Your IBANYS Team: 
Working Together To Make 2016 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 2016 PAC contribution form. Help support IBANYS' political action efforts in New York State.

Partner
March 30, 2016

NEWS FROM IBANYS

   
. . .Our IBANYS  Preferred Providers?

The Independent Bankers Association of New York State is proud to be affiliated with our preferred providers. These firms provide expertise, products and services that support and enhance New York community banks. We encourage our members to take advantage of these great partners! Check out their websites, which are linked below.

Continuity Control is a compliance management System for community banks that reduces the time, cost and risk impacts of regulation by automating the entire regulatory lifecycle: 

Pentagra, with more than 70 years of experience, offers a broad array of retirement plan solutions and fiduciary services, including BOLI and Non-Qualified Plan Solutions: 

T. Gschwender & Associates, Inc. is a diversified consulting company providing a highly sophisticated "Credit Department" for all functions: from initial borrower due diligence to collateral liquidation: 

Wolf & Company, a full-service accounting firm, provides IT assurance & security services (cyber security, disaster recovery/continuity, security practices & incident response), outsourced/co-sourced internal audit services, regulatory  compliance services & risk management services :
                       
Announcing Fast, Simple Online Loans from Excelsior Growth Fund
IBANYS is pleased to announce a new partnership with Excelsior Growth Fund (EGF), a nonprofit Community Development Financial Institution formed by New York Business Development Corporation (NYBDC). EGF has been endorsed by IBANYS as the exclusive online lending partner for association members.
About Excelsior Growth Fund
EGF provides innovative financial solutions and business advisory services to underserved small businesses in New York State through a fast, simple and secure online lending platform. Its core product is the EGF SmartLoan™, which features amounts up to $100,000, approvals within 1-2 days and disbursements within one week. Importantly, interest rates a fraction of those typically offered by online lenders.
Helping Banks Serve Customers
EGF offers banks a unique customer retention solution when a customer either does not qualify for a bank's loan offerings, or is seeking the fast, transparent process available through online lenders. To facilitate retention, EGF shares performance information on the referred loan portfolio on a quarterly basis and offers the opportunity for the bank to purchase referred loans at par at any time.  "We are proud to be partnering with IBANYS to offer access our online product through referrals from  IBANYS member banks.  We think this an important and timely for their small business customers." says Pat MacKrell, CEO of Excelsior Growth Fund and NYBDC. "EGF not only provides a solution that helps more small businesses access affordable online capital, but a tool to help banks build strong customer relationships." IBANYS President & CEO John Witkowski added: "We believe this partnership with EGF and the NYBDC will benefit both New York community banks and their small business customers. We look forward to working together to enhance small businesses throughout our communities."
Learn More
Additional details on the EGF SmartLoan, including eligibility criteria, are available at: 
http://excelsiorgrowthfund.org/egf_smartloan/. 
For more information or to make a referral, please contact Bryan Doxford, Chief Lending Officer at Excelsior Growth Fund: 
[email protected] or (212) 430-4512
   
Join IBANYS in D.C. For  Key Meetings! 
IBANYS Members: Now is the time to register with ICBA for next month's Washington Policy Summit (Sunday evening, April 24 - Wednesday morning, April 27). This is the one time all year for New York community banks to meet with our U.S. Senators and Representatives in their offices "on the hill." We'll also hear from  FDIC Chairman Martin Gruenberg;  Office of the Comptroller of the Currency Comptroller Thomas Curry;  Consumer Financial Protection Bureau Director Richard Cordray;  U.S. Small Business Administrator Maria Contreras-Sweet;  Senate Banking Committee Member (and strong community banking supporter) Jerry Moran (R-KS);  Federal Reserve Board Associate Director/Banking Supervision & Regulation Kevin Bertsch, and Managing Counsel of Supervisory Policy & Outreach/ Division of Consumer and Consumer Affairs Amy Henderson; P olitical analyst Larry Sabato, Director of University of Virginia Center for Politics.  IBANYS is now scheduling our meetings with members of the New York Congressional Delegation, including key senior members of the Financial Services Committee.  We will be advocating for community bank priorities and issues, including regulatory relief through ICBA's "Plan for Prosperity" which  IBANYS supports; reform of the Consumer Financial Protection Bureau (CFPB) and its mortgage regulations; opposition to costly new accounting standards, and elimination of the credit union industry's federal tax subsidy and the abolition of the Farm Credit System.

