• Register TODAY For Next Week's IBANYS' Regional Security Conferences October 24 -25 in Rochester & Albany
  • Key updates From Albany & Washington, D.C. 
  • Important Information On Identity Theft

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 play a vital role in the functioning of the U.S financial system and the broader economy, from lending to small business owners and farmers, to providing critical banking services in small towns and rural communities..."

-- Statement on the FDIC website

Have You Registered Yet?

IBANYS' Regional Security Conferences Are NEXT WEEK
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).   Are you registered?  If not, there is still time.  We have put together an outstanding slate of speakers who will address everything "Security" so please: Take a moment to review this detailed program and registration brochure .  
With the latest breach at Equifax, and as we learn of the magnitude of the Yahoo breach, this is a timely opportunity to hear from industry experts. 
Please share this information with the appropriate departments in your office. We would like to have all our banks attend this extremely important and timely conference.
We hope to see you in either Rochester or Albany.  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. Q uestions? Please contact Linda Gregware: lindag@ibanys.net, (518) 436-4646

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As we near the end of our fiscal year (October 31), I am pleased to report that IBANYS will successfully achieve our growth goal in membership and revenue, while continuing to upgrade our internal tools' including our new website ( www.ibanys.net), computer  and telephone systems.  We owe our success to the loyalty and support of all our  preferred partners, banks and associate members. I'll have more to say in the following weeks on our 2018 initiatives.

In the meantime, I want to highlight a few things from this week's newsletter. 
  • The last IBANYS conferences of the year are next week's Annual Regional Security Conferences (see information in newsletter above) October 24 - 25 in Rochester and Albany, respectively. Please send this brochure to the appropriate departments within your bank. We need your support for these very important conferences.
  • Please watch the video link to the CNBC segment on identity theft and the high praise for Legal Shield/ID Shield.  It's a very nice piece on one of our associate members.
  • Watch for a webinar announcement soon on the Excelsior Growth Program from the New York Business Development Corporation (NYBDC).
  • Benefit enrollment season is almost here.  Please review the Wellness Resource Center offer included below for your employees.  It is an inexpensive additional benefit for your employees.
  • Please support Cure The Blue. Those who attended our recent annual convention heard former Buffalo Bills great Booker Edgerson speak, and realize that prostate cancer affects many loved ones in our lives.  Please donate to Cure the Blue, or become active in raising money thru different fundraising activities.
Thank you and as always, we appreciated your support!!!


Watch This CNBC Report On Identity Theft Featuring Legal Shield/ID Shield
Legal Shield/ID Shield, an IBANYS associate member, provides powerful benefits, protecting families and business with comprehensive and affordable legal plans, identity theft plans and small business plans. IDShield, a division of LegalShield, provides identity protection to more than a million people in 50 states and four Canadian provinces. Nearly 10 million Americans have their identity stolen every year. No other company combines the expertise of the most knowledgeable identity protection specialists in the industry. 24/7, 365 days a year, their team of dedicated individuals does whatever it takes, for as long as it takes.  In a recent CNBC report, U.S. State Department Senior Advisor Morgan Wright discussed and endorsed Legal Shield/ID Shield for identity protection


New York Ranked 49th In Nation 
In State Tax Climate

The Tax Foundation's annual rankings of states' tax climates is out, and New York ranks 49th out of 50 overall in the country. ( New Jersey is 50th and California 48th.) New York  was ranked: 
  • 49th in individual taxes 
  • 47th in property taxes 
  • 43rd in sales tax
  • 7th in corporate taxes
The Tax Foundation is a  Washington, D.C.-based  think tank, founded in 1937 by a group of businessmen to "monitor the tax and spending policies of government agencies", that collects data and publishes research studies on  U.S. tax policies at both the federal and state levels.Its stated mission is to "improve lives through tax policy research and education that leads to greater economic growth and opportunity."   T he New York State Division of Budget responded, pushing back against the ranking:  "Their obvious ideology aside, the facts are that this administration has been rigorous and effective in constraining State spending growth to the lowest level in modern history - resulting in lower taxes for all New Yorkers. We now have the lowest corporate tax rate since 1968, the lowest manufacturers tax rate since 1917 and, with the new income tax cuts phasing in this year, the lowest middle class tax rates since 1947."

