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.


March 1, 2017

ICBA Capital Summit April 29-May 3:
Includes Key N.Y. Congressional Meetings 
(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.  

. . .Regional Conferences For 
New York Community Banks
Speakers, Panels Provide
Regulatory, Banker & Consultant Perspectives 
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 Regional Conferences Will  
Examine Key Challenges, Solutions  
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.

. . .Plus, Don't Forget: 

For These Upcoming Special Webinars  & Seminars

"American Banker" 
Web Seminar March 16 On
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,

*     *     *     *     *
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

new york state capitol
State Budget Update
This week in Albany, the NYS Legislature returned to session, and the  State Senate and Assembly have released their economic and revenue forecasts for the upcoming fiscal year. Both view the revenue picture as being rosier than the Governor's projections. The Senate, led by Republicans, estimated $354 million in additional revenue beyond Governor Cuomo's 2017-18 budget. Tax revenues for the rest of the current fiscal year, will be $158 million than the initial estimate. The Democratic Assembly plans on having an additional $1 billion more than what the Governor expects, plus an added $355 million more in the current fiscal year. Both chambers will release their respective one-house budgets in two weeks, with deadline for enacting the 2017-18 state buget April 1. Meanwhile, at his first public cabinet meeting in Albany since 2014, Gov. Cuomo reiterated his push for the "seminal" extension of the millionaires tax - underscoring his belief that keeping high rates on the rich is necessary,  noting:  "I don't know how you close the budget without it."

Legislative Update
While the Legislature was our on recess last week, two bills did advance to third reading.  A.372, Richardson (same as S.982, Savino) would amend Section S2 of the State Banking Law (as proposed in S.7183 & A.9746), relating to defining "consummation" of a mortgage loan. Plus, A.1371, Weinstein would amend the Amd Section 1302 of the RPAP Law to make the affirmative allegation provisions for high-cost loans and subprime home loans, applicable to all mortgage foreclosures. (There is no Senate companion bill as yet.) 
Meanwhile, a number of bills were introduced February 15 - 22. To view the report, click here.
Poll Finds Public Supports Gov. Cuomo
&His Budget proposals 
The new Siena College poll out this week found strong public support for Gov. Andrew Cuomo and for his state budget proposals: 77% support extending the so-called millionaires' tax. The Governor's approval ratings are also up.  For the first time since the summer of 2014, more approve of the job the Governor is doing than not, and his  favorable-unfavorable rating is 60%-34% (up from 56%-37% last month). That's his highest favorability rating since January 2015.  Fifty percent of voters would vote to re-elect him if he runs for a third term next year, his highest percentage since last summer.
Only 29% of Republicans would be willing to re-elect. While 47% of upstaters (a plurality) would like to see an unnamed "someone else" elected, t he Governor's favorable-unfavorable rating among upstaters is 54%-42%.  Meanwhile, Gov. Cuomo will call a special election on May 23 to fill the Harlem State Senate seat vacated by former Democratic Sen. Perkins, and the Long Island Assembly seat vacated by former GOP Assemblyman Saladino.

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). The Plan offers policymakers a comprehensive regulatory blueprint to promote localized lending and job growth. IBANYS members: join the alliance of community banks, local communities and the economy -- click on the link and sign the petition!

Legislation Would Make CFPB Accountable
ICBA supports legislation to subject the Consumer Financial Protection Bureau (CFPB) to the congressional appropriations process. Sen. Perdue (R-GA) has introduced S.387 ("The CFPB Accountability Act) would change how the Bureau receives its funding, which currently comes directly from the Fed.  ICBA (and IBANYS) have long advocated that the CFPB should also be governed by a bipartisan commission instead of the current single director.That provision will also be included in House Financial Services Chairman Hensarling's Financial CHOICE Act, to be released in the near future.

House GOP To Fed: Stop Rulemaking Until. . .
House Financial Services Committee Chair Hensarling (R-TX) and 33 other Republicans on the Committee wrote to Federal Reserve Chair Yellen urging the Fed to stop rulemaking until President Trump fills a top regulatory post at the central bank to lead regulation of Wall Street. Should the Fed defy the request, lawmakers may undo  any rules made before that time. Meanwhile, t he Trump administration has broadened its search, and met in recent weeks with at least two individuals about the post of Fed vice chair in charge of bank oversight.

President Orders Red Tape Reduction
President rump signed an executive order requiring every federal agency to establish a Regulatory Reform Task Force to eliminate red tape. Each task force will evaluate existing regulations and identify costly and unnecessary regulations for repeal or modification. The President previously signed executive orders that require agencies to identify two federal regulations for elimination for every new regulation they issue, and direct the Treasury Department to work with federal agencies to review regulations implemented in response to the 2008 financial crisis.

Mnuchin On First Trump Budget
President Trump's first budget proposal won't touch Social Security or Medicare, Treasury Secretary Steven Mnuchin said  Sunday. Mnuchin told Fox News that Trump's first budget proposal, expected to be released on   March 13, won't include changes to entitlement benefits.


