. . . IN THIS WEEK'S ISSUE:
  • IBANYS' CFO/Senior Management Conference Is NEXT WEEK! 
  • The Latest Updates From Albany & Washington
  • Action Alert: Support CLEAR Regulatory Relief Act
  • Updates On Economic, Banking & Business Trends Impacting Community Banks 
  • Community Banking Service Awards -- Nominations Close THIS FRIDAY. June 2
  • IBANYS Annual Convention: "The Power Of Community Banking" 

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 31, 2017



 
IBANYS' CFO/Senior Management Conference Is NEXT WEEK at West Point. . .
Are YOU Registered? 
Senior management teams of New York community banks are facing greater challenges than ever before. From  growing loan  portfolio, to finding new fee income, the challenge of  creating acceptable ROA  and ROE performance is at least as diffi cult as it has been in two decades.  IBANYS' CFO & Senior Management Conference will be held at the historic Thayer Hotel at West Point from June 7-9, 2017.  The agenda is packed with speakers who will focus on strategic insights and provide timely updates to help community banks achieve a profitable and successful future. It will be an informative and enjoyable few days -- and provide opportunities for networking and to earn CPE credits for continuing education requirements.

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: 
Our room block at the Thayer Hotel is sold out. We do have other hotel choices available:
  • The Holiday Inn Express (845) 446-4277;
  • The Hampton Inn (845) 782-9600; 
  • The Spring Hill Suites (845)-896-8100. 
If you have any questions or need additional information, please do not hesitate to contact Linda Gregware, Director of Administration and Membership Services: (518)436.4646, email Lindag@ibanys.net.



It's Time To Plan To Attend
IBANYS' ANNUAL CONVENTION:
   

"THE POWER OF COMMUNITY BANKING"
SEPTEMBER 25-27, NIAGARA FALLS, NEW YORK
Our annual convention will once again bring together the leaders of New York's community banking industry, senior executives and senior managers of our member banks, associate members, preferred providers and a truly outstanding array of speakers. Watch this space for details on the program and sponsorship opportunities. Niagara Falls provides a truly spectacular venue for our conference. 
Click here to learn more about the many activities available!   

2017 Annual Convention Trivia: Did you know that b efore  Europeans  entered the area, it was dominated by the  Neutral Nation  of Native Americans -- an Iroquoian-speaking North American indigenous people who lived near the northern shores of Lake Ontario and Lake Erie on the west side of the Niagara River? European migration into the area began in the 17th century. The first recorded European to visit the area was  Frenchman  Robert de la Salle , accompanied by  Belgian  priest  Louis Hennepin , who was the first known European to see the falls. 

  . .. .  
ALBANY UPDATE

2017 Legislative Session Entering 
Home Stretch
There are just 11 scheduled business days remaining in the 2017 NYS Legislative Session. The Legislature is scheduled to adjourn for the year June 21. The Legislature remains out this week on its Memorial Day holiday recess.

DiNapoli Warns: Tough Fiscal Decisions Ahead
State Comptroller Thomas DiNapoli issued a report that warned with more than $10.5 billion in bonded indebtedness approved with the most recent state budget -- and with tax revenue projections trending downward -- tough fiscal decisions could lie ahead for the State.  The Comptroller also took aim at the way the 2017-18 state budget was finalized a week after the April 1 deadline.  "Billions of dollars in spending lacks key details that would better inform the public about how their tax dollars are being spent," DiNapoli said. He also repeated the fear, voiced by Gov. Cuomo and others, that the White House and the Republican-controlled Congress could enact steep cuts to programs like Medicaid, which would harm the state's budget.

IBANYS: Don't Let Credit Unions 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. This 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). Senate Banks Chairman Hamilton is a member. 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 memo. 


WASHINGTON UPDATE

Contact Congress: Support CLEAR ACT
IBANYS joins ICBA in urging community banks to contact their members of Congress to urge them to co-sponsor the CLEAR Relief Act (H.R. 2133, S. 1002) by Rep. Blaine Luetkemeyer (R-MO), and alert the Senate (S. 1002), by Sens. Jerry Moran (R-KS) and Jon Tester (D-MT). We need to take action to advocate for  congressional support for this comprehensive community bank regulatory relief legislation. The bills include The bills include relief from, among other things, mortgage rules, the Volcker rule, the TILA-RESPA Integrated Disclosure rule, Sarbanes-Oxley requirements.  New York community bankers: Use ICBA's "Be Heard" Grassroots site (icba.org) to contact your Representatives.  

Time To Raise The Fed's Small Bank 
Holding  Company Threshold
ICBA is supporting legislation (S.1284,  the Community Bank Relief Act) to raise the consolidated asset threshold under the Federal Reserve's Small Bank Holding Company Policy Statement, from $1 billion to $5 billion. It would allow more holding companies to raise capital, thus implementing a key provision of ICBA's "Plan for Prosperity" plan. The threshold was raised from $500 million to $1 billion in 2014, but ICBA has stated that it should be significantly higher to recognize the larger average asset size of today's community banks. A companion bill in the House would raise the threshold to $10 billion, the same amount proposed in the House version of the CLEAR Relief Act. 