Community Bank Compliance Costs UP
According to a new survey by the Federal Reserve and the Conference of State Bank Supervisors (CSBS), community bank compliance costs have increased by nearly $1 billion in the past two years. Economists at the St. Louis Fed estimate total 2016 compliance costs of $5.4 billion, or 24% of community bank net income -- up from $5 billion in 2015, and $4.5 billion in 2014. The survey of more than 600 community banks incorporates personnel, data-processing, legal, accounting and auditing, and consulting and advisory costs from call reports to develop the cost estimates. It found that the costliest regulations are affiliated with the Bank Secrecy Act and TILA-RESPA, which accounted for 22.3% and 21.2% respectively of respondent banks' compliance expenses. Next came deposit account compliance, qualified mortgage, Community Reinvestment Act, ability-to-repay, non-call report financial reporting, and Basel III capital regulations.

  • The U.S. Labor Department reported that the Consumer Price Index rose 0.5% in September on a 13.1% increase in the gasoline index. Meanwhile, the Commerce Department reported retail sales rose 1.5% last month, and the University of Michigan's index of consumer sentiment reached a 13-year high. 
  • U.S. homebuilding fell to a one-year low in September as Hurricanes Harvey and Irma disrupted the construction of single-family homes in the South.  Housing starts decreased 4.7% to a seasonally adjusted annual rate of 1.127 million units, the Commerce Department reported, the lowest level since September 2016. Single-family homebuilding, the largest share of the housing market, fell 4.6% to a rate of 829,000 units in September. However, single-family starts rose in the Northeast, Midwest and West.

Trump Nearing Choice For Next 
Federal Reserve Chair
President Trump is now reportedly expected to name his nominee for Federal Reserve Chairman before he travels to Asia in early November. The pool of potential nominees include current Fed Chair Janet Yellen, whose term expires in February; White House  chief economic adviser Gary Cohn; former Fed Governor Kevin Warsh, who served as a Fed governor during the financial crisis; current Fed Governor Jerome Powell, and Stanford University economist John Taylor. A recent Reuters poll of 40 economists found that a slim majority expected Powell would be the choice, with the second most likely being Warsh, an Albany New York native. Other reports have Taylor's chances rising, and Warsh's fading. Asked Tuesday if he had a favorite, the President commented: "Honestly, I like 'em all." Meanwhile, the President is also reportedly considering naming Treasury Undersecretary for International Affairs David Malpass to a governor's seat on the Fed board. Also, Randal Quarles took the oath of office as a member of the Federal Reserve board of governors and as the agency's vice chair for supervision. Quarles was confirmed to both positions by the Senate on Oct. 5.

House Financial Service Committee Actions
Last week, the House Financial Services Committee passed, on a bipartisan vote, pro-growth bills inspired by ICBA's  Plan for Prosperity regulatory relief platform endorsed by IBANYS. The ICBA/IBANYS supported measures approved by the committee include the:
  • Home Mortgage Disclosure Adjustment Act (H.R. 2954) to exempt low-volume community bank mortgage lenders from new HMDA data-collection requirements
  • Bureau of Consumer Financial Protection Examination and Reporting Threshold Act of 2017 (H.R. 3072) to increase the CFPB's exam threshold from $10 billion to $50 billion in assets
  • Protecting Advice for Small Savers Act of 2017 (H.R. 3857) to repeal the Labor Department's fiduciary rule
  • Community Institution Mortgage Relief Act of 2017 (H.R. 3971) to exempt from mandatory escrow requirements mortgage loans held in portfolio by financial institutions with assets of $25 billion or less and to increase the small-servicer exemption from 5,000 to 30,000 loans 
  • H.R. 1585 to modify the definition of "accredited investor" by taking into account the individual's education or job experience 
  • TAILOR Act of 2017 (H.R. 1116) to require banking agencies to tailor regulatory actions based on the business model and risk profile of regulated institutions, and
  • Financial Institution Customer Protection Act of 2017 (H.R. 2706) to curtail abuses like Operation Choke Point, which passed 59-1.
In Other Federal News:
  • The Consumer Financial Protection Bureau has updated the small entity compliance guide for its Home Mortgage Disclosure Act (HMDA) final rule. The updates incorporate amendments to the rule from earlier this year, and follow recent revisions to the CFPB's 2018 Institutional Coverage Chart, 2018 Transactional Coverage Chart, and timeline of key dates.  
  • ICBA expressed strong support for Senate legislation that would enhance community bank access to capital to support lending in local communities. The Community Bank Access to Capital Act of 2017 (S. 1962), introduced by Sen. Mike Rounds (R-S.D.) with Sen. Roy Blunt (R-Mo.) as an original co-sponsor, includes several provisions from ICBA's Plan for Prosperity to:
  • exempt community banks with $50 billion or less in assets from the Basel III capital rules,
  • exempt publicly held community banks with less than $1 billion in assets from the Sarbanes-Oxley Act's internal control attestation requirements,
  • raise the consolidated asset threshold under the Federal Reserve's Small Bank Holding Company Policy Statement from $1 billion to $5 billion, and
  • revise the SEC definitions of "accredited" and "non-accredited" investors to attract new investors.