FDIC Quarterly Banking Profile:
Community Banks Update
The FDIC's Quarterly Banking Profile found that community banks reported a $508 million (10.5%) increase in net income for the fourth quarter of 2016. The 5,461 institutions identified as community banks experienced a $22.4 billion rise in total loan and lease balances, (up $115.7 billion over the past 12 months). Net operating revenue was up $1.6 billion (7.6%) from the fourth quarter of 2015, to $23 billion. Overall, all FDIC institutions had a 7.7% rise in net income. Meanwhile, the agency's "problem bank" list declined from 132 to 123 during the quarter, the smallest number in more than seven years, and the Deposit Insurance Fund's reserve ratio continued to rise, growing from 1.18% to 1.20%. 

Bankers In Survey View Trump 
Actions Favorably
The American Banker reports that a survey of more than 250 bankers taken in early February found about two-thirds of respondents said his actions to date have been either very or somewhat positive to the industry. Only 14% found those moves to be either somewhat or very negative, while 20% hadn't formed an opinion yet. 28% were "very confident" regulatory relief would be coming under Trump's leadership, while 51% were somewhat confident it was on its way. 81% said reform of the Consumer Financial Protection Bureau would be part of any final effort, and 40% predicted a repeal of the Durbin amendment limiting debit interchange fees. Nearly half predicted a simpler capital regime. The survey findings suggest support for Trump among bankers has increased since the election. An October 2016 SourceMedia poll found 53% of 300 bankers polled believed Trump would be better for their industry, compared with 20% for Democrat Hillary Clinton.

New Home Sales Up
Sales of new single-family homes increased 3.7% in January and were up 5.5% from one year earlier, according to the U.S. Commerce Department . The increase, which followed a steep decline in December 2016, brought the seasonally adjusted annual sales rate to 555,000.

Consumer Sentiment Down
Consumer sentiment dipped in February, but remained up from one year ago. The University of Michigan's Index of Consumer Sentiment declined to 96.3 (from 98.5 in January)--a 2.2% decline.However, it remains up 5% from February 2016.

Changing Landscape Of Mortgage Market
The landscape of the lending market has shifted dramatically over the past few years from domination by big banks to a market where more housing money loans are made by non-banks - financial institutions that only make loans, and don't offer deposit accounts such as a savings account or checking account. In 2011, 50% of all new mortgage money was loaned by the nation's three biggest banks (JPMorgan Chase, Bank of America and Wells Fargo). By last September, their share of loans had dropped to 21%. By then, six of the top 10 largest lenders by volume were non-banks, including Quicken Loans, loanDepot and PHH Mortgage, compared with just two of the top 10 in 2011. The withdrawal of banks from the mortgage business is the result of the fundamental shift in regulations that took place in response to the housing crisis, says Meg Burns, managing director of the Collingwood Group.

FHFA: House Prices Up
The Federal Housing Finance Agency (FHFA) reported that its Price Index showed that U.S. house prices rose 1.5% in the fourth quarter of 2016. Prices were up 6.2% from the same period of the previous year, and up a seasonally adjusted 0.4% in december from the previous month.

Unemployment Update
The U.S. Labor Dept. said the number who filed for  unemployment benefits rose slightly more than expected last week, but th e four-week average of claims fell to its lowest level since 1973.  Initial claims for state unemployment benefits increased 6,000, to a seasonally adjusted 244,000 for the week ended Feb. 18. It marked the 103th straight week claims remained below 300,000, a threshold associated with a healthy labor market -- the longest stretch since 1970 when the labor market was much smaller. (The labor market is at or close to full employment, with the unemployment rate at 4.8%.

In Other News:
Total outstanding U.S. bank loans declined in December and January, marking the first two-month dip in more than five years. The slowdown contrasts with the post-election stock rally and may reflect higher interest rates or increased delinquency.

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  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? R eview our upcoming programs by clicking the link below:

. . .The Bonadio Group
The Bonadio Group, f ounded in 1978, is a nationally ranked, top 40 CPA firm that brings an integrated world of resources to every client, large or small.  It's a new world in banking and finance. Banks are under more scrutiny than ever. The Federal Reserve, the Consumer Financial Protection Bureau and others are determined to improve efficiency, in part by preventing and detecting fraud, waste and abuse.  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 ranging in size from de novo status to $24 billion in total assets.  With offices in New York State and Vermont, they provide a complete range of financial and consulting services - from auditing and tax, to multidimensional accounting, business advisory, and financial services. 

For details, contact Jamie L. Keiser, CPA, Partner at  (315) 422 7109,, or visit the website:

. . .that the home-ownership rate in the United States is the percentage of homes owned by their occupants? T he U.S. Home Ownership Rate during the fourth quarter of 2016 was 63.70%.  When IBANYS was established in 1974, the rate was 64.6%. Since 1960, the high-water mark was 69% in 2004, while the low point was 62.1% in 1960.

Did you also know that according to the U.S. Census Bureau, Millennials have now surpassed Baby Boomers as the country's largest living generation? 


 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