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

March 8, 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 (stever@ibanys.net) 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 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 and Northeast District Community Bank Compliance Officer Laura Lewis; 
  • NYS DFS Deputy Superintendent/Community & Regional Banks Yolanda Ford and Director of Consumer Compliance Mitchell Kent;
  • Steve King & Peter Rossi (Wolf & Company);
  • Charlie Graham (Volum8), and 
  • Jeffrey Cardone & Ben Azoff (Luse Gorman).
Through stand alone presentations, Q&A sessions and a concluding panel discussion, the conferences provide the opportunity to hear the federal and state examination & regulatory perspective, engage in dialogue and prepare for the chalenges ahead.
Click here to see full program and register


IBANYS Regional Conferences To 
Focus On Array Of 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.

board conference
. . .And, Sign Up For These Upcoming 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:  http://bit.ly/2kZTdVF

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.  It  provides both discussion and practical classroom exercises, and examines how  changing economic data impacts the bond market.  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, jreber@icbasecurities.com.

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


*     *     *     *     *
IBANYS'  2017 MEETINGS CALENDAR 
 
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
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GOVERNMENT RELATIONS
new york state capitol
ALBANY

Overview
The 2017-18 state budget process continues, leading up to the release of one-house budget bills next week by the State Senate and State Assembly. The final budget must be enacted by April 1. The Assembly's one-house budget will include small business tax cuts, increased research and development tax credits and changes to the  Excelsior Jobs Program. IBANYS discussed the items in the Governor's proposed budget that would impact community banks with our Board of Directors last week, and is preparing memos to address these concerns with the executive and legislative branches.

Meanwhile, the state Business Council is advocating for workers compensation reforms it says would produce significant savings to businesses and to state and local government, and would help offset increased costs caused by such recent policies as Paid Family Leave and a higher minimum wage. 

Legislative Update

The Assembly Banks Committee meets today, with a number of bills on the agenda, including: 
  • A.3389, Ortiz, which requires posting notice of the Department of Financial Services (DFS) toll free consumer's hotline telephone number. (Same as S. 2938, Hamilton)
  • A.5744, Zebrowski -- Provides that every banking institution maintaining checking accounts for customers shall pay checks in the order received within account balance. (Same as S 2797, Breslin)
  •  S.1602, LaValle -- Requires financial institutions to notify property tax assessors when they take possession of real property receiving a STAR exemption. (Same as A. 941 Thiele)
  • S. 4056, Carlucci  -- Prohibits issuers of credit cards and debit cards from knowingly accepting or soliciting financial information of a cardholder from a third-party. (There is no companion bill in Senate.)
At its initial 2017 meeting last week, the State Senate Banks Committee, approved S.2421 (Griffo)/ A.2729 (Lavine) to create the felony of bank robbery and increase the penalty for unarmed robberies. The Committee also approved  S.3756 (Savino) would exempt banking organizations with total assets of less than one billion, who have received a satisfactory or outstanding rating by their primary federal regulator, from the community reinvestment evaluation by the Department of Financial Services. The latter bill was part of IBANYS' legislative agenda. The Senate approved both of these bills last year.

Regulatory Update
On the state regulatory front, late last week marked the official publication of the final State Department of Financial Services'  cybersecurity regulation in the State Register. The regulation went into effect March 1, 2017. The revised proposal had been released  at the end of December, and reflected comments IBANYS submitted in response to the original proposal. We also testified on the proposed regulation at an Assembly hearing in December.    The final regulation largely follows the Revised Proposal. 


WASHINGTON, D.C.

Community Banks To Meet At White House 
ICBA will bring a delegation of community bankers to meet with Trump administration officials at the White House this week. In an interview on CNBC, ICBA President and CEO Cam Fine said the meeting will focus on regulatory relief through ICBA's Plan for Prosperity platform and how to spur small-business lending and job growth. He noted community banks have strong bipartisan support in Congress and at the White House. Fine noted ICBA is focused on regulatory relief that will support additional lending, such as relief from Qualified Mortgage and HMDA rules for institutions under $50 billion in assets. "We do have a seat at the table, and our voice is being heard. Small businesses create two out of three new jobs in America-all of that is being financed by your local community banks. And, believe me, Washington policymakers know that."

Meanwhile, ICBA will testify before Congress this week on the Small Business Administration's 7(a) loan program. Cynthia Blankenship, vice chairman, CFO and corporate president of Bank of the West in Grapevine, Texas, will testify on behalf of ICBA. The House Small Business Subcommittee on Investigations, Oversight, and Regulations hearing is scheduled for 11 a.m. Thursday.

CFPB Still In GOP's Focus
Folllowing the recent court decision that appear to have made it more problematic for the President to discharge CFPB Director Cordray, Congressional Republicans are utilizing other tactics to try to "constrain" the bureau. They are undertaking separate efforts through legislative processes to cut CFPB funding and roll back its past and future rules, and are reportedly considering a larger bill to dramatically impact the agency. "We fought a war to get rid of the king and now it's time to bring the unconstitutional CFPB's war on credit and war on consumer choice to an end. We will win this war," House Financial Services Committee Chairman Jeb Hensarling said in a recent speech. With other priorities such as health care taking center stage, c onsideration of the Financial CHOICE Act will likely not happen in the House until later this spring or early summer.  Meanwhile, Senate Banks Committee Chairman Crapo has not yet indicated exactly how he will approach financial and regulatory reform in his committee.

