. . . IN THIS WEEK'S ISSUE:
  • Just Over Two Months Until IBANYS' Annual Convention: The Power Of Community Banking  September 25 - 27 In Niagara Falls -- New Concepts Outlined 
  • Tioga State's Bob Fisher To Testify Before Congress On Community Bank Regulatory Relief
  • ACTION ALERT: Contact Your Representatives--Support the CLEAR Relief Act
  • Invite Your Local Representatives To Your Bank This August
  • New Initiatives In Albany, Washington To Expand Credit Union Membership, Ease Regulation 
  • And 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

July 12, 2017


IBANYS is pleased to announce that the following associate members have renewed for the next year:
  • Atlantic Community Bankers Bank
  • The Bonadio Group
  • Harland Clarke
  • KPMG
  • M&T
  • SRM (Strategic Resource Management)
We look forward to working together, and we appreciate their support and the valuable products and services they provide to New York community banks throughout the year!
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Only 11 Weeks Until. . .
IBANYS' 2017 ANNUAL CONVENTION!
   
SEPTEMBER 25-27 IN NIAGARA FALLS 
Two New Concepts Will Be Introduced. . .
Join leaders of New York's community banking industry, IBANYS preferred providers, associate members and an outstanding array of speakers.
Also, at this years convention, we are introducing two new concepts that we will test with our attendees. 
  • The first is our Innovation Showcase scheduled for Monday afternoon prior to the opening reception.  This showcase is intended to have companies bring in new ideas from FinTech companies that are focused on working with community banks. We will have 3 or 4 companies in speaking on Payments/Mobile Wallets, Artificial Intelligence, Data Aggregation, etc. 
  • The second idea is to have your bank's emerging leaders attend the Annual Convention at a reduce rate.  IBANYS would like to have those leaders who are not in the C-level Suite of Executives attend the conference and begin to network with other bank executives, and among the new Emerging Leader group.
Niagara Falls provides a truly spectacular venue for our conference.  Click here to learn more about the many activities available!

Answer To Last Week's Convention Trivia: 
What do financial journalist Jane Bryant Quinn, former Yankees,  Giants and Dodgers major league pitcher Sal "The Barber" Maglie and former NYS Senate Majority Leader Earl Brydges have in common? All are natives of Niagara Falls!
 
   
ALBANY UPDATE

DFS Guidance Allows Credit Unions New Flexibility To Sign Up New Members
New York State Department of Financial Services Superintendent Maria Vullo announced that DFS has issued  guidance  declaring New York State-chartered credit unions seeking to establish temporary facilities in New York to provide limited services that do not include certain monetary transactions, such as signing up new members, may provide such services on notice to DFS without requiring a prior application with DFS These facilities can include mobile service units, tents, booths, tables, or similar stations. This new guidance was developed after DFS learned that there may be a question as to whether state-chartered credit unions are required to seek the Department's approval if they use temporary mobile service units, tents, booths, tables or similar temporary facilities located in New York to sign up new members; receive loan and credit card applications; and/or advise members and potential members about the products and services offered by the credit union, provided they do not include or involve any wire transfer transactions, accepting or contracting for deposit type liabilities, withdrawals, dispersing, remitting or transmitting funds, issuing ATM, debit or credit cards, processing or executing any form of loan or financing, or accepting any payments. credit unions must provide the Department a schedule listing upcoming times and locations of the temporary facilities, as well as the number and title of qualified individuals offering the services at any temporary facility located in New York, and any further information as DFS may require.


WASHINGTON UPDATE

New York's Bob Fisher To Testify On 
Community Bank Regulatory Relief 
Bob Fisher (President & CEO, Tioga State Bank and former Chairman of IBANYS) will will testify this afternoon before the House Financial Services BobFisher Committee's Subcommittee on Financial Institutions and Consumer Credit hearing on Targeted Regulatory Relief for Community Financial Institutions. He will present key provisions of ICBA's "Plan for Prosperity" (which IBANYS has endorsed), and encourage the Committee to take up and advance the CLEAR Relief Act (H.R. 2133), the Financial Institutions Due Process Act (H.R. 924), the Clarifying Commercial Real Estate Loans Act (H.R. 2148) and the Access to Affordable Mortgages Act.