EDUCATIONAL PROGRAMS

IBANYS Programs Designed For 
New York Community Banks
One of the most important functions IBANYS provides to our members is education. Through our conferences, seminars, webinars and publications, we hope to keep you informed and up-to-date on the important trends, developments and activities impacting New York community banks. We are holding our Regional Compliance Conferences this week in Rochester and the Capital District. In the weeks and months to come, we will hold regional Bank Directors Conferences in April, our CFO/ Senior Management Conference in May and our second annual Lending Conference in June. In October, we will hold our Annual Convention, and our Regional Security Conferences.  We also offer a full menu of webinars designed specifically to meet the needs of community banks (see our link later in this newsletter), and also offer select webinars offered by outside experts. We thank the efforts of our member banks, who work closely with staff to develop program content that is timely and relevant to their institutions and our industry. 

IBANYS' 2016 events may be viewed online
at www.ibanys.net under "education/upcoming meetings". We provide CPE credits, and offer New York community banks the latest information and tools for profitability and success. Our preferred provider partners and associate members enjoy unique opportunities for networking,  sponsorship & exhibiting opportunities.   

Have a look at what lies ahead, then sign-up!

 
IBANYS' 2016 events may be viewed online
at www.ibanys.net under education/upcoming meetings. They provide CPE credits, and offer New York community banks the latest information and tools for profitability and success, feature unique networking opportunities and afford our preferred providers, partners and associate members valuable sponsorship & exhibiting opportunities.  
  
 
Regional Bank Directors Conferences: 
Solve The Puzzles
Board members of New York community banks face growing challenges in the aftermath of the latest banking and financial crisis. As the number of community banks have declined nationally, the burdens imposed by federal and state regulations had increased. So too has the cost of doing business and serving our customers and communities. Now, with serious issues related to cyber security, pressure on earnings and the current interest rate environment, banks must ensure their directors, officers and senior management teams are fully informed and prepared to cope with these challenges with the tools and strategies they need to survive and thrive. IBANYS' Regional Directors Conferences April 13 and 14
in Rochester & Castleton (Albany) will update your bank's board members on a number of important and timely issues and trends.    
 
Our agenda will include: 
  • Shareholder Succession: Is This The Way Out Of Consolidation?
  • How Banks Should Make The Decision To Buy Or Share
  • Making Sense Of A Nonsensical World
  • CECL & The New Capital Impacts Facing Community Banks
  • Cyber Security: The Challenge Of IT Governance
  • Strategic Planning: It All Begins & Ends 
  • A Question & Answer Session
Our Speakers Include:
  • T.W. Shannon (Managing Director, Premier Consulting Partners)
  • Heather Archer Eastep (Partner, Hunton & Williams)
  • Michael Jamesson (Principal, Jamesson Associates)
  • Randy Rabe (Director, Credit Risk Management)
  • Jordan Pike (Director of Security, ncino)
  • Karl Nelson (Founder & CEO, KPN Consulting)
 
 
CFO/Senior  Management Conference  
May 9-11 at the Harbor Hotel, 
Watkins Glen, NY
This conference was developed with the input from IBANYS' CFO Peer Group and reflects key topics, issues & challenges important to our industry. CEOs, CFOs, COOs,  Presidents, Senior Managers, Bank Directors and ALCO teams should plan attend. The program was designed to help community banks gauge the potential impact of higher interest rates, prepare for the final guidance on the FASB's current expected credit loss model, change the culture surrounding enterprise risk management and gain insights on how to approach key strategic issues including cyber security, credit stress testing, and succession planning. Participants can earn up to 11 CPE hours (1.0 in taxation). We'll have g olf, networking opportunities during breakfast, lunch, cocktail receptions and dinners -- including a reception/dinner cruise on Seneca Lake. This is also a chance for our associate members & preferred providers to sponsor an event, and be recognized throughout the event. Please click on links below with details on the program, registration and sponsorship.  
             