Early Introductions For 2018 
NYS Legislative Session
The 2018 NYS Legislative Session won't convene until January, but there is early activity in Albany in terms of new legislative introductions. A.8705 (Cusick)/S.6845 (Peralta), would require that a notice be posted on all ATMs  warning customers about the use of skimming devices, and informing them how to file claims if they believe they have been victimized. There have also been a few bills introduced pertaining to data breaches.
  • A.8695 (Dinowitz) would prohibit certain fees for security freezes by consumer credit reporting agencies in the case of a breach of information;
  • S.6889 (Carlucci) would require a preliminary notice that a breach has or may have occurred to be sent to the Attorney General within 24 hours, and to all persons potentially effected within 48 hours;
  • S.6890 (Carlucci)/ A.8709 (Fahy) would expand the definition of "personal information"  that, when leaked would constitute a data breach under state law, to include birthdates, home addresses, and phone numbers; and
  • S.6891 (Carlucci) would enact the "Credit Empowerment Act" requiring any person or business in New York to provide any consumer whose personal information they are in possession of with a credit freeze on a credit report, free of charge, upon request.  
IBANYS' Letter To NYS Senate Banks Chairman 
Hamilton Re: Online Lending Task Force
IBANYS has written to NYS Senate Banks Chairman Jesse Hamilton (IDC, Brooklyn) to note our strong  support of his legislation (S. 6593A) to establish a task force on online lending. IBANYS shares Chairman Hamilton's concerns as to the necessity for regulation of interest rates and appropriate disclosure requirements for online loans. IBANYS also asked  that Chairman Hamilton consider recommending Patrick MacKrell, President and CEO of the New York Business Development Corporation (and chief executive officer at the Excelsior Growth Fund) for appointment to the Task Force by the Senate Majority Leader. Click here to read IBANYS letter to Chairman Hamilton.

Cuomo: Ending State & Local Deduction Could Change N.Y.'s Competitiveness "Overnight"
Governor Cuomo again spoke out against the push to end the deduction of state and local taxes, a move expected to impact high-tax states like New York if enacted in Washington. Subsequent proposals have suggested a compromise to cap the deductions, but that could still impact areas like the New York City suburbs, which have a higher cost of living. Cuomo noted: "... what it really is is Washington's attempt to cut taxes in other parts of the country by using New York as a piggy bank and that is something that we cannot allow to happen. It would literally change the competitiveness of this state overnight."  The Governor Cuomo has called on members of the New York Congressional Delegation to oppose eliminating the deduction.

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.     

. . .Promontory Interfinancial Network, LLC
Promontory helps financial institutions of all sizes thrive. Promontory Network members use its solutions  ̶  Bank Assetpoint®, Insured Cash Sweep®, or ICS®, CDARS®, IND®, and Yankee Sweep®  ̶  to source new asset opportunities, diversify their asset portfolios, reduce collateral requirements, purchase funding, and build multi-million-dollar relationships. T o find out how Promontory can help your bank manage its balance sheet more profitably, contact Kevin Hamilton:  khamilton@promnetwork.com , (866) 776-6426 ext. 3329. Or, v isit promnetwork.com. 

. . .That in 2016, an estimated 15.4 million consumers suffered some form of identity theft 
-- up from 13.1 million in 2015. Approximately 1 in 6 Americans were impacted in 2015, and in 2016 that incident rate jumped 16% year over year. 


 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