• IBANYS' Annual Convention ("The Power Of Community Banking")  Is September 25 - 27 In Niagara Falls 
  • Latest Updates From Albany & Washington
  • IBANYS Opposes Letting Credit Unions Into State Business Development District Program
  • IBANYS Joins ICBA Amicus Brief On Credit Union Lawsuit
  • Updates On Economic, Banking & Business Trends Impacting Community Banks
  • Nominees Coming For OCC, Fed. . .And Much More!

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?
for our 2017 PAC contribution form. Help support IBANYS' political action efforts in New York State.


June 7, 2017

New York Community Banks, IBANYS Preferred Providers & Associate Members:
Mark Your Calendars & Plan To Attend
IBANYS' annual convention will gain bring together leaders of New York's community banking industry -- the senior executives and senior managers of our member banks -- with IBANYS preferred providers, associate members and a truly outstanding array of speakers. Watch this space for details (coming soon) on program and registration, and on 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 that over 100 movies and TV shows have been filmed in Niagara Falls, NY? How many can YOU name? Try your luck. . .then, check yourself against the results below.

  . .. .  

IBANYS: Don't Allow Credit Unions To Join 
State BDD  (Muni Deposits) Program
IBANYS is closely monitoring a Department of Financial Services bill (A.6946-A, 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. It  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), of which Senate Banks Chairman Hamilton is a member. 

IBANYS is reminding state legislators: 
  • 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
  • the loss of municipal deposits would have a negative impact on business and balance sheets. IBANYS is considering a number of options. 
  CLICK HERE to read IBANYS' Memo in Opposition to this legislation.

In other legislative news, IBANYS is monitoring legislation on the Senate Banks Committee to update the State's check cashers law (S.5920, Savino/ A.7705A, Rodriguez). It would expand the services available to check cashers, including the taking of deposits and lending up to $25,000. 

Cuomo Wants To "Take Back The House" 
For Democrats
Governor Cuomo held a "New York Fights Back" rally in Manhattan yesterday with the House Democratic Leader Nancy Pelosi to kickoff an effort to help Democrats take back the House in 2018. Incumbernt New York GOP Representativess who reportedly could be targeted include John Faso, Claudia Tenney, Elise Stefanik, Chris Collins, Lee Zeldin and Peter King. It's the first time the Governor, up for reelection in 2018 and often mentioned as a possible 2020 Democratic presidential candidate, has actively involved himself in efforts to regain control of the House. 

IDC Rejects Calls To Unite With "Regular" 
Senate Democrats
Meanwhile, the State Senate's Independent Democratic Conference, led by Sen. Jeff Klein (Bronx), responded to those calling for the IDC to disappear and fold its members back into the mainline Democratic conference with a simple message: "No." Sen. Klein stated:  "It's always been clear. Today, tomorrow and next year, the IDC will remain an independent conference.'' In fact, he called for the resignations of the "regular"  Senate Democratic Leader and Deputy Leader Andrea Stewart-Cousins (Westchester) and Michael Gianaris (Queens). Apparently, the IDC will continue alligning with  Senate Republicans led by Sen. John Flanagan to form the majority coalition in the chamber.

State Revenue Shortfall Worries DiNapoli
In the first month of the fiscal year, New York State is already $1 billion short of the revenue it anticipated it would bring in. The shortfall caused State Comptroller DiNapoli to warn that the state may not raise enough money to pay for the state budget passed in early April, saying: "We have to monitor very closely in the coming months what's happening to the economy." 


IBANYS Joins ICBA's Amicus Brief Re: 
Lawsuit Against NCUA Credit Union Rule 
ICBA and a coalition of affiliated state community banking associations ( including IBANYS) filed a friend-of-the-court brief strongly supporting the American Bankers Association's lawsuit challenging the National Credit Union Administration's field of membership rule. Community banks are united in opposing the NCUA's "unlawful attempt" to dramatically increase the powers of tax-exempt credit unions beyond their statutory limits.  Click here to read the amicus brief.  Click here to read the ICBA release.

President To Name Otting At OCC 
The Trump administration plans to nominate former One West CEO Joseph Otting to serve as for Comptroller of the Currency.  Senate confirmation is required.  Otting worked closely with Treasury Secretary Steve  Mnuchin  at One West after Mnuchin purchased the bank in 2009.  The next Comptroller is expected to play a major role in carrying out President  Trump's  promise to roll back regulations, including Dodd-Frank. Otting would succeed Acting Comptroller Keith Noreika, who would would become First Deputy Comptroller upon Senate confirmation.

