and job creation. Ultimately, this would be harmful to community banks and problematic for small businesses and consumers who could bear the increase in the cost of compliance.
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Congratulations To Steve Gobel For 
50 Years Of Service! 
IBANYS is delighted to congratulate Stephen F. Gobel on the impending 50th anniversary of his service with the First National Bank of Groton. Steve, a longtime member of IBANYS' Board of Directors, began his career September 15, 1967 and has served as President & CEO since 1978. When he first joined the bank, it had just under $6 million in assets, $615,000 in capital and 10 employees. Today, it has over $170 million in assets, $23 million in capital and 41 employees. Steve's leadership has been a true asset to First National Bank of Groton, to IBANYS and to the New York community banking industry. Congratulations, Steve! 

Vining Sparks WEBINAR August 29:
"Good News From FASB: The New FASB 
Hedge Accounting Rules"
Please join this free update on the new FASB hedge accounting rules. The new rules improve and simplify hedge accounting and open the door to many new hedging strategies that will better align accounting rules with institutions' risk management activities - particularly for those with mortgage loans or MBS on the books. The one-hour webinar is designed to benefit portfolio managers, CFOs, CEOs/Presidents & Directors. It will discuss and illustrate the key hedging strategies that will soon be allowed by the new rules, and provide a brief update on LIBOR and what is known so far. The presenter will be Rick Redmond, Director of Balance Sheet Strategies with Vining Sparks, and Tommy Warren of Vining Sparks Interest rate Products.


Other Federal Updates Impacting 
Community Banks:
  • New data from the Federal Deposit Insurance Corp. shows the percentage of bank assets that won't mature or change rates for more than five years has reached a new high. Regulators warn that these types of long-term and real estate loans, which lock in low rates for long periods, could present difficulties for the banks if and when interest rates begin to rise. 
  • Bank regulators proposed  holding off on implementing stricter capital rules for smaller banks while the agencies review ways to simplify requirements for less complex institutions. Banks with less than $250 billion in assets (and less than $10 billion in foreign exposure) would be permitted to continue complying with simpler temporary capital rules beyond the beginning of 2018. 
  • Credit union executives met with Treasury Secretary Mnuchin and defended the credit union tax exemption. Secretary Mnuchin is leading the Trump administration's tax reform efforts, and credit union advocates are repoetedly concerned that policymakers could target their exemption from federal taxes. 
  • The U.S. Commerce Department reported that new home sales tumbled 9.4% to a seasonally adjusted annual rate of 571,000 housing money units in July, the lowest level since December 2016. The percentage drop was the largest since August 2016. Economists had expected a 0.3% gain. New home sales fell in the Northeast, South and West, rising only in the Midwest. New home sales, which account for 9.4% of overall housing sales, declined 8.9 percent on a year-on-year basis. A separate report from the Mortgage Bankers Association shows applications for loans to buy a house also decreased last week.
Have You Contributed To 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? 

We will hold our popular "silent auction" at our upcoming 2017 IBANYS Annual Convention in Niagara Falls (September 25-27) to support NYSIBPAC. Please donate items for the auction. Contact Linda Gregware: Lindag@ibanys.net.

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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




. . .The Bonadio Group
With offices in New York State and Vermont, The Bonadio Group provides a complete range of financial and consulting services - from auditing and tax, to multidimensional accounting, business advisory, and financial services. 
Bonadio has a team of local industry specialists who understand how banks work-many of their professionals have actually worked at banks themselves. They understand the regulations, know the IT ramifications and can help you maintain a sound organization by offering a wide variety of bank-related auditing services. 
Bonadio understands the specialized services financial firms require. Of course, they offer impeccable financial statement audits, but their extensive offering covers every issue a financial institution faces, such as:
  • Risk management services, from IT audits to IT penetration testing
  • Loan reviews and fraud investigations
  • Bank and federal reserve regulatory filings
  • Sarbanes-Oxley compliance
  • Initial public offerings
  • Private placements memorandums
  • Mergers and acquisitions
The Bonadio team is best known for its combination of practicing to the highest standards and taking a proactive approach with banking industry clients. For information, visit the website at www.bonadio.com, or contact Jamie Keiser, Partner & CPA at (315) 214-7562, jkeiser@bonadio.com. 

 
. . .That seven New Yorkers have been elected President of the United States? They are Martin Van Buren, Millard Fillmore, Chester Arthur, Grover Cleveland, Theodore Roosevelt, Franklin Roosevelt and Donald Trump.

ANSWER TO LAST WEEK'S TRIVIA QUESTION
Sal Marranca (Cattaraugus County Bank) and John Buhrmaster (1st National Bank of Scotia) are the two New York community bankers who have chaired both the Independent Bankers Association of New York State  and the Independent Community Bankers of America.

 

 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 former 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