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

October 5, 2016

IBANYS' Annual Convention ("Transformation, Innovation and Collaboration")  was held this week 
at the Turning Stone Resort in Verona, New York. Over  170 attendees participated, and 35 participating vendors had booths in our business show. The convention featured a comprehensive business program, unique networking and recreational opportunities and great camaraderie. We'll have speaker presentations on our web site very soon. Meanwhile, here are a few highlights and some photographs from the scene.

IBANYS' New Innovation Committee  met this afternoon to hear presentations by  new vendors with products and services that may not be mainstream community banking yet, but could be a viable option for community banks going forward.  The new products and services may help banks lower expenses, generate additional revenue and/or help promote bank collaboration to improve efficiency.  

PASSING OF THE CHAIRMAN'S GAVEL
IBANYS President & CEO John Witkowski (left) and Outgoing Chairman John Buhrmaster (right) present the Chairman's Gavel to Chairman-Elect Doug Manditch (center).

Congratulations To IBANYS' New Officers
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IBANYS membership has elected a slate of officers for Fiscal year 2016-17, which begins November 1. Doug Manditch (Empire National Bank) will serve as IBANYS Chairman,  Mike Briggs (USNY Bank) as Vice Chairman and Tom Amell (Pioneer Bank) as Treasurer/Secretary. IBANYS is in good hands! Special thanks to our outgoing Chairman John Buhrmaster (1st National Bank of Scotia) for his outstanding leadership this past year.

. . .And Directors 
BobFisher 
BillRyan null

IBANYS also re-elected four incumbent Directors to new three-year-terms on the IBANYS Board: Chris Dowd (Ballston Spa National Bank); Bob Fisher (Tioga State Bank); Bill Ryan (Cayuga Lake National Bank), Kathleen Whelehan (Upstate Bank). Congratulations to all, and to newly elected Director Anders Tomson (Chemung Canal Trust). Thanks these industry leaders for sharing their time and expertise!

MORE "SCENES FROM THE CONVENTION"
Ray O'Conor Kicked the Convention off with a stirring keynote address

Congratulations to Patrick Cullen, winner of the First IBANYS Texas Hold'em Tournament


Register For 
IBANYS' Regional 
Cybersecurity Conferences: Oct. 19 - 20
 
 CLICK HERE to register & View 
UPDATED PROGRAM

Regulators and bankers recognize the issue of cyber security as among the most important challenges community banks face. Your bank's officers, employees, directors - anyone responsible for/involved with your system security - must stay fully up-to-speed on these issues, which are evolving ever-more rapidly. Governor Cuomo and the NYS DFS have proposed a new regulation "to protect New York State from the ever-growing threat of cyber-attacks." It would require banks and other financial services institutions regulated by the DFS to: 
  • Establish a cybersecurity program; 
  • Adopt a written cybersecurity policy;
  • Designate a Chief Information Security Officer responsible for implementing, overseeing and enforcing its new program and policy
  • Have policies and procedures designed to ensure the security of information systems and nonpublic information accessible to, or held by, third-parties, along with a variety of other requirements to protect the confidentiality, integrity and availability of information systems. 
Register here for IBANYS' Regional Security Conferences Oct. 19  (Rochester  Marriott Airport) and Oct. 20  (Comfort Inn & Suites in Castletown, in the Capital District ). Speakers will address the very latest developments and trends impacting New York community banks. 
The program will focus on:
  • "Vulnerability & Penetration Testing: What You Need To Know" 
  • "Why The Board Can't be Bored With Cybersecurity",
  • "Cloud Computing: Is It Safe For Your Institution & Your Customers?"
  • "Proven Tips For Mitigating Your Top 10 Cyberthreats"
  • "Cybersecurity Risk Assessment - Are You Ready?"
REMINDER: The NYS DFS has proposed a new cyber security regulation.

 Click here to read the DFS press release
 
 Click here to read the proposed regulation.

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"Every Day Steps Towards Online Safety with Stop.Think.Connect."
 
