• Sign Up! Only Two Weeks Until IBANYS' Regional Security Conferences Are October 24 -25 in Rochester & Albany
  • Latest Policy Updates From Albany & Washington, D.C. 

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.


A Quote To Remember. . .
"Community banks represent a strong economic engine that drives growth in New York and their performance is remarkable. Small business is the engine of job growth and most small business loans come not from the big national banks, but from community banks." 

-- Governor Cuomo, announcing the DFS 2013 Community Banking Report


IBANYS' Regional Security Conferences 
In Rochester & Albany

IBANYS will once again host our Regional Security Conferences -- co-sponsored by our preferred partners, Wolf & Company --on Tuesday, October 24 (at the Rochester Airport Marriott) and Wednesday, October 25 (Albany Marriott on Wolf Road). 
Read our brochure for a detailed program agenda and registration information. We have compiled an outstanding slate of speakers who will share their knowledge and expertise on everything security:
  • "State of the Threat Landscape: An Update on the Latest Attacks You Need to Know About"
  • Managing Governance to Reduce Cybersecurity Risk 
  • Incidence Response Tabletop Exercise 
  • Putting Fraud to the Fire
  • Sex, Lies and Mobile Devices: The Seedy Underworld of Mobile [In]security
  • If You Think Cybersecurity is About Compliance, You're Already On Your Way Over the Falls 
You'll hear about the latest attacks, how to reduce risk, a "hands on" interactive session of a cyber breach...and much, much more.  This meeting is especially timely and important in-light of all that has recently occurred.  If you are a compliance officer, HR manager, IT Security, cashier, training officer or branch manager with a New York community bank, you are encouraged to register and attend. 
If you have any questions, please contact Linda Gregware: lindag@ibanys.net, (518) 436-4646

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Join CEIS Review October 17 For Free Webinar 
On CRE Concentration Risk Management

Please join  CEIS Review and  Sageworks for a complimentary webinar on  CRE Concentration Risk Management: Best Practices being presented by CEIS' Managing Director Ms. Elizabeth "Liz" Williams on Tuesday, October 17 at 2:00 p.m. Liz recently presented on this topic at Sageworks' Annual Risk Management Summit in Denver, Colorado to over 300 Bankers in attendance, and the feedback received by the audience was exceptional. To learn more about the webinar and to register, click here.

  • What: CRE Concentration Risk Management: Best Practices
  • When: October 17th, 2:00 PM EST
  • Where: You may register at no cost here 

Mortgage Market Update:
Re-Fi, Purchase Applications Down

The Mortgage Bankers Association reports that total mortgage application volume fell 2.1%  last week. Most of the drop resulted from a continued housing money reduction in refinance activity, but applications to purchase a home also fell.  Refinance applications fell 4% for the week and are down 38% from a year ago. Mortgage applications to purchase a home were essentially flat for the week (down 0.1%) but are still 7% higher than one year ago.  The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less increased to 4.16% from 4.12%, with points decreasing to 0.44 from 0.45, including the origination fee, for 80% loan-to-value ratio loans. 

Who Is The Front Runner 
For Next Federal Reserve Chair?  

Federal Reserve Chair Janet Yellen's term expires early next year, and the White House has been engaged in the process of selecting the next Chair. A number of candidates have been mentioned, including Yellen herself, but F ormer Fed Governor Kevin Warsh (an Albany, New York native pictured above, left) has been seen as a front-runner. Now, there is a report that current Fed Governor Jerome "Jay" Powell (above, right) may have emerged as a compromise candidate. Click here to read an article detailing how " PredictIt" now sees Powell as being in the lead--and, a look at what Fed policy may look like under each of the leading candidates

Meanwhile, the U.S. Senate confirmed Randal Quarles as the first-ever Vice Chairman of Supervision of the Federal Reserve. The position was created by the Dodd-Frank Act, but was never filled until now.

JPMorgan Chase Now Biggest

JPMorgan Chase & Co. has surpassed Bank of America Corp. as the largest U.S. bank by deposits. JPMorgan had $1.31 trillion at the end of June, according to data from the FDIC, accounting for 11% of deposits nationwide. Bank of America had $1.29 trillion. JPMorgan's deposits jumped nearly 8% over the past year, compared with 5.3% for Bank of America's. Meanwhile, according to S&P, the "Big Four" U.S. banks (JPMorgan, Bank of America,  Wells Fargo and Citi) now hold a combined 37% of the country's deposits.The rest of the top 50 banks hold another 35.5%, and the thousands of remaining U.S. banks hold one-quarter of the market.

Fed-CSBS Study: Community Banks' Small 
Business Lending Down 

The   Community Banking in the 21st Century report released by the Federal Reserve and the Conference of State Bank Supervisors last week surveyed more than 600 community banks across the country. It asked professionals at these institutions about their approach to small business
lending. T he report found small business lending at community banks dropped by 2.2% in 2016, down to $269 billion. There was a 5.1% increase in small business lending among large banks with more than $10 billion in assets between 2015 and 2016. The study also found s mall business lending made up a smaller portion of  community banks ' overall portfolios (down from 16.6% in 2015 to 15.9% in 2016) due in part to a surge in commercial real estate lending activity.
According to the Fed, small business lending at surveyed community banks increased at its slowest pace of any other category of loans, while small business lending dropped among all community banks overall.  Community banks face competitive pressure from a number of sides, including big banks and FinTechs, but the Fed's survey noted community banks consider their peer community banks to be the biggest competitive threat.  "With respect to small business lending, survey respondents ... expect increased competition from FinTech firms, as well as from credit unions...This appears particularly inauspicious insofar as the volume of these loans contracted last year across the community banks industry... The fundamental earnings model of community banks may be 'sound,' ... but the role of small business lending within this model appears to be changing," the report concluded.


