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 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?
for our 2017 PAC contribution form. Help support IBANYS' political action efforts in New York State.


February 22, 2017

IBANYS is pleased to welcome our newest associate member firm: A nold & Porter Kaye Scholer is a 1,000+ lawyer firm with sophisticated litigation and transactional capabilities, renowned regulatory experience and market-leading multidisciplinary practices in the life sciences and financial services industries. Client-driven and industry focused, our lawyers practice across more than 30 practice areas, including bankruptcy, corporate finance, intellectual property, litigation, real estate and tax, to help clients with complex needs stay ahead of  the global market, anticipate opportunities and address issues that impact the very value of their businesses. Our global reach, experience and deep knowledge allow us to work across geographic, cultural, technological and ideological borders, to offer clients forward-looking, results-orients solutions that resolve their US, international and cross-border legal needs.

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ICBA Capital Summit April 29-May 3:
Join Us For Key N.Y. Congressional Meetings 
Join IBANYS at the  ICBA   2017 Capital Summit (April 29-May 3) in Washington, D.C. 
It will include appearances by  top policymakers, and the new "Future of Banking" Symposium. IBANYS will bring a contingent of community bankers to join us 
"on the hill" for meetings with members of the New York Congressional Delegation.
With six New Yorkers on the House Financial Services Committee, and Senator Schumer now the Democratic Leader in the Senate, we need to bring with us a significant delegation of New Yorkers to help make "the community bank case" in terms of our issues and priorities. House Financial Services Chairman Jeb Hensarling (R-TX) will address the Summit, and a number of other top policy makers -- including Vice President Pence -- have been also invited to speakICBA is working with Chairman Hensarling to advance his "Financial CHOICE Act" regulatory relief bill, which is expected to be released as soon as next week. The legislation is expected to be a chief vehicle for passing many provisions of ICBA's "Plan for Prosperity" community bank regulatory relief agenda. The bill will essentially rewrite much of Dodd-Frank, and provide a roadmap for the financial services industry's future. Hearings and committee markup may be completed by late March or April, with a House floor vote possible by late April or early May. Can we count on you to join us? Register below. Contact IBANYS' Steve Rice ( to sign up for a congressional visit.  


IBANYS Compliance Conferences 
Exam Key Regulatory Concerns
Community bank compliance officers face a growing number of challenges in 2017 and beyond. Federal and state regulatory burden, "hot button" examination issues, data security, ERM, risk management, corporate governance, ADA website compliance, incentive compensation, vendor management and much more.  IBANYS' Regional Compliance Seminars March 22 in Rochester and March 23 in the Capital District offer one-day programs with senior regulators and outside consultants to address these top regulatory compliance concerns as identified by IBANYS' Compliance Peer Group. Speakers will include: 
  • FDIC New York Regional Director & Deputy Director John Vogel and Scott Strockoz; 
  • OCC National Bank Examiner Ron Castrichini; 
  • NYS DFS Deputy Superintendents Ruth Adams and Yolanda Ford & Consumer Compliance Director Mitchell Kent;
  • Steve King & Peter Rossi (Wolf & Company);
  • Charlie Graham (Volum8), and 
  • Jeffrey Cardone & Ben Azoff (Luse Gorman).
In stand alone presentations, Q&A sessions and a concluding panel discussion, these conferences are an important opportunity to hear regulatory perspective, engage in dialogue and prepare for the chalenges ahead.
Click here to see full program and register

