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 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.


May 10, 2017

. . .to our most recently renewed associate members. We appreciate your continued participation and support -- of IBANYS and our New York community banking industry. 
  • UHY Advisors N.Y., Inc.
  • Sandler O'Neill & Partners, LP

. . .The very latest updates: from Albany, Washington, D.C. and on the trends and issues impacting community banks and the business, banking & economic climate. . .


Legislative Leaders Talk End Of 
Session Priorities
For the rest of the 2017 legislative session, set to end in late June, GOP Senate Majority Leader John Flanagan (R-L.I.) said his focus would be on such "core quality of life issues" as providing clean water and improving infrastructure. Assembly Speaker Heastie (D-Bronx)  said Assembly Democrats would continue to pursue a "family first agenda" on issues such as immigration and child care. Meanwhile, Governor Cuomo said last month that "everything big" he wanted to get done this year was passed in April's state budget. 

IBANYS: Credit Unions Do Not Belong In 
State BDD Program
IBANYS has prepared a memorandum in opposition to legislation (A.6949, Zebrowski/ S.5308, Hamilton). The bill would amend the New York State Banking Law to include credit unions and federal credit unions as allowed participants in the Banking Development District (BDD) Program. The sponsors chair the Assembly and Senate Banks Committees, and the legislation is a Financial Services Department program bill.  Click here to read the full text of the memo. 


Financial CHOICE Act Passes First Hurdle
The House Financial Services Committee approved Chairman Hensarling's proposed the "Financial CHOICE Act" bill (H.R. 10) last Thursday by a party-line vote of 34-26. The Act will be considered by the full House in the coming weeks. The bill faces an uncertain future in the closely divided Senate (where even Chairman Hensarling has noted there is a "different dynamic"). The legislation would make major changes to both the Dodd-Frank and Consumer Protection Acts and other financial regulatory laws. The Trump Administration has generally supported it, although it is unclear how similar the bill will be to Treasury's recommendations on financial regulatory reform, expected in early June.

ICBA To NCUA: "Withdraw Alternative 
Capital Proposal"
ICBA has written to the National Credit Union Administration to urge withdrawal of its proposal to allow tax-subsidized credit unions to issue alternative capital. ICBA's letter stated that the
NCUA 1) lacks the regulatory authority to allow credit unions to issue debt that acts as risk-based capital; 2)  the proposal would lead to increased borrowing and leverage on credit union balance sheets, posing excessive risks to the financial system; 3)  allowing credit unions to issue new forms of capital instruments is inconsistent with their cooperative structure and justifies an end to their tax exemption; 4)  the plan would put taxpayers at risk by primarily benefiting and inciting risky behavior at a handful of large credit unions, and 5)  supplemental capital instruments would not provide full loss-absorbing capacity if they mature during an economic downturn.

Other Federal Updates:
  • Federal Reserve Bank of Boston President Eric Rosengren warned that GOP plans to overhaul government-sponsored enterprises Fannie Mae and Freddie Mac could wrench the multi-family commercial real estate market. 
  • The Retail Industry Leaders Association has escalated the fight over debit card swipe fees, launching a digital ad campaign urging lawmakers to preserve the existing caps.  The ad calls for maintaining fee limits enacted in the Durbin Amendment under Dodd-Frank. The Financial CHOICE Act approved by the House Financial Services Committee last week would repeal those caps.
  • Former Comptroller of the Currency Curry departed with a major piece of unfinished business: a plan to offer national bank charters to financial technology firmshe OCC is still reviewing comments on its March  paper  about chartered fintech firm applications, with no update on a charter timeline.  The fintech charter was a key initiative for Curry, who was replaced on an interim basis by Keith Noreika on May 5.
  • The Financial Stability Oversight Council, chaired by Treasury Secretary Mnuchin, held a closed-door meeting and then posted a brief statement saying in part it had "discussed efforts to assess the efficacy of the Volcker Rule."


