• Reg Relief, Tax Reform On Move In Washington
  • New Leader At OCC-- And Soon, At FDIC
  • Latest Updates From Our State & National Capitals 
  • Focus On Industry Trends & Developments
  • Sign Up For IBANYS' 2018 Committees
  • Have you visited our newly updated website at www.ibanys.net yet?

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.


December 6, 2017

On Reg Relief For Community Banks & On S.2155 -- The Economic Growth, Regulatory Relief and Consumer Protection Act: 

"The bipartisan proposals on which we have agreed will significantly improve our financial regulatory framework and foster economic growth by right-sizing regulation, particularly for smaller financial institutions and community banks."
--U.S. Senate Banking Chair Mike Crapo (R-ID)

"The underlying goal of the legislation is one I have long advocated: easing the burden for the banks that pose less risk and cost to the financial safety net and ultimately to the taxpayer while enabling stronger economic growth..." 
-- FDIC Vice Chairman Thomas Hoenig 
Community Banks Closer To Significant Regulatory Relief from Congress. 
Yesterday, t he U.S. Senate Banking Committee approved legislation to provide major relief long sought by both ICBA and IBANYS, and sent the  bipartisan "Economic Growth, Regulatory Relief and Consumer Protection Act" (S. 2155) to the Senate floor. As ICBA President & CEO Cam Fine noted, this represents  a big step forward for the industry's regulatory relief push. S.2155  would implement numerous measures from ICBA's Plan for Prosperity regulatory relief platform, which IBANYS has strongly endorsed and advocated for in numerous meetings with our New York Congressional Delegation and our two U.S. Senators. Among other things, the bill would increase Home Mortgage Disclosure Act exemptions, expand the "qualified mortgage" (QM) definition, simplify capital requirements, and provide relief for larger community banks. 
Thanks to our New York community bankers who have contacted their Representatives and Senators and urged them to support community bank regulatory relief.  The work continues: The Senate legislation, once approved, must be reconciled with House's version. Tax reform efforts continue as well.  IBANYS will work closely with ICBA on these and other important issues impacting community bankers in Washington -- and, we are busy preparing for the 2018 NYS Legislative Session that begins January 3. Thanks for your continued support and participation.


Is your bank signed up to serve on IBANYS' 2018 committees?   Our committees are the lifeblood of IBANYS. Among other things, they  review and develop legislative and regulatory policy positions. . . design educational programs. . .p rovide peer networking and dialogue opportunities. . . and,  review and recommend new, innovative products and services for community banks.  Sign your bank up today to serve on these IBANYS Committees:
  • Government Relations Committee 
  • CFO/Senior Management Peer Group 
  • Compliance Peer Group 
  • Security Committee
  • Our new HR and Operations Committee 
  • Innovation Committee
E-mail John Witkowski and/or Linda Gregware (Johnw@IBANYS.net, Lindag@IBANYS.net) to tell us which committees your bank wants to serve on. 

IBANYS Member Banks Dues Notices Mailed 
IBANYS 2018-19 member bank dues notices were mailed to you on Monday, December 4. Please watch your incoming mail.

IBANYS 2018 Meeting Dates Set -- 
Save These Dates!
IBANYS 2018 meeting dates are set. Please review this IBANYS 2018 Calendar. Member banks: Please share with your senior management team, key officers and personnel and directors. Preferred providers, associate members and business show exhibitors: Mark your calendars and plan early to attend, participate, sponsor and/or exhibit.  



January 3 "State Of The State" Address To 
Kickoff 2018 NYS Legislative Session
Gov. Cuomo will return to the tradition of giving a single "State of the State" speech January 3 in Albany to convene the 2018 State Legislative session. Last year, he broke with the tradition by delivering a six-city series of speeches across the state, from  Western New York to Long Island. The Governor will also unveil his proposed 2018 state budget in early January. The 2018 session will be a challenging one, with expectations that the budget may feace a significant deficit and, with the Governor, Lt. Governor, State Comptroller, Attorney General and all 213 seats of the State Legislature (63 in the Senate, 150 in the Assembly) up for election. 

Meanwhile,  Gov. Cuomo, New Jersey Governor-elect Murphy and California Gov. Brown held a conference call to mount an  eleventh -hour stand against the GOP-backed tax plan in Washington, but it is not clear how states can respond. Cuomo has been strongly critical of the plan, especially the push to repeal the state and local tax deductions that could prevent New York residents who itemize their deductions from writing off property and state income taxes on their federal returns. He has said it would play havoc with the state's budget and fiscal situation. 


