• President John Witkowski: It's Time To Get Involved For 2018
  • From Albany & Washington
  • Latest Industry Trends & Updates
  • 2017 Election Results
  • 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 Week's "Quote To Remember" About Community Banks. . .
"Community banks specialize in serving small businesses, which still account for the majority of new jobs. Small business lending is an essential part of community bank portfolios, particularly at the smallest banks.  Community banks hold 43 percent of all small loans to businesses and farms in the United States - more than three times their 13 percent share of industry assets. . .And they serve markets that tend to be neglected by larger noncommunity banks.  As of 2014, community banks held more than three-quarters of total deposits in 1,244 counties, or about 40 percent of all U.S. counties. In around half of those counties, the only FDIC-insured institutions operating a physical office are community banks."

--Martin Gruenberg, Chairman, Federal Deposit Insurance Corporation 

November 8, 2017

A Message From President 
John Witkowski:
It's Time To Get Involved For 2018 --
Here's How!
With the calendar now well into the home stretch of the year, it's time to redouble our efforts to make certain we are ready to begin 2018 with the programs, issues, and services you want and need most. As with any organization, an association is only as strong as its membership. In the case of our Independent Bankers Association of New York State, that's especially true.  While many groups say they are "member driven" -- IBANYS truly is. 
  • We rely on YOUR involvement and support.  
  • We draw strength from YOUR engagement.
  • We need YOUR input, ideas and active participation to ensure we meet YOUR needs, and represent YOUR interests.
One very important way to do this is to join our IBANYS Committees -- the most direct way to have a say in your association -- for 2018, and in the future. 

IBANYS Committees  are the lifeblood of our efforts. They are responsible for: 
  • Helping 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 
  • Bank Executive Symposium (previously our CFO/Senior Management Committee)
  • Compliance Peer Group Committee
  • Security Committee and, our new 
  • HR and Operations Committee all need your active involvement. 
Yes, we invite member bank Presidents & CEOs to serve  -- but, we also welcome their designated representatives to serve on their behalf if that arrangement works best. 

Now is the time to get involved, and play a vital role in making sure IBANYS is everything your bank wants and needs us to be on your behalf.
Tell us which committees your bank wants to serve on, and who will be your representatives on each. Email Linda Gregware or myself (Lindag@IBANYS.net, Johnw@IBANYS.net) or call us at (518) 436-4646.
- John Witkowski


Legislative Introductions
Among the recent legislative introductions in Albany is a bill from NYS Attorney General Schneiderman regarding data security. A.8756 (Kavanagh)/ S.6933 (Carlucci) would: expand the scope of information covered under the State's breach notification law; update notification requirements in the event of a when breach, and exempt institutions already complying with the recent State DFS  regulations.

Cuomo, Schumer Warn Of Harm To New York If Federal Tax Reforms Eliminate SALT
Governor Cuomo and Senator Schumer reiterated  why they believe there would be serious harm to New York State if federal tax reform proposals make it so residents are no longer able to deduct their state and local income taxes ("SALT") on their federal returns. Among the points they noted:
  • The plan could boost federal income taxes on wealthy New Yorkers, prompting them to leave the state, which would force the state to make up lost revenue by increasing taxes on the less wealthy.
  • Home values could drop by as much as 10% according to a PricewaterhouseCoopers report. 
  • While Republicans say most state taxpayers  would not be hurt by the reduction in the SALT deduction because the federal standard deduction would be nearly doubled for married couples filing jointly, the GOP plan also eliminates the $4,050 personal exemption - which would have the effect of boosting federal taxes for larger families in particular, just because large families would have more members who would lose that exemption. 