IBANYS CFO/Senior Management Conference: 
Strategic Insights, Key Updates
In 2017, community banks' CFOs, controllers, treasurers and cashiers face bigger challenges than ever before as banks'  financial strategies continue to  evolve.  Whether growing your loan  portfolio or finding new fee income, the challenge  to create acceptable ROA and ROE performance is as diffi cult as we have seen for nearly 20 years. IBANYS'  2017 CFO & Sr. Management Conference (June 7-9 at
West Point, N.Y.) will focus on a number of strategic insights and provide important updates necessary to help senior management lead and guide New York's community banks toward a profitable and successful future.
Presentations Will Address:
  • State and national economic trends
  • Tax and accounting principles 
  • Interest rate risk 
  • Capital planning 
  • CECL 
  • Other timely subjects identified by IBANYS' CFO Peer Group. 
Who Should attend?
Community bank CEOs, COOs, CFOs, Presidents, EVPs, Senior Managers, controllers, ALCO teams, cashiers and directors.  NOTE:  Attendees can earn up to 10 CPE Credit Hours (1.0 in taxation).

CLICK HERE to register/review program, and 
HERE for sponsorship information.

Upcoming Webinars & Seminars
board conference
Promontory Financial Presents "Cash Sweep" & CDARS
-- May 15, 2017
Promontory Interfinancial Network is offering a free webinar May 15 to demonstrate how banks can use its services, ICS and CDARS, to manage their balance sheets efficiently, attract valuable customers, free-up collateral and improve asset liquidity.  Do you have the tools necessary to manage your balance sheet efficiently, attract valuable customers, free up collateral, and improve asset liquidity-all while providing your customers the protection and service they expect?  Join Promontory Interfinancial Network-a trusted partner chosen by more than 3,000 financial institutions for this free webinar to learn how Cash Sweep(R) and CDARS (R) can help your bank with tools to meet new challenges.  Click here to register.

CSI Resources' Quarterly Compliance Update Webinar: 
-- May 18, 2017
1,689 pages. That's how enormous the Consumer Financial Protection Bureau's (CFPB) Prepaid Final Rule is. Join CSI Resources for their live Quarterly Compliance Webinar on Thursday, May 18. Keith Monson, CSI's Chief Risk Officer, will answer your questions to help you prepare.  In a nutshell, the rule adds significant compliance requirements to prepaid products pursuant to the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z). However, this rule could have lasting effects on all financial institutions, even those that do not offer prepaid products. Is your financial institution ready to play by the Rule?  Webinar topics include:
  • An executive breakdown of the CFPB's Prepaid Final Rule
  • Next steps to ensure your financial institution's compliance with the rule
  • The latest regulatory updates and changes from Washington
Click here to register.  Questions? Email CSI's  Pam Farnsworth: 

CSI & CliftonLarsonAllen Present "The Anatomy of Successful Bank Mergers & Acquisitions"
 -- Thursday, May 25, 2017
Mergers and acquisitions are complex and require precision. But with the right approach, banks can streamline the process and accelerate their strategic objectives. Every M&A deal is different, but each one shares consistent parts that must be addressed consistently. 
Join CSI and CliftonLarsonAllen for an educational webinar on May 25, at 2PM CT, for the opportunity to:

"Still In Vogue: 
Old Investment Strategies Are Viable Today"
By Jim Reber,  President/CEO
ICBA Securities
"This generation of investment portfolio managers may be forced to contend with a host of issues that hadn't need tackling for more than a decade. You may have heard:
  • Higher rates will create unrealized losses in your investment portfolio;
  • Disintermediation by your depositors will create funding challenges;
  • Bonds with embedded options will extend as they become out-of-the-money; and
  • Management of income through the realization of losses will demand some thought.
The underlying presumption in all of this is that interest rates are on the way up. . . the salient point for community bank portfolio managers is that some fundamental strategies utilized in the last ten years are still effective right now. . ." 
To read the full column, click here.