Senate Banking Committee Approves Key Regulatory Relief Bill
As noted in President Witkowski's message above, t he U.S. Senate Banking Committee approved legislation to provide major relief long sought by both ICBA and IBANYS, and sent the bipartisan "Economic Growth, Regulatory Relief and Consumer Protection Act" (S. 2155) to the full Senate for a vote. The Committee approved the bill by a vote of 16 to 7. It includes provisions from ICBA's "Plan for Prosperity" platform, and would increase Home Mortgage Disclosure Act exemptions, expand the "qualified mortgage" (QM) definition, simplify capital requirements, and provide relief for larger community banks. Passage would be a major step toward achieving significant, meaningful regulatory relief for community banks. If approved, S.2155 will need to be reconciled with the House version championed by House Financial Services Chairman Hensarling, which goes beyond Senate Banking Chairman Crapo's bill (e.g., changes to Dodd-Frank, significantly altering the Consumer Financial Protection Bureau and repealing Volcker Rule trading restrictions).

The Banking Committee also voted 22-1 Tuesday to recommend confirmation of Jerome Powell as the next chairman of the Federal Reserve. Sen. Elizabeth Warren (D-MA) voted against the recommendation. 

House To Vote On Mortgage Relief Act
ICBA has called on the House to pass legislation to ease mortgage regulations on community banks. The Community Institution Mortgage Relief Act (H.R. 3971), introduced by Rep. Claudia Tenney (R-Central NY), includes provisions from ICBA's Plan for Prosperity on escrow and mortgage-servicing rules. M ortgage loans held in portfolio by financial institutions with assets of $25 billion or less would be exempt from mandatory escrow requirements. The bill would also increase the Consumer Financial Protection Bureau's (CFPB) small-servicer exemption limit from 5,000 loans to 30,000 loans serviced annually.

Latest Update On Tax Reform In Washington
Senior House Republicans are reportedly exploring changes to their tax plan in order to lower tax bills for Californians and others who pay high state income taxes (e.g., New York).  House Ways and Means Chair Brady (R-TX) said tax writers are looking at a number of ways to give relief to residents of high-tax states, including: 1) opening up the property tax deduction, capped at $10,000 in the legislation, to state and local income and perhaps sales taxes, 2) expanding eligibility for the child tax credit to more affluent households, or 3) rearranging the individual tax brackets so taxpayers pay lower rates. This week, Rep. John Faso (R-Hudson Valley) reiterated he will vote against any final tax reform bill that does not address his state and local tax deductions (SALT) concerns, and Rep. Dan Donovan (R-SI) said he will continue fighting to keep the state and local tax deduction in the Republican tax reform plan, and doesn't care "how many feathers he has to ruffle" to try and "stop this tax hike."  No New Yorkers are on the House Conference Committee to seek a compromise tax bill with the Senate, nor will either New York Senator likely participate. President Trump has told congressional leaders he'd like a final deal on tax reform to move faster than their Dec. 22 goal. 
  • Meanwhile, through aggressive outreach and advocacy efforts, ICBA (and IBANYS) and the community bank industry significantly improved the Tax Cuts and Jobs Act's (H.R. 1) treatment of Subchapter S community banks, non-qualified deferred compensation plans, mortgage-servicing rights, and more. The House and Senate now proceed to conference, where we will work to ensure that final tax reform is a pro-growth tax code that serves community banks and those we serve.  
New Day, New Ways At CFPB
Since recently taking over as Acting Director at the Consumer Finance Protection Bureau (CFPB), OMB Director Mick Mulvaney has made a number of changes. He briefly  stopped approval of payments to some victims of financial crime, halted hiring, froze all new rule-making and ordered a review of active investigations and lawsuits. (Some will be abandoned.) Mulvaney noted:  "This place will be different, under my leadership and under whoever follows me." 


Otting Sworn In At OCC
Joseph Otting has been sworn in as the 31st Comptroller of the Currency. The President nominated him last June. He succeeds Keith Norieka, who resigned after serving for approximately six months. Norieka had replaced Thomas Curry, who stepped down May 5 after more than five years in the position. Otting served as the CEO of OneWest from 2010 until 2015, working alongside Treasury Secretary Mnuchin who was Chairman. Otting laid out his vision for how the agency should regulate the banking industry. In part, he stated: "As a career banker, I know firsthand the importance of effective supervision and the value that OCC examiners and other professionals provide. I also know the challenges bankers face as they work to meet customer needs while coping with unnecessary regulatory burden that makes it more difficult and complicated than necessary." 

McWilliams Nominated As FDIC Chair
President Trump nominated Jelena McWilliams  as Chair of the FDIC. She will be nominated to serve the remainder of a six-year term on the FDIC Board (expiring July, 2019), and as chairperson for five years. Ms. McWilliams w as senior counsel to then Senate Banking Chairman Shelby (R-AL), and  spent three years as an attorney for the Federal Reserve Board of Governors.  She is now chief legal officer at Fifth Third Bancorp. Current FDIC Chair Martin Gruenberg plans to serve until his term expires this month. 