Please note : A block of rooms have been reserved at the Harbor Hotel Watkins Glen.  Reservations can be made by contacting the Harbor Hotel Watkins Glen directly at (607) 535-6116. Refer to group: Independent Bankers Association of NYS: CFO/Sr. Management Conference.  Room cut-off:  April 15. (We cannot guarantee room availability and pricing after this date.)  Single/Double rate: $159 ++village view/$179++ lake view.  We strongly recommend you make your hotel reservations early. Rooms will sell out; we cannot guarantee availability and pricing after this date. Any  cancellations must be made seven days prior to arrival. 

The Program Will Feature: 
  • Monday Evening Dinner Keynote Address by John Edelen, SVP & Chief Risk Officer, Federal Home Loan Bank of New York
  • Economic & Capital Markets Update, by Gary Keith, Chief Economist with M&T Bank
  • Deposit Analysis: Crucial Element In Understanding Your IRR Problem, by Al Forrester, CEO, FICAST Data Corp.
  • Succession Planning: Developing The Next Generation Of Community Banking Leaders, by Flynt Gallagher, President, Compensation Advisors 
  • Revenue Enhancement: It's Not What You Think, by Lawrence Pruss, SVP & Revenue Expert, Strategic Resource Management (SRM)
  • Historical Tax Credit Deal-Is This Something Our Bank Should Invest In? by Roger Upton, MS Consultants
  • Credit Stress Testing: What Examiners Expect, and Steps To Deliver, by Shawn O'Brien, President, Qwickrate 
  • The New ALLL: A CECL Primer For CFOs, by Peter Brown, Senior Consultant, Sageworks
  • Managing Your Investment Process: Best Practices For Assuring Consistency & Success, by Greg Roll, Senior Vice President, Investment Strategies, Vining Sparks
  • Public Funds: Enhancing Your Deposit Business In 2016, by Joe Hooker, Managing Director & Kevin Hamilton, Regional Director, Promontory Interfinancial Network
  • Bank Cybersecurity: State Of The Threat Landscape, by Alex Hernandez, Vice President, Customer Solutions, Praesidio
  • Strategies for Successful Partnership Between Internal Audit, ERM and the Business -- How To Maximize The Value From Your Risk Functions, by Larry Hessney, CIA, CISA, PCI, QSA, Director-Risk 7 Technology Consulting Servixes, Freed Maxick
  • We'll have networking opportunities at refreshment breaks, breakfasts, lunches and dinners.
 
Click HERE for sponsorship opportunities.
 
 
 
Annual  Lending Conference
Join us June 28-29 at the Woodcliff Hotel & Spa in Fa irport  (Rochester) for our Second Annual Lending Conference, which is co-sponsored by T.Gschwender & Associates. Who should attend? Loan Officers, Mortgage Officers, Consumer Lending Officers, Commercial Lending Officers, Credit Officers, CFOs and other members of the bank's management team involved in there credit and lending process. The program  will review all aspects of the lending process, with presentations and discussions on loan review, risk, sales, portfolio management and the impact of CECL. 
 
Presentations will include:
  • Outlook for Credit & Bank Profitability,
    with Chris Nichols, Chief Strategy Officer, CenterState Bank
  • Credit Stress Testing: What Examiners Expect, and Steps To Deliver, with Shawn O'Brien, President, QwickRate
  • The New ALLL -- A CECL Primer For Lenders, with Emily Bogan, Director of Consulting, Sageworks
  •  The Loan Portfolio Dilemma: Funding Fixed Rate Products, with a representative from the Federal Home Loan Bank of New York
  • Mortgage Pipeline Management Best Practices, with Robert Perry, Managing Director of ALM First
  • The Role Of Risk Tolerance and Risk Culture In Managing Portfolio Credit Risk, with David Ruffin, Co-Founder & Managing Partner, Credit Risk Management Analytics
  • Friend Or Foe: The Rise Of Peer Lenders & What It Means For Banks, with Armistead Boyd, VP of Product Marketing, nCino
  • Managing Credit Risk, with Bharpur "Bo" Singh, President & Owner, T.Gschwender & Associates
  • The Loan Participation Puzzle: The Key To Diversification, with Lori Betting, Executive Vice President, Alliance Partners
  • Navigating The Headwinds Of Change: Lessons Learned From The Great Recession, with Karl Nelson, Founder & CEO, KPN Consulting
Watch for additional updates on speakers, further details on program agenda and registration information.
 
