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

November 2, 2016
IBANYS Member Banks:
Watch The Mail for  Your  2016-17  Renewal Letter & Dues Invoice For  Fiscal Year 2016-17. . .

Please Also Note: 
 IBANYS accepts referrals for banks that are not currently members, and for companies that not yet associate members.
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"New Leaders In Banking" Award 
& Conference: December 14 
This is your chance to nominate someone at your bank for a "New Leaders in Banking" award.  The Independent Bankers Association of New York State (IBANYS) and Banking New York Magazine want your bank to help us identify future leaders of our industry. Not just f inancial professionals traditionally recognized for generating significant revenue -- but those who think beyond the bottom line "go the extra mile". 
  • Are you a banking professional who wants to recognize a peer? 
  • Are you a manager who wants to congratulate an employee for always going the extra mile? 
Winners will be honored during the Banking New York Conference on December 14th in Albany, New York. Please join us and enjoy a day recognizing New Leaders in Banking, networking with peers, learning about new products and services to strengthen your institution, and hearing from industry thought leaders during numerous motivating and educational sessions.  How can you nominate someone?  It's easy.

Visit bankingnyconference.com  and click on the "New Leaders Nominations" tab on top.
Questions? E-mail  thewarrengroup.com, or call  
(617) 896-5373.

Support ICBA'S Credit Union 
Litigation Fund 
As you no doubt know,  ICBA has filed a lawsuit gainst the National Credit Union Administration (NCUA) for an unlawful rulemaking allowing tax-exempt credit unions to exceed commercial lending limits set by Congress.  The NCUA rule would dramatically expand lending loopholes for credit unions by allowing them to exclude purchased nonmember commercial loans and participations from the calculation of their aggregate member business loans.  ICBA has received tremendous support from community bankers and state trade associations alike. Many have asked how they can support this effort.

Click here for details on how you can participate, contribute and support this effort! Please contact me ( Johnw@ibanys.net) if you have any questions or require additional information. Thanks for your interest and support.

New York Community Banks: 
It's Benefits Season! 
It's approaching the time to sign up for health benefits for 2017. We suggest you take a look at our healthcare partner, My Wellness Resource" as an addition to your existing benefit package. The  Teledoc  program is an exciting new way to provide value to your institution and employees. It provides 24/7/365 access to a doctor through the convenience of phone or video consults. It is an affordable option for quality medical care.  Click here to read how high deductibles can lead to health care avoidance. . .  and here to learn how this program can help you in planning your health care benefits package. Community banks can take advantage of a low-cost, non-traditional program to help save time and money, and offer employees on demand health care. It's an exciting new way for community banks to provide additional health care benefits options, reduce cost and retain employees -- designed to improve productivity, decrease absenteeism and boost morale without straining your bottom line.   C ontact Alan Justin, Managing Partner at (716) 907-5500 or call the IBANYS office at (518) 436-4646.  For more details on the benefits of the My Wellness Resource Card, visit: 
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IBANYS Members: 
Are You Serving On Our Committees?
IBANYS relies on our member banks to play a pivotal role in our policy formulation, operations and programming. We need YOUR bank represented on our committees, to make sure we are addressing the issues, programs, products and services important to your institution, and our industry. Why not sign up for one of the following Committees or Peer Groups?
  • Government Relations Committee 
  • CFO Peer Group
  • Compliance Peer Group
  • Innovation Committee
E-mail IBANYS' Director of Operations Linda Gregware (Linda@ibanys.net) for details/to sign up.
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Government Relations


ALBANY UPDATE

IBANYS Finalizing Comments 
On DFS  Proposals  
The State Department of Financial Services has announced two new proposed regulations (on cybersecurity and on vacant or abandoned "zombie" properties) and a new guidance (on incentive compensation) that could have a significant impact on community banks, and establish a precedent nationally and for other states. IBANYS is preparing to meet with DFS, and is in the process of finalizing our comment letters.  IBANYS will hold a conference call with members of the Government Relations Committee on Friday. Thanks to all the member banks who have participated, provided input and shared their concerns during this process.

 

WASHINGTON UPDATE

What Are YOUR Top 2017 
Regulatory Relief Priorities
In preparing for the upcoming 2017 congressional session in January, ICBA is asking for your input in updating the "Plan for Prosperity" community bank regulatory relief program. IBANYS has strongly supported the "PFP" and has advocated for its provisions in meetings with members of our new York Congressional Delegation in Washington, D.C. 