Goodfriend Nominated As Fed Governor
President Trump has nominated Marvin Goodfriend for a seat on the Federal Reserve Board of Governors. He is professor of economics at Carnegie Mellon University, and was previously head of research at the Federal Reserve Bank of Richmond. If confirmed, Goodfriend would join current Governor Jerome Powell (nominated to replace Janet Yellen as Chairman), recently appointed Vice Chair for Supervision Randal Quarles and Fed Gov. Lael Brainard on the Fed Board. The Board's capacity is seven.
What Are The Risks To Banking System?
According to the Treasury Department's Office of Financial Research, the banking system is far more resilient than it was when the financial crisis loomed a decade ago, but new vulnerabilities have emerged, including in the last fiscal year. Risks currently fall in the medium range. Among the key risks cited in the OFR's new report: Uncertainty about the resolvability of major banks' derivatives profiles, and multiple global systemically important banks failing at the same time.  The failure of a large financial institution could still set off or magnify a crisis. The report says even with post-crisis rules aimed at laying out a plan to deal with the potential collapse of a large institution, the financial system could be shaken if one or more big banks fail. Meanwhile, the Trump administration has reportedly told employees of the Office of Financial Research to expect deep budget and staffing cuts. 

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. 

"Cure The Blue" Helps Banking Industry
Battle Prostate Cancer!
The "Cure the Blue" program sponsored by the Buffalo Bills Alumni Foundation allows New Yorkers to participate in one of the most comprehensive efforts to help promote prostate cancer awareness and research in the United States. September was National Prostate Cancer Awareness Month, and Lake Shore Savings Bank provided prostate cancer literature and Cure the Blue information at all eleven of its branches and their headquarters in Dunkirk. The bank also offered Cure the Blue ceramic lapel ribbon pins for a $5.00 donations to Cure the Blue to all their customers.  "We fully understand the severity of this disease and the devastating effect it can have on families" said Lake Shore Savings Bank President and CEO Dan Reininga. "Our support of the Buffalo Bills Alumni Foundation's "Cure the Blue" initiative is something that we are taking very seriously and are proud to support." Buffalo Bills Wall of Famer and Alumni Foundation President Booker Edgerson, a two time prostate cancer survivor, said the bank has been a tremendous longtime supporter, noting: "They have really stepped up to the plate with their unwavering support of our Cure the Blue initiative." IBANYS urges all of our member banks, associate members and allies to join the effort. Cure the Blue" raises funds and awareness regarding prostate cancer in New York State. Visit curetheblue.com to get involved! Of all new cancer cases in the nation, prostate cancer represents 9.6%. In 2017, estimates are there will be 161,360 new cases, and that more than 26,000 people will die of the disease. Support IBANYS' "Cure the Blue" campaign to help New Yorkers participate to promote prostate cancer awareness and research.

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: (716) 907-5500. They also offer  a unique program providing a $500 reba
te on any new Fiat, Chrysler, Dodge, Jeep, Ram or Hyundai vehicle. It may only be offered though individual banks, not through IBANYS itself. If your bank and employees might be interested, drop us a line and we will forward it to Alan Justin, who will reach out to you. I
f you are not currently participating in the My Wellness Resource program, we encourage you to take a fair & objective look at the program!

Secure, Enhanced Internet Presence
The .bank program by fTLD operates trusted, verified, more secure, easily-identifiable internet locations for financial companies and 
customers.  www.icba.org

Online Lending
Excelsior Growth Fund (EGF) is NYBDC's nonprofit Community Development Financial Institution and IBANYS' exclusive online lending partner. Visit 

. . .Smith & Wilkinson
The team at Smith & Wilkinson are much more t han just effective recruiters. They're thought leaders on all things talent management.  They're friends, confidants, and career counselors for executives around the country. They're exceptionally dedicated problem-solvers for clients in need of top talent.  Their  Purpose is to grow companies and advance careers by providing liquidity to the hiring market. Their  brand  is built every day through every phone call.  They cultivate relationships with clients and candidates that bring reciprocal value, are fair to all concerned, and that build good will and friendships through mutual success. They build companies, help individuals manage their careers and strive to provide value at every step. Call Cameron Boyd (207-289-3129) or Chris Kelly (207) 289-3135. Or, visit  www.smithandwilkinson.com.   

. . .That with Joseph Otting nowb having taken office,  31 individuals have served as U.S. Comptroller of the Currency -- and five have been from New York State? 
The New Yorkers:  
  • John Hawke (1998-2004)
  • John Heimann (1977-81)
  • Lawrence Murray (1908-1913)
  • A. Barton Hepburn (1892-93)
  • Freeman Clarke (1865-66)




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 former 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