Yesterday's 2017 Election Day Wrap-Up
Tuesday was Election Day, and there were several high-profile local races around the state of note: 
  • In the race to fill a vacant State Senate seat in the 26th District (Brooklyn/Queens), Democratic Assemblyman Brian Kavanagh was elected.
County Executive Races:
  • In Westchester, Democratic State Senator George Lattimer defeated incumbent Republican Rob Astorino, who ran unsuccessfully for Governor in 2014 and was rumored to be planning  to do so again next year.  Latimer's victory opens a State Senate seat, leaving the mainline Senate Democratic Conference down two members since Bronx Sen. Ruben Diaz was elected to the NYC Council.  Special elections will have to be called to fill those seats.
  • In Nassau the race was much tighter.
    Democrat Laura Curran declared victory, although Republican Jack Martins had not conceded.
  • In RensselaerGOP Assemblyman Steve McLaughlin has claimed victory, but Democrat Andrea Smyth has not conceded.
Mayoral Races:
  • Incumbent Democrats Bill de Blasio and Kathy Sheehan easily won reelection in New York City and Albany
  • In SyracuseIndependence candidate Ben Walsh defeated Democrat Juanita Perez Williams, winning a five-way race to succeed retiring Mayor Stephanie Minor. Walsh is the first independent elected Mayor of Syracuse in over a century. 
Also, voters statewide overwhelmingly rejected a proposeal to hold a constitutional convention.
. . .And, An Early Look At 2018 
Gubernatorial Race
State Senate GOP Deputy Majority Leader John DeFrancisco (R-Onondaga County) said he will decide whether to run for Governor next year by the end of 2017. The former Senate Finance Committee Chairman added: "I'm not going to run a fool's errand, but...if there's a reasonable opportunity for that nomination, I'm going for it."  DeFrancisco will not run for lieutenant governor on a ticket with any other Republican candidate, who may include businessman and former comptroller candidate Harry Wilson, Dutchess County Executive Marc Molinaro and Assembly Minority Leader Brian Kolb among others. 

Quarles: "Everything Up For A Fresh Look"
New Federal Reserve Vice Chairman/Supervision Randal Quarles said this week "We ought to be taking a fresh look at everything" and that "in a very short period of time" the Fed will be looking at ways to make the regulatory process more transparent. He wants banks subject to Fed stress tests to weigh in on how the exams could be made more transparent. 

ICBA Writes House Ways & Means Re: 
Impact Of Tax Reform On Community Banks
ICBA has written to House Ways & Means Committee Chairman Brady and Ranking Member Neal. The letter spelled out what community banks support, as well as explaining some concerns over provisions in the bill. Among the items ICBA supported: 
  • efforts to craft pro-growth tax reform, provisions of the Tax Cuts and Jobs Act (H.R. 1) 
  • the permanent 20% corporate rate 
  • estate tax relief 
  • repeal of the alternative minimum tax for individuals and corporations 
  • permanent extension of Section 179 
  • not repealing the deduction for business interest, but providing a workable safe harbor that will allow small business to continue to deduct their interest in full.
However, ICBA expressed disappointment that H.R. 1 in its present form:
  • Does not eliminate or curtail taxpayer subsidies to credit unions and Farm Credit System lenders
  • Removes the deduction for FDIC premiums paid banks over $50 billion in assets and phases out the deduction for banks between $10 and $50 billion
  • Applies of the 25% rate to active shareholders in Subchapter S community banks.
Chairman Brady said Republicans plan to bring the bill for a vote next week, and he expects the plan to pass:   Click here to read the full text of ICBA's letter.

In other news, the  Consumer Financial Protection Bureau plans to name Kristen Donoghue, top deputy under outgoing enforcement chief Anthony Alexis, to lead the  Bureau's policing the financial industry.

New York Fed's Dudley To Retire
Federal Reserve Bank of New York President William Dudley will retire in the middle of next null year to ensure that his successor is in place before Dudley's term ends in January 2019. Dudley, who succeeded Timothy Geithner in 2009, will step down before his 10-year term expires in January 2019. His successor will be selected by a committee comprised of members of the New York Fed's Board who are not affiliated with financial institutions, and the Federal Reserve Board in Washington will give final approval. The President of the New York Fed holds a special spot among the dozen regional bank presidents -- serving as vice chairman of the rate-setting Federal Open Market Committee and always voting at policy meetings (other regional Fed presidents have a rotating vote.) After his announcement Dudley strongly cautioned against making broad changes to Dodd-Frank, and urged that any alterations be made "with a paring knife, rather than with a meat cleaver." 
Powell Formally Nominated To Succeed 
Yellen As Fed Chair
President Trump named Federal Reserve Governor Jerome "Jay" Powell as his choice to succeed Janet Yellen as Chairman of the Federal Reserve when her term expires in February.  Powell has been a Fed Governor since 2012. An attorney, he has been an investment banker at Dillon Reed & Co. and a partner at The Carlyle Group, a private equity and asset management firm. He served as Under Secretary of Treasury for Domestic Finance in the first Bush administration. The Senate must confirm his nomination.