Click here to review the 2016 PFP program, and then Click here to complete a survey to share your bank's top priorities and concerns.  Thanks for your participation! P lease take a moment to review both documents and provide your feedback on what you would like to see prioritized in 2017. 
Return your survey to: 
Alan.Keller@icba.org, FAX 202.659.3604.


Ask Your Congressional Reps To 
Co-Sponsor H.R. 6100
ICBA and IBANYS urge community bankers to contact their local Members of Congress and ask them to co-sponsor legislation to block a alert proposed tax increase for family businesses, impacting community banks. H.R. 6100 (Davidson, R-OH) would block a Treasury proposal to effectively end estate-planning techniques used to transfer community banks and other family owned businesses from generation-to-generation. The proposed rule under Section 2704 of the Tax Code would disallow valuation discounts for minority stakes or stakes that aren't marketable. The proposal would increase the tax on many estates by more than 30% -- resulting in forced sales and bank consolidation. Please act now: Visit www.congressweb.com/icba/44.

If Democrats Take Control Of U.S. Senate. . .
With the battle for control of the U.S. Senate a close contest on Election day next Tuesday, there could be big changes in store in 2017. If Democrats win the majority, Sen. Sherrod Brown (D-OH) would become Chairman of the Senate Banking Committee. The American Banker reports he would likely "focus on toughening rules on the biggest banks, conducting oversight of scandals like the one at Wells Fargo and granting regulatory relief to smaller institutions." One community banker from Ohio said Sen. Brown "understands the need for tiered regulation."  Of course, if the Democrats do gain control, Sen. Chuck Schumer would almost certainly become the first U.S. Senate Majority Leader ever from New York State.  Sen. Schumer may face criticism from the left wing of his party for a tax overhaul plan he may push for next year. Critics are most skeptical of lowering the corporate tax rate, which one expert said would be a "giveaway" to companies.

In other election-related news, in down-ballot races, candidates from both parties are dealing with attack ads that focus on their connections to Wall Street. An analysis showed that ads for 34 races in 25 states have tried to paint candidates as pro-Wall Street. 

INDUSTRY INSIGHTS

PRESS RELEASE
INDEPENDENT BANKERS ASSOCIATION OF 
NEW YORK STATE (IBANYS) NAMES
EMPIRE NATIONAL BANK'S CEO CHAIRMAN
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Douglas C. Manditch to Serve One-Year Term Starting November 1, 2016

A recent press release noted the election of Empire National Bank's Chairman and CEO Douglas C. Manditch as Chairman of the Independent Bankers Association of New York State for a one-year term effective November 1, 2016.  "We are delighted Doug Manditch will serve as Chairman of the Independent Bankers Association of New York State," said John Witkowski, President and CEO of the Association.  "IBANYS was formed in 1974 to represent the interests of local community banks throughout our state.  More than four decades later, our purpose is unchanged, and under Doug's leadership, that mission will continue. Doug understands that local independent banks play a key role in driving the state and local economies and are a vital component in their social fabric.  They are the backbone of our local communities."
  Mr. Manditich said it's an honor to be elected to this position.  "As someone who has devoted his entire banking career --- a span of over 50 years --- to community banking, I view this appointment as an opportunity to give back to an industry that impacts the financial wellbeing of so many fellow New Yorkers."  Click here  for full press release.
 
FDIC Community Banking Advisory 
Committee Meeting Tomorrow
The FDIC will hold a meeting of the Advisory Committee on Community Banking tomorrow, Thursday, November 3. It will provide updates on the FDIC's Community Banking Initiative, efforts to support de novo formations and to develop the next generation of bankers, and FDIC assessment rates. There will also be presentations on consumer compliance policy issues and risk management supervision policy issues.  The meeting will be held from 9 a.m. to 3 p.m. in the FDIC's main building in Washington, D.C. and will be webcast  live . The agenda and a link to the webcast are available at  FDIC's Advisory Committee on Community Banking Page .Visit www.FDIC.gov and see the top of the home page for details.  The Advisory Committee on Community Banking provides input to the FDIC on a wide variety of topics, including current examination policies and procedures, credit and lending practices, deposit insurance assessments, insurance coverage, and regulatory compliance.

