• Sign Up Now For IBANYS Committees
  • IBANYS 2018 Meeting Dates -- Mark Your Calendars
  • Latest From Albany & Washington
  • Industry Trends & Updates
  • 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.


This is such a wonderful time of the year!  While there is never enough time to do everything you want to do around the holidays, I hope each of us takes the time to slow down and give thanks to all those around us who make us laugh and smile in both our personal and professional lives.  

We, at IBANYS, want to wish all of you, your families, your friends and colleagues a very Happy Thanksgiving!  Enjoy a happy and healthy holiday season!!
John, Linda, Steve & Bill     

Has your bank signed up to serve on IBANYS' 2018 committees?  All need your active support and participation, and play a vital role in our success. IBANYS committees are responsible for: 
  • Helping to review and develop legislative and regulatory policy positions
  • Designing educational programs 
  • Providing important peer networking and dialogue opportunities and 
  • Reviewing and recommending new, innovative products and services for community banks. 
Sign your bank up to serve on our IBANYS:
  • Government Relations Committee 
  • CFO/Senior Management Peer Group Committee
  • Compliance Peer Group Committee
  • Security Committee and 
  • Our new HR and Operations Committee 
Community bank Presidents & CEOs are encouraged to serve  -- but, IBANYS would also welcome designated representatives to serve on their behalf of the bank if that works best.  Tell us which committees your bank wants to serve on, and who will be your representatives on each. . .
Email Linda Gregware or John Witkowski (Lindag@IBANYS.net, Johnw@IBANYS.net) or call us at (518) 436-4646.

IBANYS Sets Dates For 2018 
Meetings & Conferences
IBANYS has finalized dates and locations for our 2018 meetings and conferences. New York community bankers: Please Click here to view the full 2018 IBANYS Meetings Calendar. Then, mark your calendars, and share this calendar with your senior management team, directors, and key officers and personnel. IBANYS preferred providers, associate members, sponsors and business show exhibitors: Please hold these dates and plan to participate in another great year of IBANYS programs!

IBANYS member banks: Please also watch for IBANYS 2018-19 member bank dues notices, which will be sent out in the near future.


  • There is growing concern in Albany over the 2018-19 state budget. Revenue from taxes is shrinking, coming in lower than state budget officials had expected, although Wall Street, a main driver of the state's economy is doing well. State Comptroller DiNapoli said the problem is an uneven economic recovery.  "It's a different picture depending on which part of the state that you're in. So while the downstate counties are doing relatively well, we have upstate counties that are not." The state's  budget deficit heading into the new year may be as high as $4.6 billion if spending continues at current level. Even if spending is capped at a 2% increase, the deficit is $1.7 billion.  "The Legislature and the Governor are going to have to make some very tough decisions on spending as we head into the budget cycle next year," DiNapoli said.  New York could be impacted even more if Congress votes to eliminate deductions for state and local taxes as part of tax reform measures. 
  • Senate Majority Leader John Flanagan (R-L.I.) is talking up a state income tax cut set to take effect at the start of 2018, and says the Senate Republicans deserve credit. It will be worth $4.2 billion annually once fully phased in, and will reduce rates by 20% for middle-income earners. "We have led the way on controlling state spending, capping local property taxes, and soon, millions of middle class taxpayers will get to keep more of their income to invest and spend as they see fit. This tax savings will continue to be key to creating better opportunities for middle class New Yorkers and ensuring our state is more affordable for both businesses and families."When the cuts are fully phased in, the state income tax rate will be at its lowest in 70 years, decreasing from 6.85 percent to 5.5%.
  • Key appointments and posts in Gov. Andrew Cuomo's administration - from press secretary to the state's top jurist - are now increasingly being staffed by women. Melissa DeRosa is the first woman to hold the job of Secretary to the Governor (the top aide) and the Executive Deputy Secretary job is now  Jill DesRosiers. The newly appointed Director of Operations is Cathy Calhoun; the Governor's Chief of Staff job is Linda Lacewell, and the Deputy Chief of Staff is Kelly Cummings. The Press Secretary and First Deputy Press Secretary are Dani Lever Abbey Fashouer. The Lt. Gov. is Kathy Hochul (the third woman to hold that job), and Janet DiFiore is the State's Chief Judge.
  • U.S. Senator Schumer has joined the push for Democratic unity in the NYS Senate by urging the eight-member Independent Democratic Conference to align with the party's mainline conference in the chamber. "They're elected as Democrats and they should caucus with the Democrats and create a Democratic majority. That's the right thing to do. I have worked very hard through the years to help elect Democrats and create a Democratic majority in the senate. The IDC, they don't run as republicans, they just caucus with the Republicans. That's wrong. They ought to caucus and work with the Democrats."