New York Community Bankers:
Contact Your Representatives On CLEAR ACT
IBANYS and the Independent Community Bankers of America (ICBA) are working to advance the CLEAR Relief Act , which would provide community banks in our state meaningful regulatory relief. H.R. 2133 (Luetkemeyer) and S. 1002 (Moran, Tester) include many provisions from ICBA's "Plan for Prosperity" regulatory relief program that IBANYS has strongly endorsed. If enacted, the CLEAR Act will allow community banks to better promote and support entrepreneurship, job creation, homeownership and economic growth in New York's local communities. To support this effort, we need you to send a letter to members of Congress 1) thanking sponsors of this legislation, and 2) encouraging non-co-sponsors to sponsor and support this legislation.  ICBA has set up a pre-written action alert (see below) that you can use to send your messages . IBANYS encourages New York community banks to customize the letter, and talk specifically about your bank and community. You can reference specific statistics on community banks by state and congressional district through the ICBA's Community Bank Footprint page:  https://www.icba.org/advocacy/ grassroots-be-heard!/advocacy-toolbox/state-and-congressional-district-community-bank-footprint Thank you for doing your part to help advance regulatory relief and support the passage of the CLEAR Relief Act!


Invite Your Congressional Representatives 
To Visit Your Bank During August
There are just three more weeks until the August Congressional recess. Members of Congress will return to their districts to meet with constituents. IBANYS joins ICBA in urging New York community bankers to invite your local Representatives (and their staff) to visit your banks during August to witness first hand  the challenges community banks face in today's regulatory environment. Help them to understand the very real need to find solutions to regulatory overreach, which limits your ability to serve your local customers and communities. Remind them of the impact and importance of community banking in their districts.  ICBA has developed a "Meeting on Main Street" guide to  help with planning and logistics for bank visits/in-district meetings.  T ake another step toward meaningful community bank regulatory relief. Questions? ICBA's Joshua Habursky can help. Joshua.habursky@icba.org, (202)821-4355

In other updates from Washington:
  • Federal Reserve Chair Yellen will deliver her semi-annual testimony on monetary policy in testimony before the House Financial Services Committee Wednesday and the Senate Banking Committee Thursday.
  • According to Treasury Secretary Mnuchin, a "full-blown release" of a tax overhaul is planned for the beginning of September, with the aim of a final vote before the end of the year. Republicans hoping to advance tax reform legislation face an uphill battle, as complications reportedly include divisions within the GOP about key parameters of their plan, continued tension surrounding efforts to pass a health care bill and impending fiscal deadlines to pass government spending bills and to raise the debt ceiling. Mnuchin also dismissed talk that a tax plan would include tax cuts for the wealthiest Americans. The House Ways and Means Committee this week will hold the first of two July tax-reform hearings. scheduled for July. This week's will focus on small businesses.
  • Despite significant reforms over the last decade, Federal Reserve Gov. Jerome Powell said the current U.S. housing finance system is risky for taxpayers, given the concentration of mortgages in government-backed agencies Fannie Mae and Freddie Mac. Gov. Powell called the current setup "unsustainable," and urged changes that would promote greater competition in the market and limit the possibility of taxpayer-funded bailouts.
  • National Credit Union Administration Chair Mark McWatters' letter to CFPB Director Cordray stated: "I am writing today to thank you for your past willingness to listen to reasonable requests for adjustments to [CFPB] regulations ..." Then, he asked Cordray to stop examining credit unions and not to take enforcement actions against them.  McWatters noted "aggressive punitive fines" were the "primary method of enforcement available" to the CFPB, and that fines levied on credit unions have a more direct effect on consumers than fines imposed on for-profit financial institutions. Therefore, he said, fining credit unions is "tantamount to imposing a 'the beatings will continue until morale improves' approach to consumer protection enforcement."


New York State Ranked 38th Out Of 50 
By CNBC's List Of Top States For Business
CNBC's annual ranking scored all 50 states using 66 metrics across 10 categories, and assigned a weight to each category based on how frequently the states use them as selling points in their economic development marketing pitches.This year's categories and point totals are:
  • Workforce: 425 points
  • Infrastructure: 400 points
  • Cost of Doing Business: 350 points
  • Economy: 300 points
  • Quality of Life: 300 points
  • Technology & Innovation: 225 points
  • Education: 200
  • Business Friendliness: 150 points
  • Access to Capital: 100 points
  • Cost of Living: 50 points
New York State ranked 38th out of the 50 states. CLICK HERE to read the profile and ranking for New York in each category. Washington State was ranked first, while West Virginia ranked last.

