. . . IN THIS WEEK'S ISSUE:
  • News From Albany & Washington
  • Timely Updates On Issues Impacting Community Banks 
  • Economic, Banking & Business Trends
  • Reminders: Key IBANYS Meeting On Tap
  • Welcome To Our Two Newest IBANYS Associate Members


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

May 17, 2017

 
We are pleased to welcome two new associate members into our IBANYS family.
  • Approval Payment Solutions, offering a complete menu of electronic payment solutions through dynamic Agent Bank Partnerships, and a wide array of digital marketing products. Contact Agent Bank Director Jason Dates at (888) 311-7248, ext. 151.
  • Lee & Mason Financial Services, Inc.,
    a full-service provider of products and services to protect collateralized assets of financial institutions. Contact SVP Charles Pritchard at (518) 863-4311.

Thanks for your confidence. We look forward to working together!

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New York Community Banks:
Have You Signed Up yet?



IBANYS CFO/Senior Management Conference: 
Strategic Insights, Key Updates

Community bank CFOs, controllers, treasurers and cashiers face bigger challenges than ever before as banks'  financial strategies  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 20years.  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 to help community bank senior management teams lead and guide their institutions 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 members of the board of directors.  NOTE: Attendees can earn up to 10 CPE Credit Hours (1.0 in taxation).

CLICK HERE to register/for  UPDATED program  
CLICK HERE for  UPDATED sponsorship details

Special thanks to these firms that have already signed up to sponsor: 
  • Federal Home Loan Bank of New York
  • Wolf & Company, P.C.
  • New York Business Development Corporation (NYBDC)
  • SHAZAM
  • Pentegra Retirement Services
  • Sandler  O'Neill + Partners, L.P.
  • Bankers Healthcare Group
Please note there is a Room Block Group Rate: Call 845-446-4731 and refer to IBANYS.
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PLAN TO ATTEND
IBANYS' ANNUAL CONVENTION:
"THE POWER OF COMMUNITY BANKING"
SEPTEMBER 25-27, NIAGARA FALLS, NEW YORK
. . .WATCH FOR DETAILS COMING SOON
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  . .. .  
ALBANY UPDATE

Credit Unions Push To Join State BDD 
(Muni Deposits) Program
IBANYS is closely monitoring a Department of Financial Services bill (A.6946, Zebrowski/ S.5308, Hamilton) sponsored by the two legislative Banks Committee Chairs.  It would extend the State's Banking Development Districts Program to credit unions. The BDD  program provides real property tax benefits and state funds to participating banks that establish brick-and- mortar branches in underserved areas. Tax- exempt credit unions have for years sought entry into the municipal deposits business through the BDD, the State Community Bank Deposits Program and general permission to enter the business across the board. This year  marks is the first time DFS (and, the Governor) are on board. The idea may also have support in the Senate's Independent Democratic Conference (IDC), to which Banks Chairman Hamilton belongs. That could prove politically significant, as the IDC is the Senate GOP's partner in the majority coalition.  IBANYS is reminding legislators that tax-paying community banks provide a disproportionately high percentage of small business and agricultural loans in New York State vis-a-vis the amount of deposits they hold, and that the loss of municipal deposits would have a negative impact on business and balance sheets. IBANYS is considering a number of options. Meanwhile, we have  prepared a memorandum in opposition to the current legislation.   Click here to read the full text of the memo. 

Other News From Albany:
  • S.5920 (Savino)/A.7705 (Rodriguez), introduced last week, would significantly expand the services available to check cashers, including taking deposits and lending up to $25,000.
  • In remarks delivered last week, NYS DFS Superintendent Vullo said she believes DFS has the power to ban "bad actors" from the industries it oversees, despite 1) the absence of any express legal power to do so, and 2) the failure earlier this year of an effort that would have expressly extended the power to DFS. Ms. Vullo suggested the power to ban bad actors from the banking and insurance industries is inherent to the DFS's mission to protect markets and consumers from fraud, and equated it to similar powers exercised by the SEC and the Federal Reserve Bank.
  • A new poll by Baruch College and NY1 found 56% of New York City voters supported a 2020 presidential bid by Governor Cuomo. That marks a significant shift from December, when only 38% thought he should run and 42% did not. 
     Only  29% said NYC Mayor de Blasio should to seek the post, while just 24% wanted Sen. Gillibrand to run. 

WASHINGTON UPDATE

ICBA To Trump Administration: 
Review Credit Union Tax Exemption
ICBA submitted a white paper, "Community Bank Regulatory Relief: A Roadmap to Economic Growth and Prosperity", to Treasury that outlines proposals to bolster the economy by modernizing community banking regulations. It  notes community banks operate in a "suffocating regulatory environment" that prevents them from driving economic growth.  "ICBA urges the Department of the Treasury and Congress to champion and enact meaningful regulatory relief that will allow community banks to do what they do best - serve the unique borrowing needs of their customers." Proposals include: 
  • Strengthening community bank mortgage lending by reforming the "qualified mortgage" rule, unnecessary escrow requirements, and costly appraisal and application mandates.
  • Policymakers should ease commercial lending rules, such as data-collection and rural-credit mandates, to mitigate the negative impact on small businesses and farms.
  • Reforming Basel III capital rules and refocusing them on the largest financial firms.
  • Congress should address growth-inhibiting burdens in the Consumer Financial Protection Bureau, Bank Secrecy Act, quarterly call report and examination environment.
  • The Trump administration should review the credit union industry's tax and regulatory exemptions to promote a level playing field in the financial services industry.
Senate Unlikely To Address Dodd Frank
The House is preparing to consider H.R. 10, the Financial CHOICE Act (House Financial Services Chairman Hensarling's Dodd-Frank replacement plan. However,  Senate Majority Leader McConnell said Tuesday he doubts the Senate will act on a comprehensive repeal of Dodd-Frank, citing objections from Democrats.  Senate Banking Chairman Crapo (R-ID) agreed, adding the Committee will instead focus on stimulating economic growth. Crapo did say the Senate could work on non-controversial statutory changes. "As you move through the other parts of Dodd-Frank, there are pieces like community banks and credit union issues where we have broad bipartisan agreement." However, the Committee's Ranking Democrat  Sherrod Brown (D-OH) responded:  "If this were really about community banks, we might have come to an agreement years ago...But Republicans are once again using them as leverage to help a rogue's gallery of special interests."