IBANYS Directors Conferences To 
Examine Timely Challenges
Community banks are coping with evolving customer demands, while contending with shrinking margins, reduced fee income and increased regulatory costs. Bank directors are being required to do more than ever before to help banks navigate this new and difficult landscape. IBANYS' Regional Bank Directors Conferences on Tuesday, April 11 (Rochester) and Wednesday, April 12 (Capital District) will focus on a number of timely issues, and the latest Enterprise Risk management (ERM) developments to help directors identify what they must know concerning regulation, oversight and strategic planning to enhance their banks' growth and profitability. The conferences are designed for bank directors, CEOs, CFOs and other senior bank officers. Note: Attendees can earn up to 7.5 CPE credits. Program segments include updates on: 
  • Mergers & Acquisitions & How Capital Markets Drive the Process  
  • Cybersecurity: A Directors Guide To Cyber Threats & Security  
  • Enterprise Risk Management & The Role Of The Board  
  • How To Prepare For The Next Exam
  • Attracting & Retaining Millennials As Bank Customers & Employees
  • Shareholder Succession: Capital Needs & Shareholder Liquidity 
Click here   to see full program and to register. Additional speakers to be announced.

. . .And, These Important Seminars. . .  

American Banker 
Web Seminar March 16: 
NYS DFS Revised Cybersecurity Regulation 
On December 28, 2016 the State Department of Financial Services (DFS) issued a revised regulation on its Cybersecuroty Requirements for Financial Services Companies ( 23 NYCRR 500 ). The reg was revised and republished by DFS after receiving significant comments from the financial services industry (including from IBANYS). The reg places significant additional requirements in the areas of access controls, asset management, data governance, software development practices, third party risk assessment and other proscribed areas. It also requires covered entities to provide an annual certification of their compliance with the regulation beginning as early as February 15, 2018 for many of its sections. The American Banker is offering a webinar on March 16, 2017 at 2:00 PM. It will be moderated by Mike Sisk (Contributing Editor, American Banker) and will feature Brad Keller, Senior Director, Third-Party Practice Lead Prevalent). The focus will be on:
  • Who is covered
  • Key areas covered
  • How to approach compliance
  • Overall impact on Cybersecurity and Third Party Risk Assessments
To register:

Arnold & Porter Kaye Scholer Seminar:
"The OCC Fintech Charter --
Opportunity With A Twist"
Thursday, March 16, at Arnold & Porter Kaye Scholer, 250 West 55th Street, New York, N.Y. 10019. (4:30 p.m. Registration; 5:00 p.m. program; 6:30 Reception.) 
The recently proposed OCC expansion of the special purpose national bank charter for Fintech companies creates a very interesting opportunity for single source supervision of companies that provide consumer financial services without offering insured deposits. . . But at what price? 
This two-part seminar will explore the following attributes and issues that are critical to an evaluation of the OCC's proposed innovation:
Part I: Regulatory Perspective
·           Permitted activities
·           Impact of ongoing OCC supervision and enforcement
·           Ongoing compliance expectations
·           The extent of preemption of state laws
·           Corporate governance requirements
Part II: Effect on Transactions
·           Impact on day to day transactions
·           Impact regarding state licensing requirements
·           Effect on usury caps
·           Impact on strategic transactions, including capital raising and M&A

To register or for details, call (212) 836 8000

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,

New England College of Business 2017 
Online Consumer Credit Course:
"Make Better Consumer Lending Decisions"  
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. NECB is offering this special course at a reduced cost to IBANYS member banks.  The course tuition is $800, normally priced at $1,455, this is a one-time opportunity you won't want to miss.  Registration deadline is April 15.  Using the College's award-winning online learning platform, consumer lending basics will be covered, including regulations, credit policy, operations and loan closings/servicing. T he New England College of Business is dedicated solely to educating working professionals in business and finance.  Seats are limited. For details, contact Mike Gunther: (518) 331-9677,

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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, click on education tab, then on upcoming meetings for full details.

