Your IBANYS Team: 
Working Together To Make 2017 A Great Year 
For New York C ommun ity Banks !
 
In This Issue

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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

March 22, 2017


This week, IBANYS is hosting our two Regionbal Compliance Conferences in Rochester and the Capital District Wednesday and Thursday, then
John Witkowski
holds a Government Relations Committee conference call Friday morning for updates on the state budget negotiations--particularly the items directly impacting New York community banks. 
More than 40 registrants from nearly 20 banks signed up for the compliance meetings with top legal and business consultants, and senior federal and state regulators from the FDIC, OCC and NYS DFS.

New York State Department of Financial Services' Mitchell Kent, Director & Counsel, Consumer Compliance, and Yolanda Ford, Deputy Superintendent for Community & Regional Banks addressed IBANYS Compliance Conferences.

Over the next three months, IBANYS will host: 
  • Our Regional Directors Conferences April 11 in Rochester and April 12 in the Capital District: CLICK HERE)
  • our Lending Conference May 9-10 in Syracuse ( CLICK HERE for program and registration, and HERE for sponsorship opportunities) 
  • and finally, our CFO/Senior Management Conference June 7-9 at The Thayer Hotel at West Point ( CLICK HERE for details and registration, and HERE for sponsorship opportunities).
  • With the new landscape in Washington, and momemtum building for tax reform and regulatory relief, it's important for New York community bankers to join IBANYS in Washington, D.C. for ICBA's Capital Summit April 30 - May 3 in Washington, D.C. It's a once-a-year chance to meet with New York Congressional Delegation in their offices "on the hill" to advance our agenda. Please signup at icba.org, then email Steve Rice (Stever@ibanys.net) to sign up for congressional visits. 
  
Sign Up Today For IBANYS Regional Directors Conferences In April . . .   

Next up for New York Community bankers: IBANYS' bank directors' regional conferences. Community bank directors must cope with evolving customer demands, contending with shrinking margins and reduced fee income -- and dealing with increased regulatory burdens and costs. Bank directors need to help their institutions navigate 2017's new landscape.  IBANYS' Directors Conferences on Tuesday, April 11 (Rochester) and Wednesday, April 12 (Capital District) are one-day sessions on a number of timely issues, including the latest Enterprise Risk management (ERM) developments. We'll provide tools to help directors identify what they must know concerning regulation, oversight and strategic planning to enhance their banks' growth and profitability. They are designed for bank directors, CEOs, CFOs and other senior bank officers. Note: Attendees can earn up to 7.5 CPE credits. Speakers include. Click here to register. 



. . .These Upcoming Webinars 
& Seminars

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 --  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.  For details, contact Mike Gunther: (518) 331-9677 michael.gunther@necb.edu.

"CRA Training 101 For Bankers"
Mark your calendar for the "Interagency CRA 101 Training for Bankers" on Thursday, April 20 (8:30 a.m. to 4:00 p.m.) -- offered jointly by the FDIC, OCC and NYS DFS. It will be held at the FDIC offices at 350 Fifth Avenue in Manhattan (Suite 1200). Watch for formal invitations from the regulators. For information, contact Yulitza Franklin, Principal Community Development Analyst at NYS DFS: 
(212) 709-1699, yulitza.franklin@dfs.ny.gov.
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GOVERNMENT RELATIONS

ALBANY

Latest On State Budget Negotiations 
One-house budget bills from the State Senate and Assembly are out, and serious negotiations will now proceed among legislative leaders and the Governor's office. T he Budget is due by April 1. Click here for an update on the current status of some of the key provisions that would directly impact New York community banks.  On general budget parameters, legislative leaders on
Monday began the "mothership" meeting heading into the final two weeks of negotiations on the budget.  Following the joint meeting and conference committee meetings, Senate GOP Majority Leader Flanagan, Senate IDC Leader Klein and Assembly Speaker Heastie previewed a number of the top issues, including  the millionaires' tax and various taxes and fees.  Also on the leaders agenda: the Governor's effort to authorize the State Division of Budget to make mid-year changes.

State Attorney General Eric Schneiderman's office has been tracking data breaches for more than a decade. According to Schneiderman, last year, says AG Eric Schneiderman, saw a nearly 60% rise in data breaches.

WASHINGTON, D.C.