 
IBANYS Annual Convention: 
Oct. 3-5,  The Turning Stone
IBANYS' 42nd Annual Convention -- our premier educational meeting and business show of the year -- will be held at The Turning Stone October 3-5. We'll have a full menu of top notch speakers and presenters, including Steve Greenberg, a veteran political analyst and commentator who will preview the critically important 2016 election for community banks. With every member of the New York State Legislature and New York Congressional Delegation up for election, and control of the State Senate expected to be hotly contested, it will be a timely presentation.    

We'll also hear from keynote speaker Ray O'Conor . Ray is a former President of Saratoga National Bank & Trust and former IBANYS Chairman. He is the author of  She Called Him Raymond: A True Story of Love, Loss, Faith and Healing --   a candidate for the 2016 Pulitzer Prize for non-fiction.  Ray has also null been a newspaper columnist, Special Agent with the U.S. Department of Defense and U.S. Border Patrol Agent. His presentation will share the story behind his book, and provide a look into the true tale of two ordinary people who led extraordinary lives during the most tumultuous of times.  Plus, we'll also hold our business show, silent PAC auction and much more! Watch for program details and sponsorship opportunities.

IBANYS Members: Take Advantage!
Last year IBANYS introduced two exciting new initiatives to benefit member banks, We encourage you to take full advantage of them. 
  • The "My Wellness Resource Card" offers a low-cost, non-traditional program to help community banks to save time and money. It helps provide on demand health care from U.S. board-certified doctors who provide diagnosis, treatment options and necessary prescriptions via unlimited telephone medical consultations. The My Wellness program offers discounts and significant savings on a variety of medical and dental products, and is designed to improve productivity, decrease absenteeism and boost morale without straining your bottom line. It's an exciting new way for community banks to provide health care benefits, reduce cost and retain employees. For more information, contact Alan Justin, Managing Partner at (716) 907-5500. 
  • We also joined the "Cure the Blue" effort to raise funds and awareness regarding prostate cancer in New York State. We are partnering with the Buffalo Bills Alumni Foundation, and hope to see a number of IBANYS members participate. Please join us in supporting this worthwhile cause. Visit www.curetheblue.com to get involved!

GOVERNMENT RELATIONS UPDATES

new york state capitol
IN ALBANY 
  • With state budget talks headed to conclusion, there is talk of a tax cut of at least a half a percentage point for New Yorkers reporting income of less than $300,000 annually. 
  • The budget negotiations are at an impasse at the moment over medicaid cost shifts/ funding related to New York City. proposed by the Governor. 
  • Negotiations over a minimum wage increase continue. It does not appear there will be a "carve out" for small businesses, but a "safety valve" is possible to freeze implementation. The Governor would increase the minimum wage to $15 an hour by 2018 in New York City and by 2021 in Westchester, Nassau and Suffolk Counties. It would go to $12.50 for upstate areas by 2021, with an effort to reach $15 by 2023, though there was no agreement on what formula would be used to increase or index it. 
  • Once the budget is in place, hopefully by the April 1 deadline, there will be 27 legislative days scheduled until the Legislature is scheduled to adjourn for the year on June 16.

IN WASHINGTON
  • The FASB has named Monroeville, Pennsylvania community banker and ICBA leadership member Tim Zimmerman to its advisory council on the Current Expected Credit Loss (CECL)  accounting model. ICBA called the appointment "a major success" for community banks.
  • A bipartisan coalition in the House (131 members) expressed deep concern to federal regulators over the impact on community banks of expanding regulatory burdens. They called for regulations tailored to the differing business models, risk profiles and compliance resources of the regulated institutions. New Yorkers Greg Meeks (D-Queens), Peter King (R-LI), John Katko (R-Central NY) signed the letter. Another recent letter from 329 House members urged the CFPB to reduce the regulatory burden on community banks. IBANYS and ICBA support tiered regulations.
INDUSTRY INSIGHTS 

