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

February 1, 2017
February brings new updates and challenges and activities for New York community bankers, and for IBANYS.  This week:
  • We met with the new Chairmen of the State Senate and Assembly Banks Committees, Sen. Jesse Hamilton and Assemblyman Ken Zebrowski, to discuss the importance and priorities of community banks.
  • We held our Government Relations Committee conference call to review and discuss the language in the Governor's budget proposal impacting our industry, and issues related to the DFS zombie property reg exemption and ADA website compliance. 
  • We continued building the program for next month's Regional Compliance Seminars (we've added FDIC Regional Director John Vogel and Compliance Deputy Scott Strockoz!)
  • We also join with ICBA to urge New York Community bankers to contact their local congressional representatives to urge them to support repeal of the Durbin amendment price controls on debit interchange. Visit icba.org and go to the advocacy/Grassroots Be heard tabs to take action! 
Read about all this, and much more, in this week's newsletter.  .  .
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GOVERNMENT RELATIONS

ALBANY

IBANYS Meets With New Senate, 
Assembly Banks Chairs
IBANYS met this week with the two new chairs of the legislative Banks Committees, Senator Jesse Hamilton (IDC-Brooklyn) and Assemblyman Ken Zebrowski (D-Rockland County). They face a number of key issues, including the Governor's proposed budget, enhancing the state's banking and small business and regulatory environment, and defending against attempts to unfairly expand credit union powers and authorities. We wanted to fully inform the two new chairmen about the important and vital role New York community banks play: in strengthening the local and state economies, and providing essential consumer and small business loans throughout New York. The meetings were productive and the dialogue will continue throughout the legislative session.

Update On DFS "Zombie" Property 
Exemption Form
The New York State Department of Financial Services has corrected two errors on its form that community banks must submit to seek an exemption from the new DFS Abandoned and Vacant ("Zombie") Properties Regulation.   
The updated form may be accessed at:
IBANYS' Government Relations Committee continued to review and discuss the fact that the final regulation's criteria to determine community banks' eligibility for an exemption appears to be different from the original legislative intent negotiated last session. It is possible that seeking a legislative remedy could be necessary.

The email address to submit your exemptuion forms is: 
vacantproperty@dfs.ny.gov
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These Budget Provisions Could Most 
Impact 
Community Banks 
IBANYS Government Relations Committee this week reviewed the Governor's 2017-18 State Budget legislation, and focused on a few items that appear to pose the biggest impact on community banks. These include  the so-called "most bad actor" provision (Part BB): Its language is very broad, and there is a possibility that could lead a number of segments of the financial services industry to oppose. Also, the provision (Part GG) could result in higher assessments charged to examined institutions by DFS, which theoretically could impact current state-chartered institutions deciding whether to switch to a federal charter. The other areas of heightened interest involve a section on data match (Part U), and the provision (Part Y) that empowers the DFS Superintendent in legal actions vis-a-vis the State Attorney general. 

TED Article VII
Part Y
The DFS Superintendent is empowered to:
a)  Bring an action against an unlicensed entity or individual as if the entity or individual were licensed and as such subject to the same penalties; and  b)   Retain control over initiation and prosecution of civil actions against a regulated entity rather than the Attorney General.

Part BB
The Superintendent of DFS based on a disqualifying event may serve charges against a person operating under a DFS license or serving as an employee, owner, director, trustee, officer, member or partner of a DFS licensee based upon a disqualifying event.  A disqualifying event is defined and includes certain criminal acts, engaging in any unsafe or unsound practice and other such acts are delineated.  The disqualification may be for a lifetime or a shorter period as determined by the Superintendent.

Part GG
This bill would allow the expenses of every examination of the affairs of a regulated entity by DFS to be paid for by such entity so examined.  It also provides that regulated entities would be assessed for operating expenses solely attributable to the regulated entity in proportions determined by the Superintendent to be just and reasonable.

Revenue Article VII
Part U
This bill provides that the financial institution data match system would be available when past due for liabilities become fixed and final.  It currently requires a docketed judgment with a tax warrant filed with the county clerk.  It also permits the disclosure of debt and debtor information to the financial institutions and the third party operator of the data match system.