House Financial Services Committee's 
Reg Relief Markup Is Today

At 10:00 a.m. today, the  House Financial Services Committee was scheduled to hold a mark up of several regulatory relief bills related to ICBA's  "Plan for Prosperity" that ICBA IBANYS supports. Click here to read ICBA's letter to Committee Chairman Hensarling and Ranking Democrat Waters urging a yes vote on several priority bills. The markup will include the following measures:
  • the Home Mortgage Disclosure Adjustment Act (H.R. 2954), which would exempt low-volume community bank mortgage lenders from new HMDA regulations
  • the Bureau of Consumer Financial Protection Examination and Reporting Threshold Act of 2017 (H.R. 3072), which would increase the CFPB's exam threshold from $10 billion to $50 billion in assets
  • the Protecting Consumers' Access to Credit Act of 2017 (H.R. 3299), which would restore the "valid-when-made" doctrine, overturning the Madden v. Midland Funding case
  • the Protecting Advice for Small Savers Act of 2017 (H.R. 3857), which would repeal the Labor Department's fiduciary rule
  • the Community Institution Mortgage Relief Act of 2017 (H.R. 3971), which would exempt from mandatory escrow requirements mortgage loans held in portfolio by financial institutions with assets of $25 billion or less, and increase the small-servicer exemption from 5,000 to 30,000 loans
  • the TAILOR Act of 2017 (H.R. 1116), which would require banking agencies to tailor regulatory actions based on the business model and risk profile of regulated institutions
  • the Clarifying Commercial Real Estate Loans Act (H.R. 2148), which would provide Basel III relief for high-volatility commercial real estate loans, and
  • the Financial Institution Customer Protection Act of 2017 (H.R. 2706), which would curtail abuses like Operation Choke Point.
In Other Federal News: 
  • ICBA called on the FDIC to deny Square Financial Services Inc.'s federal deposit-insurance application, and to impose an immediate two-year moratorium on ILC deposit-insurance applications.
  • The Trump administration is again taking aim at the Dodd-Frank Act, releasing a Treasury Department report last Friday that recommended a vast reworking of Wall Street rules adopted in the 2010 Act. Some of the report's suggestions will require legislative action, but many can simply be adopted as new policies by regulatory agencies. 
  • Four moderate Democrats on the Senate Banking Committee have "strongly encouraged" Chairman Mike Crapo (R-Idaho) to "reach an agreement on a regulatory reform package that can come before the committee" to help strike a bipartisan deal to amend Obama-era financial regulations. 


Budget "Call Letter" Out To Agencies

The annual "Call Letter" from the State Division of Budget Director Mujica has been sent to the various state agencies. As has been the case during Gov. Cuomo's tenure, they are looking at an overall spending growth of 2% , along with flat agency budgets. 

Cuomo: Special Session Would Require 
Agreement  On "Specific Agenda"

Having previously raised the idea of holding a special legislative session to address federal health care funding cuts, Gov. Cuomo has now sent a letter to thirteen state lawmakers in flood-damaged districts offering his support of a special session to spend additional flood relief money. However, Cuomo said there is no point in a special session "unless it is productive" so there would need to be an agreement of both the State Senate and Assembly on a specific agenda.

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 or visit:  http://nbibanys.phecard.com.
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/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!
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."  "Cure the Blue" continues to grow throughout upstate New York. Walmart stores and the Labatt brewery are on board with a major push in the Watertown and Buffalo areas! IBANYS urges all of our member banks, associate members and allies to join the effort.     

. . .BCI Financial Corporation
BCI provides a range of financial services to individuals and other financial institutions. 
  • BCI has a strong commitment to excellent customer service. Our highly qualified staff will assist you with any issues and will work to make your experience a great one.
  • BCI works with dealers in a large network to provide excellent loan products at rates that are competitive in the marketplace.
    BCI works with financial institutions to provide loans and a servicing platform that is state of the art.
Since 1998,  BCI Financial  has provided an easy to use, low risk solution allowing banks to increase their loan to asset ratio, diversify their loan portfolio, and improve their efficiency ratio. BCI offers a Prime Quality Auto Loan Pass Through Program for community banks throughout the Northeast. BCI manages all the loan servicing, collections, compliance and reporting for client banks. For more information, call  (203) 439-9400 or visit  www.bcifinancial.com. 

. . . That the first bank ATM in the United States was established September 2, 1969, just six weeks after Neil Armstrong first walked on the moon? 
Chemical Bank  installed it  at its Rockville Centre, New York branch on Long Island. An experimental predecessor machine known as a  "Bankograph" was installed in  New York City  in 1961 by the  City Bank of New York , but removed after six months due to the lack of customer acceptance. The Bankograph was an automated envelope deposit machine (accepting coins, cash and cheques) but did not have cash dispensing features.


 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