News From The FDIC New York Region
FDIC Deputy New York Regional Director John Conneely was appointed regional director for the Chicago Region, effective January 2018. He will complete a temporary assignment in the Division of Risk Management Supervision's Complex Financial Institutions Branch until yearend. New York Regional Director John F. Vogel will serve as acting regional director in Chicago through the end of 2017.  He has served as New York Regional Director since 2012. Marianne Hatheway, deputy regional director for risk management in the Boston Area Office, is serving as acting regional director in New York.

FDIC: Small Banks' Small Business 
Lending "Undercounted"
According to an upcoming survey by the FDIC, small banks are lending to small businesses much more than previously thought.  A survey of more than 1,000 banks with less than $10 billion in assets (and one-and-one follow-up discussions with 51 institutions), the FDIC concluded small-business lending by those institutions was actually undercounted by at least $38 billion in the fourth quarter of 2015. 

Home Prices Up -- Housing Markets (Including NYC's) "Overvalued"
According to CoreLogic, home prices rose 7% nationally in September compared with September 2016. That was a higher annual increase than in August.  As a result, 48% of the nation's top 50 housing markets (including the New York-New Jersey metropolitan area) are now considered "overvalued," up from 46% in August. (For the top 100 markets, 36% were considered overvalued.) 

"Cure The Blue" Building Success Story In New York State, In Banking Industry
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" added Reininga. 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." 

Also throughout September, Labatt Blue had special displays in several Walmart stores throughout the state, including the Buffalo and Watertown areas, highlighting the Cure the Blue initiative. A portion of the sales of specifically marked Labatt sold in the participating Walmart locations helped fund the Cure the Blue program.

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: (716) 907-5500.
We are pleased to announce a new offer available to banks.  Offered through IBANYS' partner at My Wellness Resource is 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 our contact at My Wellness, Alan Justin, who will reach out to you. 
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, 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 

Battle Against Prostate Cancer
Cure the Blue" raises funds and awareness regarding prostate cancer in New York State. Visit curetheblue.com t o 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 in this effort to promote prostate cancer awareness and research. IBANYS partners with the Buffalo Bills Alumni Foundation, which sponsors the program, and urges our member banks to participate. Lake Shore Savings Bank President provided prostate cancer literature and Cure the Blue information at its headquarters in Dunkirk and all eleven of its branches, and also offered" Cure the Blue" ceramic lapel ribbon pins to all customers for a $5.00 donation to Cure the Blue. Lake Shore President & CEO Dan Reininga stated: "We fully understand the severity of this disease and the devastating effect it can have on families. Our support of 'Cure the Blue' initiative is something that we are taking very seriously. We're proud to support it."  IBANYS urges all of our member banks, associate members and allies to join the effort.     

. . .CapitalBase.com LLC
CapitalBase.com LLC is a financial services software company that has provided sales & service technology solutions for investment managers, trust providers, private banks, broker/dealers, insurance reps, commercial lending RMs, corporate bankers, retail platform specialists, tellers and other line units for over 13 years. Their clients see significant gains in operating efficiency, cost reduction, staff productivity, process improvement, referral & retention rates, and employee satisfaction.
Financial Services CRM Includes: 
  • Comprehensive FSI CRM
  • Core Systems Integration
  • Pre-Fills from Core Systems
  • Relationship Management Tools
  • Organization Profiling
  • Relationship Action Planning
  • Communication Plan Metrics
  • Marketing Campaign Management
  • Pipeline Management
  • In-Depth Reporting
  • Business Intelligence Tool
  • Executive & Individual Dashboards
Visit http://www.capitalbase.com, or contact contact: Michael E. Smith: (212) 967-7380, 

. . .That a s part of the 2011 state budget, Governor  Cuomo  and the  New York State Legislature  consolidated the New York State Banking Department and  Insurance Department  to  create the New York State Department of Financial Services? Did you know the New York State Banking Department was created by the New York Legislature on April 15, 1851, and was the oldest bank regulatory agency in the United States?


 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