. . .And, Begin Remaking The Fed
President  Donald Trump appears ready to begin remaking the  Federal Reserve, pending Senate confirmations.  He will reportedly   
nominate Randal Quarles, former Treasury official in the George W. Bush administration, for the Federal Reserve's vice chair for supervision, and former Richmond Fed economist Marvin Goodfriend to fill a second Fed vacancy. Analysts see  the two likely appointments as first steps in a significant remaking of a Fed that has for the past decade practiced "loose" monetary policy while being "tight" on banking regulations. He will also
have the opportunity to name one more person now, and can fill two critical vacancies in 2018: The posts now held by Chair  Janet Yellen  and Vice Chair  Stanley Fischer National Economic Council Director Gary Cohn said the administration has not decided on whether to replace Chair Yellen when her term expires in February.  Meanwhile, a number of economists who served in the Obama administration endorsed President Trump's selection of  Kevin Hassett to chair  the Council of Economic Advisers . Hassett had a hearuing yesterday before the Senate Banking Committee. 

Treasury's initial report on financial regulations, required by a February executive order, may be released as soon as today. Secretary Mnuchin has indicated that it  will focus primarily on community bank relief .

House Ready To Vote On Financial 
The House may vote on the Financial CHOICE Act (H.R. 10), the regulatory relief bill sponsored by House Financial Services Chairman Hensarling, as soon as tomorrow. It was recently reported out of the Financial Services Committee by a party line vote. The House Rules Committee last night cleared (for a floor vote) a Republican effort to strip much of the Dodd-Frank Act. The Rules Committee - the last stop for every bill considered by the House - cleared the Financial CHOICE Act 9-4 along party lines and with few amendments. The Act, supported by ICBA and IBANYS, contains a number of provisions from ICBA's "Plan for Prosperity" regulatory relief plan. The provision to repeal the Durbin Amendment (price controls on debit card interchange) has been pulled from the bill, but it still includes reforms to mortgage lending, call report and data collection advocated by ICBA.
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 CLEAR Relief Act bills include relief from, among other things, mortgage rules, the Volcker rule, the TILA-RESPA Integrated Disclosure rule and Sarbanes-Oxley requirements.  New York community bankers: Use ICBA's "Be Heard" Grassroots site (icba.org) to contact your Representatives.  

  • Job creation fell sharply in May, with just 138,000 new positions created. Meanwhile, the unemployment rate declined to 4.3%, according to U.S. Labor Department. Wage growth also disappointed, with average hourly earnings rising at a 2.5 percent annualized pace.
  • The monthly Job Openings and Labor Turnover Survey ("JOLTS") released by the Labor Department showed there were 6.0 million job openings on the last day of business in April. That's an increase of 259,000 from March. Hiring decreased by 253,000 jobs, to 5.1 million.
  • Roughly 4 in 5 members polled by the National Association for Business Economics don't expect to see an infrastructure spending package enacted until next year or later. Moreover, nearly 3 in 5 don't expect to see a tax reform package before next year. More than 90 percent pegged the odds of a recession this year at less than 25 percent, and nearly 80 percent giving the same recession odds for next year.
"The Emerging Digital and Mobile Lending Opportunity for Community 
Financial Institutions" . . .
Wednesday, June 20, 11:00 AM
CLICK HERE to register!

Community financial institutions do not make money on small business loans under $100k or consumer loans under $30k. Now, with digital lending technology, you can! 

Today most checking customers hold these loans elsewhere, which puts existing relationships and growth at risk. Cloud-based digital lending technology enables you to increase efficiency 80% and profitability deliver these loans, while providing an exceptional customer experience in just minutes-online or on any mobile device. Attend this FREE, one-hour webinar on Tuesday, June 20 at 11 am EST to learn how several community banks are using digital lending to enhance the customer experience and achieve efficiencies and growth - all under your brand, with your underwriting, your compliance and your control, with loans on your balance sheet. Attend this webinar to learn how your bank can streamline lending processes, grow your loan portfolio and recapture loans lost to non-bank lenders using digital lending technology. 
The webinar will cover:
  • The $30 billion income opportunity for community banks documented by multiple studies, AND the potential ROA your institution could enjoy.
  • The requirements of customers today for a digital and mobile lending experience.
  • How digital lending streamlines your lending processes and reduces the cost to underwrite and service loans for less than $250 annually! 
  • Why digital lending provides sound underwriting and automated risk rating & credit monitoring.
  • How digital lending manages loan applications, adverse action, Reg B and other compliance efficiently and with no paper or staff time.
  • How database design keeps your customer tax ID or account number data safe outside your firewall.
  • How digital marketing drives digital loans for small business and consumer segments.
CLICK HERE to register! Questions? Contact  BSG Financial Group  Marketing Manager Michele Rehm:

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:  http://nbibanys.phecard.com.

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:

. . .Bankers Healthcare Group
Bankers Healthcare Group originates quality medical loans for hundreds of community banks nationwide. To date, no bank has experienced a loss with BHG originated loans.  For more information, contact  Meghan Crawford
VP, Bank Sales:  (646) 876-4063. Or, visit the website at  www.bhg-inc.com. 

. . . That the  Home Ownership Rate in the United States decreased to 63.60% in the first quarter of 2017, down from 63.70% in the fourth quarter of 2016. Home Ownership Rate in the U.S. averaged 65.27% from 1965 until 2017, reaching an all time high of 69.20% in the second quarter of 2004 and a record low of 62.90%  in the second quarter of 1965.


 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