ICBA continues urging Subchapter S banks to weigh in with Congress to protect the Subchapter S model. Community bankers can use ICBA's " Be Heard grassroots action center" at www.icba.org  to tell Congress to ensure that the proposed 25% rate for S corporation community bank business income is applied fairly. The custom letter urges lawmakers not to undermine the policy via restrictive formulas (or "guardrails") that would apply the 25% rate to only a small percentage of banks' income and tax the reOfficials from the FDIC and OCC expressed support for community bank regulatory relief in separate speeches. Speaking in San Francisco, FDIC Chairman Thomas Hoenigadvocated relief for community banks principally engaged in traditional commercial banking activities, citing the impact of excessive regulation on industry consolidation and concentration.  

Officials from the FDIC and OCC expressed support for community bank regulatory relief. Speaking in San Francisco, FDIC Chairman Thomas Hoenig advocated relief for community banks principally engaged in traditional commercial banking activities, citing the impact of excessive regulation on industry consolidation and concentration. 

Rep. Patrick McHenry (R-NC), vice chairman of the House Financial Services Committee, is reportedly  the frontrunner to succeed Chairman Jeb Hensarling (R-TX) in that position after Hensarling leaves the House at the end of the 115th Congress. Rep. McHenry, the fourth-ranking member of the House GOP leadership, is also interested in moving up the chamber's leadership ranks. Others mentioned as alternatives to McHenry include New York's Peter King R-LI) and Reps. Lucas (OK), Royce (CA), Luetkemeyer (MO), Huizenga (MI) and Duffy (WI). The list is likely to change over the next year. If Democrats win the House, Rep. Maxine Waters is next in line for the chair.
Selecting the next chairman won't happen until after the November 2018 mid-term election. A steering committee of congressional leaders will recommend its choice.

The U.S. Senate confirmed Joseph M. Otting as the Comptroller of the Currency. Meanwhile, with CFPB Director Richard Cordray having announced he would step down by the end of this month, President Trump said he will appoint White House Budget Director Mick Mulvaney to lead the Bureau in the interim. (When in Congress, Mulvaney favored the elimination of the CFPB.) FDIC Chairman Martin Gruenberg said this week that he would remain in office after his term expires on November 29 until a successor is confirmed by the Senate. The President has not yet nominated a successor. 

Federal Reserve Chairwoman Janet Yellen said she would resign as a member of the Fed's Board of Governors once her successor as chairman has been sworn in. She commented that the Fed is "reasonably close" to its goals, and should keep gradually raising U.S. interest rates to avoid letting inflation drift below target for too long and/or driving unemployment down too far.


FDIC: Banking Industry's "Solid Quarter"
--Community Banks Update
The FDIC reported yesterday that U.S. banks had  "another solid quarter" of revenue, profits, and loan growth for the three months ended Sept. 30. Net income in the banking industry climbed to $47.9 billion in the third quarter, an increase of 5.2% compared to the same period the previous year. Community banks reported $6 billion in net income in the third quarter, up $513 million (9.4%) from the same time a year ago. At the 5,294 insured institutions identified as community banks by the FDIC, net operating revenue rose $1.5 billion (6.7%) and net interest income increased $1.7 billion (9.7%). Noninterest income declined 3.4% as loan-loss provisions increased 5.5% and noninterest expenses rose 4.3%. Loan growth was 7.3%.  The agency noted some banks, especially smaller ones , remain vulnerable to interest rate risks because many of their assets are in loans and long-term securities.