new york state capitol

State Budget Update
The NYS Legislature is out on recess until next Tuesday, February 28. By way of an update, the State Division of Budget (DOB) released its 30-day amendments to the Governor's proposed executive budget for FY 2017-18, and they included mostly techniclal amendments and adjustments. On February 28, the State Senate and Assembly will issue their Revenue Forecasts and Economic Reports, and will issue a consensus report on March 1. Both chambers will release their respective one-house budgets on March 13, and the final budget, following extensive negotriations between the Governor and legislative leaders, is due to be enacted by April 1.
IBANYS continues to review and seek banker input on the specific proposals in the Governor's budget that could most impact community banks, including a provision that could result in higher assessments charged to DFS examined institutions. IBANYS issued a summary of our Government Relations meeting on the budget proposals on January 30, and it is available on our website ( 

Taxes Back In The News
  However, the issue of taxes on the wealthy or high-income earners is back in the news. Senate Independent Democratic Conference Leader Jeff Klein (IDC-Bronx) called for closing the "carried interest loophole" that benefits wealthy hedge funds. Meanwhile, Gov. Cuomo is on record as wanting to keep the higher tax rates on millionaires in place. They are scheduled to expire at yearend. Assembly Democrats also want to increase taxes on those earning more than $5 million annually. Business interests and Senate Republicans argue the state doesn't need the money that would come from higher taxes on the wealthy, noting the Governor's own fiscal plan and 2% spending cap preclude needing the extra revenue  from extending what was supposed to be a temporary millionaires tax.


Congress Is Also Out Until Next Week, But T here Was Federal Activity
  • Legislation to promote tiered banking regulations has been re-introduced by Senators Rounds (R-S.D.) and Rep. Tipton (R-Col.). The TAILOR Act of 2017 (S. 366 and H.R. 1116) would require financial services agencies to tailor regulatory actions based on the business model and risk profile of regulated institutions. It would be retroactive to 2010, and would require regulators to provide an annual report to Congress outlining the steps they have taken to tailor their regulations. The 2016 version of the bill passed the House Financial Services Committee last year.
  • ICBA and more than 500 other agricultural and business groups have asked Congress not to make further cuts to the farm bill in 2018 following the substantial deficit reduction in the bill passed in 2014. That last farm bill was projected to contribute $23 billion to deficit reduction over ten years, but has now been scored as saving nearly $100 billion more than initially projected. Rep. John Faso (R-Hudson Valley) and Sean Patrick Maloney (D-Hudson Valley) are on the House Agricultural Committee, and Senator Kirstin Gillibrans sits on the Senate Agriculture Committee.
Other Updates From Washington:
  • Rep. Mick Mulvaney (R-S.C.) has been confirmed by the Senate as President Trump's Director of the Office of Management and Budget.
  • Wall Street lawyer Jay Clayton, President Trump's pick for SEC Chairman, is still awaiting a confirmation hearing in the Senate, ans so is the nominee for U.S. trade representative, Robert Lighthizer.  
  • Speculation is focusing on who may be added to Treasury Secretary Mnuchin's team. They include: Jim Donovan (Goldman Sachs) as Deputy Secretary; Muzinich official (and former Morgan Stanley official) Justin Muzinich as Undersecretary for Domestic Finance or Counselor, and former Bear Sterns economist and ex-Reagan and G.H.W. Bush official David Malpass as Undersecretary for International Affairs.
  • Andrew Olmem, an attorney and former Republican congressional aide, was reportedly named a deputy to Director Gary Cohn at the White House National Economic Council. He was with the Senate Banking Committee during the financial crisis.
IBANYS, NYBA Members Meet With Rep. Tenney's Banking Staff In District
IBANYS and NYBA coordinated a productive meeting this morning for local bankers in the 22nd Congressional  District (Central New York) with U.S. Rep. Claudia Tenney's banking legislation assistant, Ryan Rusbuldt. Rep. Tenney serves on the House Financial Services Committee, and Mr. Rusbuldt  previously worked with the Committee's staff for Chairman Hensarling.  The meeting was requested to provide bankers an update, and seek input on the regulatory burden Dodd-Frank has caused.  Bankers are encouraged to follow-up by sending an emailed note to: 


Existing Home Sales Up
The National Association of Realtors this morning reported that existing home sales jumped 3.3% to a seasonally adjusted annual rate of 5.69 million units last month, the highest level since February 2007. Sales were up 3.8% from January 2016. The increases came despite higher prices and mortgage rates, and could be a sign of growing confidence in the economy.