To read the entire 2017-18 proposed budget legislation , visit budget.ny.gov . Click on Publications/Archive , then on FY 2018 Executive Budget,  then on FY 2018 Executive Budget Legislation.

WASHINGTON, D.C.

Urge Your Member Of Congress:
Repeal Durbin Amendment!
ICBA is urging community bankers to contact their Members of Congress and urge them to support a repeal of Durbin amendment price alert controls on debit interchange. Visit icba.org, click on advocacy then on "Grassroots: Be Heard" tabs  to advocate support for a repeal. ICBA President & CEO Cam Fine noted that "price controls have eroded community bank interchange revenues while retailers have pocketed profits promised to consumers. Congress has an opportunity to correct this bad public policy, so we need to do everything in our power to make our voice heard on Capitol Hill." 
 
Other Federal Updates
  • Senate Finance Committee Republicans today suspended the rule requiring at least one Democrat be present for the vote and unilaterally reported President Trump's nominations for Treasury and HHS Secretaries to the full Senate for a vote. The committee vote had been twice delayed this week as Democrats refused to participate until they receive more information about Treasury nominee Steven Mnuchin and HHS nominee, Rep. Tom Price (R-Ga.). Democrats wanted more answers from Mnuchin about 1) whether he "misled" the Committee about the extent of foreign investment in a series of finance entities he helped manage, and 2) about "robo-signing" at OneWest Bank when he  was CEO. Mnuchin's spokesperson said the nominee "repeatedly and comprehensively responded to all requests by the committee."
  • The  Federal Reserve's changes to its stress tests will exempt 20 banks with assets totaling less than $250 billion each from the "qualitative" part of the evaluation.  
  • President Trump's new executive order requiring executive agencies to rescind at least two existing regulations for every new rule promulgated reportedly does not extend to independent agencies. There has been confusion over whether they apply to the Consumer Financial Protection Bureau, whose status as an independent agency is under attack by Republicans. The White House has instructed "executive departments and agencies" to temporarily suspend filing new regulations and delay the implementation of pending rules to give President Donald Trump's appointees the chance to study them.
  • President Trump reiterated his intention to roll back Dodd Frank financial regulations, which he called "a disaster," and vowed to do "a big number" on the 2010 law. He has previously pledged to "dismantle" the Act. 
  • President Trump postponed an executive order Tuesday on cybersecurity. Data security experts have concerns over a provision that would centralize the executive branch's cybersecurity management under the Office of Management and Budget. 
  • IBANYS supports ICBA's 2017 "Plan for Prosperity" (PFP) community bank regulatory relief agenda, and  will be in Washington, D.C. April 30-May 3 to participate in ICBA's "Capital Summit" and  to meet with members of the New York Congressional Delegation to advocate for the PFP agenda. With six New Yorkers on the House Financial Services Committee, and Senator Schumer the Democratic Leader in the Senate,  we need to bring a significant delegation of New York community bankers with us to make our case. Please mark your calendars, plan to join us and watch for further details!  Click here to read the 2017 "Plan for Prosperity"

ICBA Securities Investment School's 
Balance Sheet Academy
ICBA Securities will hold its investment school, the Balance Sheet Academy, April 24-25, 2017 in Memphis, Tennessee. It complements the Bond Academy held last October, and is for more experience financial managers.  The Academy has a capacity of 75 bankers.  Bank personnel with an intermediate level of understanding of investments who are integral to the investment process will benefit the most from this advanced course. New directors serving on the investment or asset-liability committee will also find this course beneficial.  Balance Sheet Academy provides both discussion and practical classroom exercises.  Attendees will learn how the changing economic data impacts the bond market, and hear testimony from an experienced community banker on successful balance sheet management.
There is potential for up to 12 hours CPE credit.
Curriculum includes the following topics:  
  • Bond Markets and Investment Product Review
  • Asset / Liability Management and Impacts to Portfolio Management
  • Using Interest Rate Products to Manage Balance Sheet Exposure
  • Active Loan Portfolio Management
  • Mortgage Investing: CMO's in Detail
  • Navigating the Municipal Market
  • Understanding Municipal Credit
  • Day-To-Day Portfolio Management
  • Economic and Interest Rate Environment
  • Building and Executing Investment Portfolio Strategies
  • Formulating Balance Sheet Strategies 
For details (or to register) click on the link below, or contact ICBA Securities' Jim Reber at (800) 422-6442, jreber@icbasecurities.com.