Western New York Bankers "Optimistic" 
On Commercial Lending 
A March 4 article in the Rochester Business Journal noted the area's bankers are "heartened by various economic indicators"  and "optimistic about commercial lending's outlook in 2016." Some even expect to see growth across all market segments.  "I think things look pretty positive right now," said Philip Pecora, president and CEO of Genesee Regional Bank. "The economy-although not going gangbusters, it's fairly stable. ... Our clients are doing well in general, and they are making some investments, so we see that translating to our prospective clients as well."  The article noted although commercial clients now have various capital sources, including online lenders, local community banks are holding their own.  "I think a lot of the companies and small businesses out there realize and recognize that the community banks are really trying to work with them and work for them," says John Witkowski, president and CEO of the Albany-based Independent Bankers Association of New York State Inc. He added, "A lot of the commercial customers realize, it's (about) relationships." 

Mortgage Applications Are Down 
Mortgage applications fell 1% last week from the previous week, according to the Mortgage Bankers Association. It was primarily due to a 3% drop in refinancing, whose  share of mortgage applications fell to its lowest level since July as interest rates inched higher. Rates for 15-year fixed rate mortgages rose slightly to 3.19%. The average rate for a 30-year fixed rate mortgage increased by a tenth of 1%, to 3.94% for loans $417,000 or less. Loans for more than $417,000 ("jumbo mortgages") fell 3.82%. 

Yellen: Fed Should Proceed With Caution
Federal Reserve Chairman Yellen said yesterday that the Fed should proceed with caution in adjusting policy. She noted that economic and financial conditions are in some respects less favorable now than in December, and  that recent readings on the strength of the U.S. economy since the beginning of the year have been mixed. Chair Yellen added research suggests that, with a funds rate at zero and increased uncertainty, the best policy is greater gradualism. She noted the Fed can hike if the economy grows faster, but said if the economy falters, the Fed can "provide only a modest degree of additional stimulus."

ICBA's Fine Rebuts Newspaper
On Community Banks & Cyber Security
ICBA's President & CEO Cam Fine responded to a recent article in The Boston Globe that stated small banks face the greatest risk from hackers. Fine wrote: "For America's community banks, the protection of their customers' personal and financial information is serious business and the cornerstone of their day-to-day practices. To safeguard their customers' information, community banks work on many levels to achieve strong cybersecurity preparedness. The vast majority of community banks also actively share cyberthreat information and mitigation techniques with other banks and educate consumers about protecting themselves from such threats. Community banks are subject to federal data security laws and are highly regulated when it comes to cybersecurity and overall protection of customer information. Regulators routinely examine community banks' customer information security policies and practices, cybersecurity controls, and business resiliency plans to ensure that cybersecurity risks are mitigated."

IBANYS Webinars: Specifically Designed For Community Banks   

 
New York's community banks cope with a wide array of challenges. Your bank's officers, board members and employees know their responsibilities and potential liabilities are not about to diminish. Are you doing everything you can to ensure that they have access to the very latest information and tools they need to meet their responsibilities, and to properly prepare the bank for the future?  One way to do so is by signing them up for IBANYS' webinars. Our programs are specifically designed to meet the needs of community banks, and are both effective -- and, cost-effective. Your bank's officers, directors and employees can participate directly from their offices. There's a good reason  why a rapidly growing number of your industry and association peers are taking advantage of these webinars.

Review  our upcoming programs by clicking the link below:
https://ibanys.fed.financialedinc.com/store/webinar 

IBANYS Spotlights
 
. . .Main Street Member Services 
Main Street Member Services has provided checks and accessories to financial institutions for nearly 20 years. They offer products at competitive prices and a seamless level of service. Each of their clients receives a personalized experience, from their customized check programs to their dedicated client services teams. For details, contact Chief Marketing Officer  Lisa Beck at  (205) 380-4000,

  DID YOU KNOW. . .
. . .That w ith 51,000 locations nationwide, community banks employ 700,000 Americans, hold $3.8 trillion in assets, $3.1 trillion in deposits, and $2.6 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