Three Key Nominations
President Trump  nominated  Kevin Hassett to be chairman of the Council of Economic Advisers, James Donovan as deputy secretary of the Treasury and Brian Quintenz to be a member of the Commodity Futures Trading Commission. All three positions require Senate confirmation.




Upcoming Webinars & Seminars
board conference
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:
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DFS Suit Challenges OCC's 
Fintech Charter Proposal
The State DFS filed a lawsuit last week in the U.S. District Court for the Southern District of New York challenging the federal initiative that could result in special-purpose bank charters for fintech companies. In March,  the OCC issued draft revisions to its licensing manual and how those standards might apply to applications by fintech companies. DFS  Superintendent Vullo asked a federal judge to block the OCC's effort, saying it "grossly exceeds the agency's statutory authority." She noted  Congress, in the National Bank Act, limited federally chartered banks to the "business of banking," which includes the taking of deposits--something fintech companies don't do.  "Accordingly, the Fintech Charter Decision does not concern the `business of banking' and is therefore beyond the OCC's jurisdiction to implement." The Conference of State Bank Supervisors has filed a similar suit. Vullo argued the OCC's charter initiative could hurt New York by giving unscrupulous financial firms "another way to skirt local oversight". She said the OCC effort would make a wide range of non-depository institutions (e.g., real estate lenders, mortgage servicers, sales and premium finance companies, prepaid card issuers, etc.) "purportedly immune" to state oversight by federal preemption, which would have "unavoidable and drastic consequences" for DFS. 

Latest On New Home Construction, 
Housing Starts
The U.S. Commerce Department reported construction of new homes fell for a second straight month in April, pushing activity to the lowest point in five months. H ousing starts fell 2.6% in April to a seasonally adjusted annual rate of 1.17 million units. That came on the heels of a 6.6%  decline in March, and left  home  building at its lowest point since last November. The Department also reported that multi-family housing starts fell 2.6% in April, but remained up 0.7% from one year earlier. Single family starts were up 0.4% from March. Building permits were down 2.5% from the previous month, but were up 5.7% from last year.  

. . .And Yet, There's This
U.S. homebuilders expect stronger sales ahead, but mortgage applications for newly built homes don't currently support that hope.  After slipping in April, homebuilder sentiment rose 2 points in May to the second-highest level since the recession. The National Association of Home Builders' monthly index found sentiment stands at 70.  Anything above 50 is considered positive sentiment. The index was at 58 in May 2016. On a three-month moving average, homebuilder sentiment in the Northeast rose 3 points, to 49.  Of the index's three components, "Sales Expectations Over The Next Six Months" saw the biggest gain, rising 4 points to 79. That is the highest level since June 2005. "Current Sales Conditions" also rose 2 points, to 76, but the components measuring "Buyer Traffic" fell 1 point, to 51. 

New York Fed: Manufacturing Down In State
The Federal Reserve Bank of New York reports manufacturing in New York state shrank for the first time in seven months in May as new orders fell and shipments grew more slowly.  The New York Fed's Empire State manufacturing index fell last month to minus 1, from 5.2 in April. (Any reading below zero signals contraction.)  The index measures sentiment in New York, but is followed by economists because it provides an early read on factory output nationwide. 

Cyber Security Tips Available
The NYS Office of Information Technology Services Enterprise Information Security Office (NYS ITS EISO) is pleased to announce that the most recent Cyber Security Tips Newsletter is now available. It explores ways to connect to the Internet and browse websites securely. The information provided in the Monthly Cyber Security Tips Newsletters is intended to increase the security awareness of an organization's end users and to help them behave in a more secure manner within their work environment. While some of the tips may relate to maintaining a home computer, the increased awareness is intended to help improve the organization's overall cyber security posture. End users should adhere to the direction provided by their organization's policies.The monthly newsletter, developed by the Multi-State Information Sharing and Analysis Center (MS-ISAC), is located on the ITS EISO website at:
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?

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.

. . .An IMPORTANT UPDATE: 
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  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 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:
https://financialedinc.com/a/ibanys/category/live


. . .SHAZAM
The SHAZAM network is a member-owned electronic funds transfer (EFT) network providing choice and flexibility to community financial institutions across the US since 1976. SHAZAM is a single source provider for the following services: debit card, core, fraud, ATM, marketing and more. To learn more visit SHAZAM.net and follow @SHAZAMNETWORK. For information, contact Senior Vice President  James Ghiglieri, Jr.  at (309) 678 9021,  jghiglieri@shazam.net. Or, visit the website at  www.shazam.net

 
. . .That 43 years ago, when IBANYS was formed in 1974: 
  • The inflation rate in the USA was 11.3%
  • The  Dow Jones Industrial Average closed the year at 616
  • The average cost of a new house $34,900 
  • The cost of a gallon of Gas was 55 cents 
  • The average cost of a new car was $3,750.00 
  • The average Income per year $13,900?
     

 

 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."

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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