October 2016 marks the 13th year of National Cyber Security Awareness Month (NCSAM) -- created as a collaborative effort between government and industry to ensure that all digital citizens have the resources they need to stay safer, more secure and better able to protect their personal information online.  Each week during October is dedicated to a specific cyber security theme offering the opportunity to get involved in activities most relevant to them. 
  • Week 2 (October 10 - 14): Cyber from the Break Room to the Board Room 
  • Week 3 (October 17 - 21): Recognizing and Combating Cybercrime
  • Week 4 (October 24 - 28): Our Continuously Connected Lives: What's Your 'App'-titude?
  • Week 5 (October 31): Building Resilience in Critical Infrastructure 
In celebration of NCSAM, the
New York State Office of Information Technology Services (ITS) is joining with the U.S. Department of Homeland Security and its public and private partners to help raise awareness about the importance of cyber security. 
Throughout the month, ITS will highlight activities and actions that you can take to stay safe and secure while online.
 
For week 1 of NCSAM, STOP. THINK. CONNECT. is the simple, actionable advice anyone can follow.
STOP: make sure security measures are in place.
THINK: about the consequences of your actions and behaviors online.
CONNECT: and enjoy the Internet.  
 
Whether banking, shopping, social networking, tracking our health or downloading the latest app, in today's interconnected world, practicing good cyber security is critical. A cyber tips sheet from STOP.THINK.CONNECT is available by visiting:
 
For further information and resources, please visit the ITS 2016 Cyber Security Awareness Month page: 
https://www.its.ny.gov/NCSAM16, follow on Twitter at @NYStateCIO, and on Facebook at  www.facebook.com/nystatecio.  
New Leaders In Banking Award 
& Conference 
The Independent Bankers Association of New York State (IBANYS) and Banking New York magazine want your help identifying outstanding banking professionals.  Financial professionals are commonly recognized for generating significant revenue. We're looking for those who think beyond the bottom line and regularly "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? 
  • This is your chance to make a submission for a New Leaders in Banking award.  
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. 

To nominate someone, visit:
bankingnyconference.com and then click on the New Leaders Nominations tab on top.

Questions? E-mail  thewarrengroup.com, or call  
(617) 896-5373.
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CSI Quarterly Compliance Webinar 
Next Tuesday, Oct. 11, 2016
Speaker: Keith Monson, 
Chief Risk Officer
Contact: 
Pam.Farnsworth@csiweb. com
. . .Don't miss the Computer Services, Inc. (CSI) complimentary Quarterly Compliance webinar on October 11.  Keith Monson, CSI's chief risk officer, will provide regulatory updates and an executive summary of FinCEN's Customer Due Diligence (CDD) final rule. He will discuss what your financial institution needs to know since FinCEN determined that more explicit guidance for financial institutions is needed within Bank Secrecy Act (BSA) rules and regulations to clarify and strengthen CDD with respect to "Beneficial Ownership" transparency. ( The final rule became effective July 11, 2016, with mandatory compliance beginning May 11, 2018.) Bankers need to understand who their customers are and what type of transactions they conduct to effectively combat all forms of money laundering under FinCEN's updated rule. Tune in on Oct. 11 for an overview of:
  • FinCEN's CDD final rule
  • Beneficial Ownership requirements
  • New risk-based procedures for conducting ongoing customer due diligence
  • Next steps and timeline for implementation
  Register by clicking on the link, or cutting and pasting it into your browser.
Registration Link:  
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ICBA & Dell Offering 
Member Banks Preferred Pricing 
Do you know that the Independent Community Bankers of America (ICBA) and Dell Computers have an agreement in place that  allows community banks that belong to ICBA to take advantage of preferred pricing on computer equipment such as work stations, servers and laptops? Participating banks will also have access to a dedicated account executive familiar with ICBA's program to advocate for them with appropriate Dell teams, including technical experts.  To check the September - October 2016 specials  Click here 

 .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.