OCC: Many Risks Are Beyond Banks' Control
An OCC report stated that many major risks facing U.S. banks are beyond their control. The sector's financial performance remains strong. The report found  risks to banks lurk in competition from nonfinancial lenders, and in the rapid evolution of money laundering and terrorism financing methods.  The OCC cited heavy reliance on third-party servicers and vendors as a potential vulnerability to a variety of threats, as they rely on outside firms to carry out critical activities or provide cyber security.  "Many banks have increasingly leveraged and become dependent on third-party service providers to support key operations within their banks. Over time, consolidation among service providers has resulted in large numbers of banks (becoming) reliant on a small number of service providers.
"Banks also could run the risk of falling afoul of multiple new or amended regulations in lending and real estate, because their vendors are not aware of regulatory changes, the OCC said. Banks may rely on outside firms or software to process loan applications, underwrite or close loans, which could open them to challenges in complying with the new regulations. The OCC said loan growth in commercial real estate and looser underwriting standards are also top areas of risk.

News From The CFPB
ICBA reports that the CFPB finalized its updates to TILA-RESPA Integrated Disclosure rule that are meant to offer additional guidance and clarity. They amend tolerances for the total of payments, clarify fees and transfer taxes that may be charged related to housing assistance lending transactions. They also extend the rule to cooperative units, and may outline how creditors may provide separate disclosure forms to consumers and sellers. Meanwhile, the CFPB also issued a proposal focused on when creditors may use a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance. Comments are due in 60 days.

Faces & Places
  • President Trump will nominate Randal Quarles as the Federal Reserve's vice chairman of supervision, the top bank regulatory post at the central bank, according to an announcement by the White House. If confirmed by the U.S. Senate, Quarles would fill one of three vacant seats on the Fed's board. 
  • The Senate voted 54-41, mostly along party lines, to confirm Neomi Rao as the new administrator of the White House Office of Information and Regulatory Affairs, the administration's "regulatory czar".
  • Published reports say President  Trump is "increasingly unlikely" to nominate Federal Reserve Chair  Janet Yellen next year for a second term, and that National Economic Council Director  Gary Cohn is the leading candidate to succeed her, Politico reported that  sources in the administration and on capital hill believe that if Cohn wants the job, he is likely to get it.
Vining Sparks WEBINAR:
2017 Quarterly Economic Outlook:
"From Great Expectations 
To Good Expectations"
Thursday, July 13
Coming into the year, the markets were highly optimistic regarding the prospects of fiscal and tax policy changes.  However, some of that optimism has faded as the year has progressed.  Additionally, the Fed has proven to be a bit more hawkish than expected.  Despite this, the markets continue to discount the likelihood of the FOMC's projected rate path.  In our 3rd Quarter Economic Outlook Webinar, we will discuss the developments thus far and expectations for these policies going forward.

The free-of-charge webinar is designed for portfolio managers, CEOs/Presidents & CFOs. Craig Dismuke, EVP & Chief Economist with Vining Sparks, will be the speaker.
CLICK HERE to register.


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?

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, easily-identifiable internet locations for financial companies and their customers. V isit  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




. . .Luse, Gorman P.C.
Luse Gorman is a Washington, D.C. based law firm that specializes in representing community banks with respect to corporate, regulatory, securities and employee benefits/executive compensation matters. The firm's  bank regulatory, compliance and enforcement practice is an integral part of the corporate and transactional services that they offer financial institutions clients. 

For details contact Jeff Cardon, Partner, at  (202) 274 2033, jcardone@luselaw.com. Or, visit the website at  www.luselaw.com.

 
. . .That in just the last four years, the total assets of federally insured credit unions have grown by nearly $70 billion, and membership has grown by more than 10 million, while the total number of credit unions has declined by over 1,000? Credit unions are aggressively expanding into business lending. According to the National Credit Union Administration, total business lending by credit unions ballooned from $13.4 billion in 2004 to $56 billion in September 2015, an annualized growth rate of 14%. Credit unions were originally chartered by Congress to enable people of small means with a "common bond" to pool their resources to meet their basic deposit, savings and borrowing needs! 

 

 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