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IBANYS UPCOMING MEETINGS



March 22, 2017 - Compliance Conference - Rochester

March 23, 2017 - Compliance Conference - Albany

April 11, 2017 - Directors Conference - Rochester

April 12 2017 - Directors Conference  - Albany 

April 30-May 3, 2017 - ICBA Capital Summit, Washington D.C. ( meetings "on hill" with New York Congressional Delegation)

May 9-10, 2017 - Lending Conference - Syracuse (tentative)

June 7-9, 2017 - CFO/Sr. Managment Conference - West Point, NY

September 25-27, 2017 - 43nd Annual Convention - Niagara Falls, NY  

October 24, 2017 - Security Conference - Rochester, 

October 25, 2017 - Security Conference - Albany

IBANYS Board of Directors Meetings:
  • March 2, 2017 
  • June 9, 2017
  • July 20, 2017 (conference call meeting)
  • October 19, 2017
To view details on our 2017 education calendar, visit  www.ibanys.net, click on education tab, then on upcoming meetings for full details.
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ASSOCIATION & INDUSTRY INSIGHTS

"Economic Revival Begins With 
Community Banks"
In a January 30 op-ed in the American Banker, ICBA President & CEO Cam Fine discussed the importance of regulatory relief for community banks as a way to drive the economy. He concluded: "The new Congress and Trump administration are taking on a variety of complex policy areas to speed up growth, from reforming the tax code to revitalizing the manufacturing sector. Releasing the economic power of community banks would produce an immediate and practical benefit for our economy and help include more Americans left behind by our nation's spotty recovery. By acting quickly on the community bank Plan for Prosperity, Washington can support a targeted regulatory system that will help local institutions dedicate more of their resources to helping local economies grow."
Click here for full text of op-ed.

Pending Home Sales Up
A monthly survey of signed contracts (so-called "pending" home sales) rose 1.6% compared to November, and realized a slight 0.3% gain compared to December of 2015, according to the National Association of Realtors.  Activity was strongest in the South and West, and weaker elsewhere. Pending home sales in the Northeast declined 1.6%  percent in December monthly and were 1.2% below a year ago. Supply played an important role nationally. Sales were strongest on the higher end of the market, where listings are more abundant. Sales were up about 10&  year-over-year in December for homes sold at or above $250,000; homes sold between $100,000 and $250,000 only increased 2.3%, and sales of homes under $100,000 were down 11.6% percent compared to a year ago. 

. . .Consumer Spending Also Up 
The U.S. Commerce Department reported that consumer spending (which accounts for more than two-thirds of U.S. economic activity) increased 0.5% in December, after an unrevised 0.2% gain in November.  Consumer spending increased 3.8% in 2016 after rising 3.5% in 2015.  When adjusted for inflation, consumer spending increased 0.3% in December, after rising 0.2% in November.  The data was included in the fourth-quarter GDP report. The economy grew at a 1.9% annual rate in the fourth quarter. 

. . .While Personal Income Up, Savings Down
Personal income advanced 0.3% in December, after increasing 0.1 % in November. Wages and salaries rebounded 0.4% after slipping 0.1% in November. Income increased 3.5% in 2016 after rising 4.4% in 2015.  Savings fell in December, to $768.4 billion, the lowest level since May 2015, from $791.2 billion in November. 

Please Support NYSIBPAC. . .
Watch your inboxes for our 2017 NYSIBPAC solicitation request. This year brings a challenging legislative session that will feature new chairmen of both the State Senate and State Assembly Banks Committees. With many of our competitors within the financial services industry operating very well-funded political action committees, 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?