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). IBANYS has endorsed the PFP, and we encourage all new York community banbkers to take action by signing the petition below. The PFP 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!  http://bit.ly/2lYdRJU

White House Eyes Financial Regulations  
The Trump administration's initial efforts to attack financial regulations will reportedly include directing federal agencies to reverse changes made through guidance rather than formal rule-making. Mark Calabria, Vice President Pence's chief economist, also said t he White House is trying to fill vacancies at the banking-industry watchdogs "in short order." 

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February Jobs Report Exceeds Expectations
The February jobs report found that companies added jobs at a blistering pace. It showed a notable shift away from the service-sector positions that have dominated hiring in recent years. Employment in the private sector surged by 298,000 for the month, with goods producers adding 106,000, according to ADP and Moody's Analytics. Construction jobs swelled by 66,000 and manufacturing added 32,000. The report encompassed the first full month under President Trump. January's report showed that 261,000 positions were added, revised upward from the originally reported 246,000. February's 298,000 total shattered market expectations of 190,000, and likely solidified expectations that the Fed may hike interest rates next week.

Mortgage Market Update: UP
Total mortgage application volume rose a seasonally adjusted 3.3% last week from the previous week, according to the Mortgage Bankers Association. Volume remains 18% lower than the same week one year ago. Refinance volume is off 34% annually, but was up 5% for the week, seasonally adjusted. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less increased to 4.36% from 4.30%, with points increasing to 0.44 from 0.38, including the origination fee, for 80 percent loan-to-value ratio loans. Mortgage applications to purchase a home, which are less sensitive to weekly rate moves, inched 2% higher for the week and are about 4% higher than a year ago. The ARM share of mortgage applications last week reached its highest level since 2014. The average loan size for purchase applications also hit a survey high of $313,000, as entry-level buyers are factoring less into sales and move-up buyers are dominating the spring market.

Potential Windfall?
Banks may stand to gain as much as $218 billion in excess capital as a result of regulatory cuts under the Trump administration, according to an analysis by Goldman Sachs. Changes in banking regulations could result in a big windfall for the industry, much of which would make its way into investors' pockets. In a best-case scenario, slashed regulations would result in as much as $218 billion in excess capital which "could either be returned to shareholders or reinvested..." 


INDUSTRY & ASSOCIATION INSIGHTS


Former IBANYS & ICBA Chairman John Buhrmaster Talks Regulatory Relief On NPR 
NPR's "All Things Considered" recently ran a segment aboutb about bank regulatory relief that IBANYS Immediate Past Chairman John Buhrmaster (President & CEO, 1st National Bank of Scotia). John also served as ICBA Chairman 2014-2015. Click the link below (or copy and paste it in your browser) to access the page with the audio embedded.



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. For all the details, visit ICBA's GoLocal webpagehttps://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 webpage We hope you join us in promoting Community Banking Month. Let us know if you have any questions or require additional information.

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  www.icba.org/auction  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  auction@icba.org
 
 
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 www.icba.org for details.

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 
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:
https://financialedinc.com/a/ibanys/category/live

. . .Vanacore, DeBenedictus, DiGovanni & Weddel
Vanacore, DeBenedictus, DiGovanni & Weddell, LLP, CPAs enjoys a 40 year history of providing audit, tax, accounting, and business development consulting services to business owners in the Hudson Valley and New York Metropolitan area. They are one of the largest public accounting firms in the Valley, with offices in Newburgh, Middletown a nd Wappingers Falls, New York. Their highly qualified team of 68 including 31 CPAs and 14 partners, and serves a variety of clients and our size, strength, and resources allow us to provide them with the personal attention they deserve. In order to provide clients with the highest-quality professional services, the firm is organized into five principal divisions: accounting and auditing, tax services, consulting and special projects services, accounting support services, and computer consulting. The firm provides year-round service in a business advisory role to fulfill present and emerging needs of clients.  The firm is also a member of RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States, with more than 75 members in over 38 states, the Cayman Islands, and Puerto Rico. In effect, they can offer the responsiveness of a local firm, with the national resources of one of the nation's largest accounting and consulting firms. They have access to a valuable peer network of like-sized firms as well as a broad range of technical tools, expertise and practice management resources, including:
  • Technical resources
  • Marketing and business development
  • Practice management
  • Talent management and career development
  • Dedicated client services
  • Networking opportunities
For details, contact: Tom Craven, Specialist: 
(845) 567-9000 X209, tcraven@vddw.com. Or visit the website at  www.vddw.com.


 
. . .that 200 years ago today -- March 8, 1817 -- the new York Stock Exchange was founded? Did you also know that 104 years ago today -- March 8, 1913 -- the Internal Revenue Service began to levy & collect income taxes?


 

 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