Latest From Freddie Mac
Freddie Mac reported a $2.3 billion profit for the third quarter this year, which it will send to the U.S. Treasury at the end of December. At this point in 2015, Freddie reported a loss of $475 million. Freddie Mac CEO Donald Layton said the GSE  is working with the Federal Housing Finance Agency to make permanent programs aimed at helping borrowers avoid foreclosure. Two such programs (HAMP and HARP) created in the aftermath of the 2008 financial crisis - HAMP and HARP - expire next year. 

Banks No Longer Rule Mortgage Market
Banks accounted for less than half of the mortgage dollars extended to borrowers during the third quarter-the first quarter banks, credit unions and other depository institutions have fallen below that threshold in more than 30 years, according to Inside Mortgage Finance.

Economic Items In The News:
  • The Mortgage Bankers Association reported that total mortgage application volume fell 1.2% last week from the previous week. Volume is down nearly 11% in the past four weeks, as rates climbed. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since June, 2016, 3.75%, from 3.71%, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80% loan-to-value ratio loans. Mortgage applications to refinance were down 2% for the week, seasonally adjusted. Refinance activity is still 23% higher than one year ago, when mortgage rates were higher. Loan applications to purchase a home fell 0.4% for the week. Purchase applications are now 9% higher than one year ago. 
  • The Commerce Department said on Monday that consumer spending, which accounts for about 70% of U.S. economic activity, increased 0.5% after a downwardly revised 0.1 percent drop in August. Last month's increase in consumer spending offered a fairly strong handoff from the July-September period to the current quarter.

MEMBER BENEFITS 

IBANYS initiatives can provide value and bottom line benefits to New York community banks. Take a moment to review them.  We hope you take full advantage of these exciting opportunities.

 .BANK Toolkit & Digital Campaign

IBANYS encourages New York community banks to take a look at  a digital campaign that fTLD has put together to raise the visibility of .BANK  in the marketplace.  ICBA asked us to pass along this opportunity for banks to join in with ICBA, ABA and the Financial Services Roundtable to promote .BANK. To view the campaign, view the toolkit and read nine different ads available for use, click on the link below, or cut and paste it into your browser.

Excelsior Growth Fund (EGF)
 is
 a nonprofit Community Development Financial Institution formed by New York Business Development Corporation (NYBDC). EGF is endorsed by IBANYS as the exclusive online lending
partner for association members.  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.  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.  Additional details on the EGF SmartLoan, including eligibility criteria, are available at:

For details, or to make a referral, contact Bryan Doxford, Chief Lending Officer at Excelsior Growth Fund:  bryan.doxford@excelsiorgrowthfund.org or  (212) 430-4512.


 

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! 

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IBANYS Webinars For 
New York Community Banks 
New York's community banks face a wide range of challenges. Officers, board members and employees need to understand their responsibilities -- and, potential liabilities -- are not about to diminish. They require the information and tools required to meet their responsibilities, and properly prepare the bank for the future.  One way to assure this is to participate in  IBANYS' webinars -- tailored to the needs of New York community banks. The programs are both effective and cost-effective, and couldn't be more convenient! Community banks' officers, directors and employees participate directly from their offices. Over the past two years, the number of bankers participating in IBANYS webinars has risen dramatically increased.  Find out why. Join  your industry and association peers and take full advantage of these timely webinars.  Review  our upcoming programs by clicking the link below:
https://financialedinc.com/a/ibanys/category/live


. . .Stratis Technologies
 
Stratis Technologies helps financial institutions tailor their deposit products to optimize customer satisfaction and product profitability. Areas of expertise include demand deposit configuration, start fresh banking - a proprietary "second chance" program - overdraft protection program optimization, and customer onboarding/ communication strategies. They specialize in  Customer Relationship Management; New Account Verification Service; Overdraft Privilege Service.  For details, call  800-581-1511, or e-mail 
info@stratistech.com. . .Or,contact Mark Shuff : (800) 581-1511, mark@stratistech.com or v isit the website: www.stratistech.com.

 

. . .The  FDIC was created by the  Banking Act of 1933,  signed by President Franklin D. Roosevelt on June 16 of that year. It was established after the  Great Depression  to restore trust in the American banking system.  The insurance limit was initially $2,500 per ownership category. Today,  the FDIC insures deposits in member banks up to $250,000 per ownership category. 


 


 
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