Mortgage Volume Is Up
Total mortgage application volume increased 2.4% on a seasonally adjusted basis last week from the previous week. Mortgage applications to purchase a home gained 2% for the week and are 6% higher than a year ago.Volume is still nearly 14% below a year-ago due to weaker refinancing, according to the Mortgage Bankers Association. Mortgage applications to refinance a home loan rose 3% for the week but are still 32% below last year, when interest rates were lower. The average contract interest rate for 30-year fixed rate mortgages with conforming loan balances of $424,100 or less remained unchanged at 4.23%, with points decreasing to 0.31 from 0.32, including the origination fee, for 80% loan-to-value ratio loans.

Job Openings Update
The Bureau of Labor Statistics announced monthly jobs openings were little changed in March from February. The gauge of the economy is closely is watched by Fed Chair  Yellen.  The number of openings was at 5.7 million on the last business day of the month.  U.S. job openings had previously risen to a seven-month high in February as the pace of hiring slipped, increasing 118,000 spots to a seasonally adjusted 5.7 million.  For the month of March, the Labor Department reported hires and separations were also little changed at 5.3 million and 5.1 million, respectively.

Have You Contributed To NYSIBPAC?
This year brings a challenging legislative session, with new chairmen of both the State Senate and State Assembly Banks Committees. Many of our competitors within the financial services industry operate very well-funded political action committees, and we need your support to ensure community banks remain an important part of the political process and debate. We have placed an updated 2017 NYSIBPAC contribution form in the column along the left border of this newsletter.  Can we count on your support?


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:

We are pleased to inform HR & Benefits Representatives of IBANYS member banks about a new offer available to their banks.  Offered through IBANYS' partner at My Wellness Resource is a unique program providing a $500 rebate on any new Fiat, Chrysler, Dodge, Jeep, Ram or Hyundai vehicle. Those firms comprise approximately 19% of all car and truck sales in the US market.  The rebate is independent of, and may be combined with, any other offer available to your employees, so it's a true cash rebate that is not available through dealerships. Employees negotiate their best deal at the dealership of their choice including other rebates, cash back offers, etc., then apply for and receive this $500 rebate after their new car purchase or lease. The program may only be  offered though individual banks, not through IBANYS itself. Therefore, if it's something you think your bank and employees might be interested in, drop a line to us and we will forward it to our contact at My Wellness, Alan Justin, who will reach out to you with  the details.
We only ask that if you are not currently participating in the My Wellness Resource program, that you take a fair & objective look at the program!

Secure, Enhanced Internet Presence
The .bank program by fTLD operates trusted, verified, more secure and easily-identifiable internet locations for financial companies as well as for their customers. For more information, 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 Webinars: Designed 
For  New York Community Banks:
. . .Is YOUR Bank Participating? 
New York's community banks face an array of challenges -- and, opportunities! Bank officers, board members and employees need to stay fully informed and up-to-date. . . on their responsibilities -- and, their potential liabilities. Community bankers need the proper information and tools to effectively do so, and to execute their business and strategic plan to prepare for the future.  Here's one important, convenient way to do this:  IBANYS' 2017 webinars. These presentations are designed to meet the needs of New York community banks. The programs are both effective and cost-effective. . . and participating couldn't be easier! Community bankers can do so from their own offices. The number of participants has dramatically increased over the past few years. Is your bank among those who have benefited?  If not, find out why so many of  your industry and association peers are taking advantage of these webinars. R eview upcoming programs link below:

. . .Luse Gorman
Luse Gorman  is one of the leading financial services law firms in the United States. Clients are primarily but not eclusively community banks and savings banks with assets ranging from $25 million to $25 billion. The firm specializes in specific practice areas, with an emphasis on capital raising transactions, mergers and acquisitions, SEC representation and executive compensation. This enables the firm to provide community bank clients with exceptional service commensurate with their financial resources and needs. Specialization areas include:


. . .That the U.S. Committee on Financial Services was once known as the Committee on Banking and Currency, created in December 1865 to take over responsibilities previously handled by the Ways and Means Committee. Five New Yorkers have served as Committee Chairman:

  • Theodore Pomeroy (1865-69)
  • Samuel Cox (1875-77)
  • Henry Bacon (1891-93)
  • Edward Vreeland (1909-11)
  • Edmund Platt (1919-20) 


 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