New York Fed: Household Debt Up, But Bankruptcies & Foreclosures Down
According to the New York Federal Reserve's latest quarterly report, household debt in the U.S. totals $12.58 trillion, a level not seen since 2008.  That's a $226 billion increase in household debt for the fourth quarter of 2016, the largest quarterly increase since 2013. It is  attributed mostly to rising reliance on home and auto loans, while credit card debt and student loans also played a part. Still, t here's no evidence people can't handle the debt they're taking on: bankruptcies and foreclosures hit an 18-year low in the last quarter of 2016.

Chairman Hensarling and President Trum at signing of executive order to review financial rules.
Hensarling Eyes Dodd-Frank, CFPB
House Financial Services Chair Hensarling called the Consumer Financial Protection Bureau (CFPB) "the single-most unaccountable and powerful agency in the history of our republic, running afoul of every tenet of separation of powers and checks and balances."  He  wants to dramatically scale back its functions, and narrowing its focus to a "civil enforcement agency that enforces the 18 major consumer protection laws that we have on the books." The President has signed an executive order mandating a review of federal financial rules, and believes the structure of the CFPB makes the agency "unaccountable" to the American people. Meanwhile, on May 24 the full U.S. Court of Appeals for the District of Columbia Circuit will rehear a case calling into question the constitutionality of the Consumer Financial Protection Bureau's structure. Republicans and banking industry leaders had pointed to the court's October ruling against the CFPB to bolster their case for a bipartisan commission.

Who Might President Trump Pick For Fed?
President Trump will be able to recast the Federal Reserve by filling three or more vacancies on its seven-member board of governors after Fed Gov. Daniel Tarullo leaves in early April. Republicans also want him to fill another vacant post for vice chair of supervision. Press reports claim he may be leaning toward candidates with banking and financial world experience, rather than economists or those from academia. As a candidate, Mr. Trump criticized the Fed's low-interest-rate policies, and observers speculate he may seek more "hawkish" candidates who could favor higher borrowing costs. According to press reports, the pool of potential candidates may include General Electric executive David Nason, former BB&T Corp. CEO  John Allison and Rep. French Hill (R-Ark).

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 LIVE™ 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  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

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 for details.


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:

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<
> 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 to get involved!  

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:

. . . Arnold & Porter Kaye Scholer 
Arnold & Porter Kaye Scholer is a 1,000+ lawyer firm with sophisticated litigation and transactional capabilities, renowned regulatory experience and market-leading multidisciplinary practices in the life sciences and financial services industries. Client-driven and industry focused, their lawyers practice across more than 30 practice areas, including bankruptcy, corporate finance, intellectual property, litigation, real estate and tax, to help clients with complex needs stay ahead of  the global market, anticipate opportunities and address issues that impact the very value of their businesses. Their global reach, experience and deep knowledge allow them to work across geographic, cultural, technological and ideological borders, to offer clients forward-looking, results-orients solutions that resolve their US, international and cross-border legal needs.
Their New York office is at 250 West 55th Street
New York, NY 10019-9710P. For information, call (212) 836-8000.

. . .that New York State now has six members on the all-important U.S. House Financial Services Committee? They include Republicans Peter King (R-L.I.), Lee Zeldin (R-L.I.) and Claudia Tenney (R-Central NY), and Democrats Greg Meeks (D-Queens), Nydia Velasquez (D-Brooklyn) and Carolyn Maloney (D-Manhattan). The Committee will be a focal point in the efforts to revamp Dodd-Frank, and approve many of the ICBA's Plan for Prosperity under Chairmn Hensarling's "Financial CHOICE Act".


 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