The Deposit Insurance Fund (DIF) balance increased $2.9 billion to $90.5 billion as of Sept. 30, with the DIF reserve ratio rising to 1.28% from 1.24% at the end of June. Estimated insured deposits rose 0.7%.

According to the National Association of Realtors, existing-home sales increased 2% in October to their strongest pace since June. Sales were down 0.9% from a year ago. Supply shortages led to fewer closings on an annual basis for the second straight month.  

Empire State To Open Two 
More Branches
ES Bancshares, Inc., the parent company of Empire State Bank, announced the Bank has received all regulatory approvals to open two new full-service branch offices on Victory Boulevard in Staten Island and 18th Avenue in Brooklyn. The branches are expected to open in the second quarter of 2018.  Empire State Bank was originally chartered in 2004 and has $269 million in total assets. The Bank offers a wide range of financial services through its banking offices in Newburgh, Brooklyn, and Staten Island. "We are excited to expand our existing franchise and support our customer base as we continue to implement our business plan," said CEO Philip Guarnieri. President & COO Thomas Sperzel noted,  "Customers will be able to conduct all of their banking business, from opening new accounts to applying for loans, at our new locations. These two branches will bring the total number of Empire State Bank offices to five." 

Quarterly Compliance Webinar
Thursday, November 30
CSI will host its next complimentary Quarterly Compliance Update Webinar on Thursday, November 30. Click here for registration Link
Speakers will include:
  • Keith Monson, chief risk officer, CSI
  • Ryan Rasske, senior vice president of risk and compliance, American Bankers Association (ABA)
You'll hear an executive summary of FinCEN's final rule, and how -- under the Bank Secrecy Act (BSA) -- it will affect your financial institution. Translation: You'll need to make some changes, including adjustments to your customer due diligence and risk-rating practices, in order to be compliant with the new rule by May 11, 2018.
Save Your Spot to:
  • Review FinCEN's final rule and a helpful timeline for implementation
  • Discuss beneficial ownership requirements
  • Develop new risk-based procedures for conducting ongoing customer due diligence
  • Examine the latest regulatory updates from this quarter
For details, contact Pam Farnsworth:  (800) 545-4274  X: 16053, Pam.Farnsworth@csiweb.com.

Housing Starts Up
The U.S. Commerce Department reported that housing starts were up 13.7% in October, but remained down 2.9% from the same time a year ago. Single-family starts were up 5.3% month-to-month. Building permits rose 5.9& from the previous month and 0.9% from last year.

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 

. . .Strategic Resource Management, Inc. (SRM)
SRM is helps financial institutions to reduce expenses, enhance revenue and maximize bottom line performance. Drawing on its extensive experience, market insight, and proprietary benchmarking database, SRM helps banks improve their bottom line, without sacraficing qulaity or valued vendor relationships.  More than 700 financial institutions have trusted SRM to identify and negotiate cost savings and new revenue opportunities that have delivered more than $2.2 billion of value. C ontact VP  Ben   Mrva (901) 681-0204, bmrva@srmcorp.com. Or, visit the website at www.srmcorp.com.

. . .That Thanksgiving has been celebrated  as a federal holiday in the United States since 1863, when President Lincoln proclaimed a national  day of "Thanksgiving and Praise to our beneficent Father who dwelleth  in the Heavens," to be celebrated  on the last Thursday in November? 
Thanksgiving had previously been celebrated nationally on and off since 1789, after Congress requested a proclamation by  George Washington.


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