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INDUSTRY INSIGHTS

Fed, CSBS Release Annual 
Community Bank Survey
The Federal Reserve and Conference of State Bank Supervisors recently released an  annual survey of the nation's community banks.
Click here to read the full study.
It  provides a comprehensive overview of the key issues and challenges facing banks with less than $10 billion in assets. The survey examines lending and non-lending activities, regulatory compliance and market conditions. Among the findings:
  • Small business lending grew by more than 7% in 2015, with small business loans representing 17%  of community banks' total loan portfolios. The survey found community banks tend to make higher-dollar loans than their larger competitors - on average, the size of a small business loan made by a community bank was $96,000, while the average loan from a larger institution was $17,000. 80% said a majority of their loans were made to existing customers. This underscores the value of building customer relationships.
  • Mortgage lending grew by 6%, but many bankers expressed frustrations with the added compliance burden in this area, especially the TILA-RESPA integrated disclosures. Nearly two-thirds agreed that TILA, RESPA and Regulation Z together -including TRID - were the most confusing regulations to follow and account for nearly a quarter of their total compliance costs.
  • Regulatory burden was named as the top reason community banks choose to exit or curtail certain lines of business, and 5.4 percent of banks that currently offer 1-to-4 family fixed-rate mortgages said they plan to exit that line of business in the future.
  • Community banks continue to adopt new technologies to keep up with competition and customer demand. 81% said they are now offering mobile banking services, up from 71% the previous year. Bankers said remote deposit capture and personal financial management tools were the most likely areas of expansion in the future. 
New York Ranked 49th In 
State Business Climate Index
The Tax Foundation, a nonpartisan tax research group, has released its  2017 State Business Tax Climate Index. The group ranked state business tax climates across the United States. According to the index, New York has the second worst tax climate in the nation for businesses -- ranked 49th, ahead of only New Jersey.  New York held the same ranking for 2015 and 2016, and ranked last in 2014. 
New York actually ranked 7th on business taxes per se, up from 11th last year, but the Foundation said its overall ranking was pulled down by some of the highest-in-the-nation individual income, sales, unemployment insurance and property taxes. The top five states in the rankings?  Wyoming,  South Dakota,  Alaska,  Florida and  Nevada.

Meanwhile, in state-by-state data for 2015 released last week by the White House, New York saw its median household income grow by 3.2%, or the equivalent of $1,899. The Ithaca and Syracuse metro areas made the fastest gains. The state's poverty rate fell by half a percentage point.  The state's poverty rate fell by half a percentage point, with 92,900 people rising above it. Also, the uninsured rate in New York fell from 10.7% to 7.1%.  The rates were below the comparable national ones.

In Other Developments:
  • A Goldman Sachs analysis of Federal Reserve data found that households owned 37% of the U.S. equity market at the end of June, a "post-crisis" high. As of 2013, about 90% of stocks and mutual funds were owned by the wealthiest 10% of households. 
  • Small business borrowing  by U.S. firms was up in August, partially because the month had more business days than July. The percentage of firms that were late on repaying existing loans also increased, data released on Tuesday showed. 
    The Thomson Reuters/PayNet Small Business Lending Index rose to 133.7 in August from an upwardly revised 123.1 in July. Borrowing by companies in most industries, except construction and recreation, fell. Small business borrowing is a key barometer of growth because small companies tend to do much of the hiring that drives economic gains.
     
    Overall, the U.S. economy grew an estimated 1.4% in the second quarter; many null economists believe that rate improved in the third quarter. However, during September companies private created jobs at the slowest pace in six months, according to a report by ADP and Moody's Analytics.
     
  • A new Consumer Financial Protection Bureau rule will mandate that packaging on prepaid cards must clearly state the that fees they may charge, and will grant users new protections. 
    The rules essentially put reloadable cards on the same level as debit cards or checking accounts, requiring that providers provide customers with monthly statements or other access to balance information; resolve disputed charges quickly, and limit customers' liability for charges on stolen cards.The CFPB spent two years finishing rules for the growing industry, which is projected to reach $121 billion in 2018.  CardHub, which tracks credit cards across the country, said 23 million consumers used prepaid cards in 2014 and loaded $76.7 billion onto them.
GOVERNMENT RELATIONS

new york state capitol 
Albany

IBANYS Studying Proposed "Zombie" 
Properties" & Cyber Security Regs 
Governor Cuomo announced the State Department of Financial Services (DFS) has proposed a regulation that mandates banks and mortgage services report vacant and abandoned properties in accordance with the new law, which was signed in June. 
IBANYS will study the regulation and seek input from membership.  The proposal  is subject to a 45-day notice and public comment period following the October 12, 2016 publication in the State register before final issuance.  The law takes effect this December 20, and addresses "zombie properties" by:
  • expediting foreclosure proceedings
  • improving the efficiency and integrity of the mandatory settlement conferences
  • obligating banks and mortgage servicers to secure, protect and maintain vacant and abandoned properties before and during foreclosure proceedings.
IBANYS worked hard to protect the interests of community banks in the process. We succeeded in inserting "carve outs" that exempt the vast majority of community banks based on a formula of their percentage of one-to-four family mortgage loans, compared to the total number of such loans in New York State. 