. . .And Also, The ICBPAC 
Silent Auction
Bob Fisher, President & CEO of Tioga State Bank, is Co-Chair of the 28th Annual ICBPAC Silent Auction to be held Tuesday, March 17, 2017 during ICBA's Community Banking LIVEā„¢ in San Antonio, Texas. BobFisher It is a vital part of the ICBA PAC program. Bob is asking his fellow new York community bankers to help to make this year's event the biggest yet.
Please consider supporting it through sponsorship or a gift donation. Your bank may use corporate funds to help make the Auction a success.  Even if you don't attend, a sponsorship or donation would be appreciated. V isit  www.icba.org/auction  for details. P lease note the deadline to be recognized as a sponsor or gift donor in the Auction Program is  Friday, February 3 . If you have any questions regarding the event or ICBPAC, contact Courtney Schoenborn or Martina Egerer at  (800) 422-8439  or email  auction@icba.org
 
 

ICBA's Annual national convention "Community Banking LIVE" in San Antonio, Texas March 15-19  is the largest community banking convention in the country. Devoted solely to the needs of America's independent community banks, it provides community bank decision-makers nationwide the opportunity to network and gain valuable insight into their business, competition in the marketplace and the special financial challenges we are facing today. Visit www.icba.org for details.


In Other Industry News Of interest:


 
IBANYS 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.

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 

Battling 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 2017 Webinars Designed 
For  New York Community Banks 
In 2017, New York's community banks will face an array of challenges -- and, opportunities! Bank officers, board members and employees must be sure they are fully informed and up-to-date on their responsibilities -- and, about their potential liabilities. Community bankers require the proper information and tools to effectively meet their responsibilities, execute their business and strategic plan, and prepare the bank for the future.  One important -- and convenient --way to do so is by regularly participating in  IBANYS' 2017 webinars. These presentations are specifically tailored to the needs of New York community banks. The programs are effective and cost-effective, and to participate couldn't be easier! Community bankers can do so directly from their own offices. Over the past few years, the number of New York community bankers participating in IBANYS' webinars has dramatically increased.  Is your bank among those who have benefited? If not, why not find out why so many of  your industry and association peers are taking advantage of these timely webinars? Take a moment to r eview our upcoming programs by clicking the link below:
https://financialedinc.com/a/ibanys/category/live

. . .
UHY Advisors 
In today's rapidly changing economic environment banks and other financial institutions are facing a myriad of challenges. With continually changing compliance requirements and imposing new wrinkles to the financial reporting process - the regulators, the FASB and the IRS are making it increasingly hard for banks and other financial institutions to navigate these modifications.  In order to mitigate the impact of these changes on your daily business, to say nothing of managing the additional risk that your institution faces, UHY recognizes that you require the help of trusted advisors that understand the industry while providing personal, partner-level service to help overcome these challenges. 

With offices in Albany, New York City and Westchester County, and an in-depth knowledge of the industry and its products and operating methods, their professionals are uniquely qualified to advise clients on the latest regulatory changes and the rules that affect them. Their team of professionals dedicated to serving banks and other financial institutions includes CPAs, as well as information technology, valuation, risk management, regulatory compliance, and management consultants. They take a proactive approach to addressing concerns before they become major issues, and provide tailored services that best fit your needs. 
For details, visit www.uhy-us.com, call 
Howard Foote (518) 449-3171, 


 
. . .That a s of the most recent tracking report (July 2016) on Dodd Frank by Davis Polk, 271 rulemaking deadlines had passed. Of the 271 rulemaking requirements with deadlines that had passed, 210 (77.5%) have been met with finalized rules, and rules have been proposed that would meet 29 (10.7%) more. Rules have not yet been proposed to meet 32 (11.8%) passed rulemaking requirements.  Of the 390 total rulemaking requirements, 274 (70.3%) have been met with finalized rules and rules have been proposed that would meet 36 (9.2%) more. Rules have not yet been proposed to meet 80 (20.5%) rulemaking requirements.





 


 
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