The latest reports indicate Joseph Otting (a former associate of Treasury Secretary Steven Mnuchin at OneWest Bank), may be in line to be nominated as Comptroller of the Currency. The OCC is currently led by Thomas Curry, whose term ends next month. The next Comptroller is expected to play a significant role in carrying out Trump's promise to roll back regulations.  President Trump is also reportedly strongly considering Thomas Vartanian to join the Federal Reserve Board of Governors as the Fed's vice chair for supervision.  Vartanian is a well-known figure in the  regulatory world.  His four-decade career includes stints at regulatory agencies, including at OCC in the Reagan years, and in the private sector representing banks. He also has ties to OneWest Bank. The positions both require Senate confirmation.  Meanwhile, the  Fed, OCC and the FDIC told Congress they are developing a framework aimed at easing capital requirements for small banks. 

FDIC's Positive News
FDIC Chairman Gruenberg stated at ICBA's Annual Convention that the FDIC Deposit Insurance Fund balance rose to $83.2 billion at year-end 2016, an increase of $10.6 billion over the previous year. The DIF reserve ratio was 1.20%, the highest reserve ratio in nine years.  Gruenberg said the DIF reserve ratio is expected to reach 1.35%in 2018, about two years ahead of its statutorily required schedule. Community banks under $10 billion in assets will receive credits for the portion of their assessments that contribute to the increase in the reserve ratio from 1.15% to 1.35%.

Take Action! Sign The Petition To 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). IBANYS has endorsed the PFP, and we encourage all New York community banbkers to take action by clicking on the following link: http://bit.ly/2lYdRJU

Survey: Mixed Signals On 
Timing For Full Dodd Frank Reform--
Optimism For Community Bank Reg Relief
CNBC reports that a Reuters "survey of bank lobbyists" found diminished hopes for a quick, comprehensive rewrite of the Dodd Frank Act. Respondents acknowledged bank deregulation must wait behind priorities like healthcare reform and taxes. Many believe there will be actions to help banks, but perhaps not the total dismantling of Dodd-Fran k. Some noted even if the House does rewrite Dodd-Frank, the Senate would be challenged to pass across-the-board overhaul. Senate Banking Committee Chairman Crapo (R-ID) has downplayed immediate expectations; in the House, Financial Services Chairman Hensarling has not yet moved his proposal to overhaul the Act.  On a positive note, respondents believe "there is bipartisan appetite for easing capital formation rules/reducing the regulations for smaller (community) banks and credit unions. Many also said congressional Republicans may address specific parts of Dodd-Frank, such as gaining control over funding of the CFPB through a budget process. IBANYS members: Come to Washington April 30 - May 3 for the ICBA Capital Summit and advocate for passage of ICBA's "Plan for Prosperity" (endorsed by IBANYS). It would provide real regulatory relief for community banks, and economic growth for their customers communities. 



The Bank Of Akron:
Proud History. . .Bright Future!
President & CEO E. Peter Forrestel II (l.) with COO Anthony Delmonte Jr., who will succeed him April 25

Excerpt from the March 17 Buffalo News in-depth article on the T he Bank of Akron. " Tradition runs deep at the Bank of Akron.  The bank is headquartered in the same Main Street building it has called home since 1927, within walking distance of a pharmacy, an ice cream shop and insurance offices. A portrait of the late Eugene P. Forrestel, who served as president for 43 years, hangs near the entrance, watching over the institution he saved decades ago.  His grandson E. Peter Forrestel II is now the president and CEO. In the lobby, he greets a customer who once lived three doors down from him. He hails another customer and mentions to a visitor he also knows the woman's parents and grandparents. 
This a bank that has changed with the times - opening four additional branches, adding digital features customers crave - but navigates change carefully. It helps explain how the 117-year-old bank has remained alive and independent, against economic downturns and the forces of consolidation." On April 25, COO Anthony Delmonte Jr. will succeed E. Peter Forrestel II as President & CEO, becoming the first person not named Forrestel to lead the bank since the early 1930s. To read the full article  click here.


New York Fed's Dudley: "Compensation 
At Center Of Scandal"
William Dudley, president of the New York Federal Reserve Bank, yesterday cited  Wells Fargo & Co 's accounts scandal as evidence that incentives to drive performance remain a problem on Wall Street. Dudley noted that banks have "a long way to go" in reforming internal culture. In a speech to bankers and regulators in London, Dudley stated that the Wells case showed that "compensation, once again, seems to be at the center of a scandal. Incentives shape behavior, and behavior drives culture."