Financial CHOICE Act To House 
Floor  Next Week?
The House is expected to take up the Financial CHOICE Act (H.R. 10) -- Financial Services Chairman Hensarling's regulatory relief bill -- as soon as next week when Congress returns from recess. Amendments are due thus Friday. ICBA (and IBANYS) supports the bill, which includes a number of provisions in ICBA's "Plan for Prosperity" regulatory relief platform. These include reforms to regulations on mortgage lending, the call report and data collection. However, the provision to repeal the Durbin Amendment (price controls on debit card interchange), which ICBA and IBANYS supported, 
is being removed from the bill.

ICBA Weighs In On CFPP's Pending 
HMDA Changes
lCBA wrote to the Consumer Financial Protection Bureau to urge that it mitigate the "harmful impact" of upcoming changes to Home Mortgage Disclosure Act (HMDA) requirements. The letter warned that, without changes, the sharply increased data-collection and reporting- mandates set to begin January 1, 2018 would drive many community banks out of residential mortgage market and reduce consumer choice. ICBA urged the CFPB to make optional the reporting of new data, significantly increase reporting thresholds to exempt more small-volume lenders, exclude reporting for commercial loans, and establish reasonable data resubmission guidelines. ICBA also noted CFPB has not addressed concerns that the data will allow re-identification of borrowers, compromising their privacy and exposing them to risk of embarrassment and fraud.


Community Bank Service Awards Nominations: Deadline Is This Friday, June 2
ICBA is seeking nominations for the 2017 ICBA National Community Bank Service Awards. They recognize all types of community service efforts from community development, to financial literacy, to everything in between. IBANYS encourages member banks to nominate a New York community bank. Banks are allowed to nominate themselves. The nomination period is open now and, as I mentioned, self-nominations are accepted. The nomination period closes Friday, June 2, 2017.  

Award criteria categories include:
  • Impact and program success
  • Creativity and innovation
  • Employee involvement
  • Time donated.

Treasury: Credit Union Tax Exemption To 
Cost $35.3 Billion!
A May 24 American Banker article ("Trump Budget Gives Small Banks Ammo Against Credit Union Exemption") notes the U.S. Treasury Department estimates that the federal government will forego $35.3 billion over the next decade due to the credit union income tax exemption. That estimate is 32% higher than last year's forecast of $26.7 billion. ICBA's senior regulatory counsel Chris Cole was quoted: "It's very interesting. It's up about a third in just a year. It shows just how big the exemption is getting...I think it will cause some people to ask if we can continue to afford this."

Supreme Court Addresses "Patent Trolls"
In a unanimous ruling last week, the U.S. Supreme Court took a big step to address the issue of so-called "patent trolls". The Court ruled that patent cases must be tried where the defendants are incorporated, overturning a 27-year-old Federal Circuit decision to allow plaintiffs to file patent lawsuits practically anywhere in the United States. Before the ruling, patent cases could be filed in plaintiff-friendly courts.  The ruling should result in an end of the practice of patent trolls "shopping" for plaintiff-friendly district courts. In 2015 testimony before Congress, ICBA urged lawmakers to curb costly abuse by "patent trolls" and noted the economic costs that threaten legitimate businesses with patent claims of dubious quality to extort settlements. To read press coverage of the ruling: Click HERE.

Home Sales Down -- Nationally, 
And In Northeast
The spring housing market continues to be plagued by a lack of homes for sale. There were 1.3% fewer signed contracts to buy existing homes in April compared to March, according to the National Association of Realtors' monthly index. March's reading was also revised down. The index is 3.3% lower than April of 2016. Regionally, pending home sales in the Northeast decreased 1.7% for the month and are 0.6 percent below a year ago.  Meanwhile,  mortgage applications fell 3.4% last week from the previous week, and the  easonally adjusted index from the Mortgage Bankers Association now stands 14% lower than one year ago. Applications to refinance dropped 6% for the week and are 31% lower than the same week one year ago. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less remained at 4.17%, with points decreasing to 0.32 from 0.39, including the origination fee, for 80 percent loan-to-value ratio loans.

Millennials & Home Ownership
An overwhelming majority (80%) of millennials report that they would like to buy a home, and a majority even say that it's part of their five-year plan. Yet 68%  have less than $1,000 saved, and 44% have saved nothing at all, according to new data from Apartment List. According to their findings, "high levels of student debt and stagnant career opportunities have long kept millennials sidelined from the real estate market." 

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!  
_____________________________

   
IBANYS Webinars  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


. . .M&T (Correspondent Banking)
M&T provides Correspondent Banking Services for New York community banks, including: 
  • Public Fund Collateral Custody 
  • Check Image Clearing 
  • Fed Funds 
  • International Trade Services 
  • Holding Company Facilities 
  • Letters of Credit 
  • Foreign Exchange Services 
  • Bank Insurance Services 
  • Loan Participations 
  • Domestic and International Funds Transfers
  • Pension Services 
  • Wholesale Mortgage Products 
  • Investment Management Services
For additional information, please contact 
Steven Schumer, V.P., Financial Institutions Div. (716) 848-7332,  sschumer@mtb.com
OR David Gordon V.P., Financial Institutions Div.
(516) 391-7629,  dgordon1@mtb.com. 

 
. . . That as of April 2016, m illennials surpassed Baby Boomers as the nation's largest living generation? According to  population estimates  by the U.S. Census Bureau, millennials (ages 18-34 in 2015) numbered 75.4 million, compared to 74.9 million Baby Boomers (ages 51-69). Generation X (ages 35-50 in 2015) was projected to pass the Boomers in population by 2028.

 

 

 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