ALSO: IBANYS held a conference calls late last week to discuss the State Department of Financial Services' proposed cyber security regulation, and develop our comment letter.  The proposal would require banks and other financial services institutions regulated by the DFS to: 
  • Establish a cybersecurity program; 
  • Adopt a written cybersecurity policy; 
  • Designate a Chief Information Security Officer responsible for implementing, overseeing and enforcing its new program and policy;
  • Have policies and procedures designed to ensure the security of information systems and nonpublic information accessible to, or held by, third-parties
It also includes a variety of other requirements to "protect the confidentiality, integrity and availability of information systems."


Washington, D.C.

ICBA Reiterates Need For Tiered Regulation, 
 Relief For Community Banks
In an October 3 op-ed in The American Banker, ICBA President & CEO Cam Fine noted: "Community bankers are stunned by the rampant fraud perpetrated on millions of Americans and want to ensure the negative backlash from outraged consumers and policymakers does not rub off on local institutions . . . Community banks have been down this road  before, and it doesn't end well. We know what's on the horizon - the regulatory trickle-down effect.  Again and again, systemically risky banks have made reckless decisions, harmed consumers and wrought a broad-brush legislative and regulatory response. One only needs to look at the loss of 2,000 bank charters since 2009, the direct result of the financial crisis and countless other instances of Washington responding to misdeeds at the nation's largest financial firms with regulations affecting banks large and small. (ICBA)  and community banks across the country are gravely concerned that the reaction to Wells Fargo will again fail to distinguish between too-big-to-manage megabanks and locally focused community banks . . . ICBA is calling on Congress and the regulatory agencies to avoid the kinds of overreaching laws and regulations enacted after the recent financial crisis, which disproportionately affected local institutions. Further, the Wells Fargo fraud should not inhibit the passage of...tailored regulatory relief for community banks, as prescribed by ICBA's  Plan for Prosperity  platform. Much-needed community bank regulatory relief legislation is before Congress today, and its momentum should not be stalled by Wells Fargo's fraudulent activities... The bottom line is that we need to fix what's wrong with American financial services by strengthening what's right with it - community banks. By achieving tiered regulation and meaningful regulatory relief for America's community banks, we'll be on the right path to make that happen, ensuring a bright future for future generations and the communities that we proudly serve."
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INDUSTRY INSIGHTS

These IBANYS Programs
Benefit New York Community Banks 

IBANYS has introduced  several initiatives  which can  provide real value and bottom line benefits to New York community banks . Take a moment to review these programs. If you have any questions, contact us, or visit  www.ibanys.net. We hope you'll decide to take full advantage of these exciting opportunities. 
  • IBANYS and NYBDC have announced a partnership with Excelsior Growth Fund (EGF), 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.
  • The "My Wellness Resource Card" offers a low-cost, non-traditional program to help community banks to save time and money. It helps provide on demand health care from U.S. board-certified doctors who provide diagnosis, treatment options and necessary prescriptions via unlimited telephone medical consultations. The My Wellness program offers discounts and significant savings on a variety of medical and dental products, and is designed to improve productivity, decrease absenteeism and boost morale without straining your bottom line. It's an exciting new way for community banks to provide health care benefits, reduce cost and retain employees. For more information, contact Alan Justin, Managing Partner at (716) 907-5500. 
  • 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


. . .Promontory Interfinancial Network
Promontory helps financial institutions of all sizes thrive. Promontory Network members use its solutions  ̶
Bank Assetpoint®Insured Cash Sweep®, or ICS®CDARS®IND®, and  Yankee Sweep®  ̶ to source new asset opportunities, diversify their asset portfolios, reduce collateral requirements, purchase funding, and build multi-million-dollar relationships. 

To find out how Promontory can help your bank manage its balance sheet more profitably,
contact Kevin Hamilton, Regional Director/NY: 866-776-6426, Ext. 3329; khamilton@promnetwork.com. Or visit the website at: www.promnetwork.com. 


 

...The New York State Assembly has not had a Republican majority since 1975? Democrats currently hold a 62-seat supermajority in the 150-seat chamber. Meanwhile, the New York State Senate was controlled by Republicans for all but one year between 1939 to 2008. Democrats won the majority in 2008 and ruled the chamber briefly, but a 2009 agreement between a small group if Democrats and the Republicans installed a governing coalition that has seen a GOP Majority Leader back in power. The current Senate breakout is 31 Republicans, 25 regular Democrats and 5 Independent Democrats, with one vacancy. 



 

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