Mortgage Update: Volume Down, 
ARM Market Up
Total mortgage application volume fell 2.7 % last week from the previous week, according to the Mortgage Bankers Association. The seasonally adjusted tally stands nearly 12% lower than a year ago.  Mortgage rates are nearly three-quarters of a percentage point higher than on Election Day. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less remained at 4.46%, with points increasing to 0.41 from 0.37, including the origination fee, for 80% loan-to-value ratio loans. Home prices continue to rise far faster than incomes. Borrowers are turning to shorter-term, adjustable-rate loans that offer lower interest rates. Their share of total applications has doubled to 9% since the election, the highest level since October 2104. 

OCC's Curry Cites "Continuing need For Community Banks"
In a speech this week, Comptroller of the Currency Curry described the "diversity" of banking entities in the American financial system, and highlighted the continuing need for effective mutual savings associations and community banks. The Comptroller cited changes to the Call Report that streamline reporting for community banks as a positive example of relieving undue regulatory burdens on smaller banking entities.
He also called on Congress to act on a number of deregulatory proposals, including exempting community bank and thrifts from the Volcker Rule  and increased flexibility for thrifts to expand their business model.



April is Community Banking Month 
...When we traditionally celebrate the many contributions of community banks throughout New York State, and across the country.  Each year, ICBA develops material designed for community banks to spread the word about the benefits and advantages of banking locally and supporting locally-owned businesses. 
V isit https://www.icba.org/go-local to review information and stories on the value of banking, shopping and dining locally. ICBA has put together a "Community Banking Month Toolkit". . . Visit the www.icba.org/srpresources webpageWe hope you join us in promoting Community Banking Month. Let us know if you have any questions or require additional information.

ICBA Convention a Success -- 
New Yorkers Had A Presence!  
Last week's ICBA Annual Convention in San Antonio, Texas was a major hit. . .and New York community banks helped contribut to the success with a strong showing of 9 bank CEO's as well as a number of guests in attendance. The IBANYS delegation led by President & CEO John Witkowski networked with peers from across the country, and took advantage of the opportunity to visit with many of our associate members exhibiting at the convention. The IBANYS team was also busy looking for new opportunities for companies join the IBANYS family. Congratulations to ICBA for a terrific convention!


Congratulations To Bob Fisher. . .
Bob Fisher (President & CEO,Tioga State Bank) enjoyed record-setting success as co-chair of the 2017 ICBA Annual Convention's Silent Auction to support the Independent Community Bankers BobFisher Political Action Committee (ICBPAC), the non-partisan political action committee of the ICBA. Under Bob's leadership, a record $537,000 was raised! ICBPAC is the only federal PAC dedicated exclusively to representing community banks, and strengthens the community banking industry's reputation in Washington. Bob, a former IBANYS Chairman and current board member, also does an outstanding job as co-chair of NYSIBPAC, IBANYS state PAC that supports New York State candidates and officials. Which is a perfect segue to. . . 
 
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?

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 

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 2017 Webinars: 
For  New York Community Banks 

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

. . .Security Management Partners
Security Management Partners is an IT Security Audit and Assessment professional consulting firm with a singular focus on providing security services to identify, test and provide remediation advice to eliminate external and internal information security risks.  Founded in 2001, Security Management Partners is a leadingfull-service IT assurance firm, specializing in information security audits, assessments and regulatory compliance consulting to the  corporate, healthcare, biopharma, and financial industries . A proven, independent advisor to large, overseas corporations and small, local businesses, SMP is known as a trusted advisor who helps identify threats and vulnerabilities, quantify risk and provide risk mitigation strategies for your information assets.  In a new era of cyber security, SMP serves as your trusted advisor, able to identify threats and vulnerabilities, quantify risks and provide mitigation strategies in order to protect your information assets.  Call Security Management Partners toll-free at 1-855-767-6631,  or, visit the website at  www.smpone.com.

 
. . .that with 52,000 locations nationwide, community banks employ 760,000 Americans, hold $4.7 trillion in assets, $3.7 trillion in deposits, and $3.2 trillion in loans to consumers, small businesses, and the agricultural community?


 

 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