April 11, 2018

In This Issue: 
  • IBANYS In Washington! Meetings With Key New York Lawmakers On Reg. Relief, Other Priorities
  • Sign The New ICBA Petition!
  • Major Political Shift In State Senate
  • New NYS Senate Banks Committee Chair Is Sen. Elaine Philips
  • News On Upcoming IBANYS Meetings & Upcoming Webinars
  • New Feature: Spotlight Member Bank
  • Follow IBANYS On Facebook, Twitter, LinkedIn and Instagram!

Message From the President
John Witkowski, President & CEO
A Big Week For IBANYS: On Capital Hill In D.C. & At 
Regional Directors Conferences

An Important IBANYS Visit To Washington, D.C.

IBANYS brought a contingent of New York community bankers led by Chairman Mike Briggs (USNY Bank) to Washington, D.C. this week to meet with members of the New York congressional delegation, Senators Schumer and Gillibrand and their top banking staffers. In more than a dozen meetings, we strongly urged House passage of S.2155 "as is" with  no amendments that could complicate, delay and jeopardize the bipartisan support demonstrated in the Senate, where it received 67 votes. We stressed the urgency of finally providing meaningful regulatory relief for community banks in discussions with key Republicans and Democrats on the House Financial Services Committee, including Representatives King, Tenney, Zeldin,  Maloney and Meeks. We also met with senior lawmakers who are well positioned with House Leadership and the Administration, including Reps. Collins, Reed, Stefanik, and with a number of others in the New York delegation. The results were very encouraging. The key challenge is to convince House leadership to move the bill to the floor without revision, and pass it as soon as possible. 

We also discussed Bank Secrecy Act (BSA) modernization, housing finance and GSE reform, the farm bill, BSA modernization issues, taking a stand against expansion of credit union powers and membership fields, and other community banking related issues.   It is important that your Representatives continue to hear directly from you on all these issues. 
  • Click here to read IBANYS' letter to New York House Members. 
  • Click here to access our federal legislative priorities one-page card, and call or email your Represenbtatives. We need you to reinforce what we told them this week. 
  • Also: Sign ICBA's newly announced petition calling for community bank reg relief and, ask your officers, directors, employees and customers to sign too. 
Of course, even with the state budget approved and the Legislature out on recess, Albany was also in the news. We suddenly have a re-unified Senate Democratic conference, which could result in a change of control of the Senate pending special elections this month. We also have a new Senate Banks Committee Chair: Elaine Phillips (R-Nassau County).

IBANYS' Directors Conferences A Big Hit!

This week, we also hosted two regional directors conferences for board members of New York community banks. Speakers and panels discussed issues ranging from top financial trends, backup disaster and recovery response, what directors need to know about ALM; to monitoring and controlling credit risk, strategic partnerships in the mortgage industry, and strategies for incentivizing banks' teams to maximize values.  We also heard updates from the New York Regional Office of the FDIC including from Director John Vogel and his senior team on  current regulatory issues --  including corporate governance matters, consumer protection, and risk management -- and, heard their insight on examination focus for 2018 - 2019. The sessions were extremely well attended, and the program received very positive feedback from participants. Thanks to all our speakers and participants. 
  • Click here to review what the program covered  

One More Thing: Remember These Upcoming IBANYS Meetings!

Remember: IBANYS is YOUR association. Make it work for you!

- John

Follow IBANYS On Social Media!

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2018 Meetings

Regional Human Resources Conferences

Register                              Brochure

April 24, 2018                       April 25, 2018
                                  Hilton Garden Inn                      Hilton Garden Inn
                                 Rochester/Pittsford                               Troy             
                                 800 Pittsford Victor                    235 Hoosick Street
                                Pittsford, NY 14534                       Troy, NY 12180

These programs provide an opportunity for your bank's team to learn about important topics that Human Resource Departments face today. The workplace and regulatory environment are constantly changing. IBANYS has compiled an impressive line-up of speakers who will share their knowledge and expertise on such important and timely topics as sexual harassment, FMLA and PFL, health and wellness, compensation and employee benefits, identity theft, and much more. 

Bank Executive Symposium


            Brochure                               Register                       Sponsorship Form

May 7-9, 2018
Watkins Glen Harbor Hotel
16 N. Franklin Street
Watkins Glen, NY 14891

Lending Conference

Register                              Brochure

June 5-6, 2018
Woodcliff Hotel & Spa
199 Woodcliff Drive
Fairport, NY 14450

Regional Security Conferences


           Hilton Garden Inn                  Hilton Garden Inn 
                                  Rochester/Pittsford                            Troy
                                  800 Pittsford Victor                235 Hoosick Street
                                  Pittsford, NY 14534                  Troy, NY 12180

Annual Convention

September 25-27, 2018
Hilton Albany
40 Lodge Street
Albany, NY 12207

Member banks:   Share this information  with your senior management teams, officers, directors, compliance, security and human resources  officers.  Preferred providers, associate members and business show exhibitors : Now is the time to plan to attend, participate, sponsor/exhibit.  Contact Linda Gregware: Lindag@Ibanys.net 
New Feature!
Spotlight Bank of the Week

Spotlight Bank of the Week is a new feature that we are adding to our website and e-newsletter. It is an opportunity to promote anything about your organization, such as fun facts, organization news, special events, etc. The Spotlight Bank of the Week will be featured on our homepage slider, e-newsletter, and our social media platforms for one week. So don't miss out on this exceptional opportunity to showcase your bank to thousands of people!

To apply, just fill out our registration form and email it to Natalie Rowan at natalier@ibanys.net.

IBANYS Education/Webinars
IBANYS Webinars

IBANYS' webinars provide timely, informative sessions on important topics and issues of interest for community bankers. They are valuable not only for their content, but for their convenience. Participants can take part from the comfort and privacy of their offices, without leaving the bank.
Our  Webinar Series offers many topics in the following categories:
  • Audit & Accounting
  • Collections
  • Compliance
  • Directors
  • Frontline & New Accounts
  • Human Resources
  • Information Technology
  • IRA
  • Lending
  • Operations
  • Security & Fraud
  • Senior Management
We are always adding more programs based on needs and requests of our members,
who drive our focus!  Take a look at the various series of webinars we offer by clicking each of the links below.

Government Relations
Senate Democrats Re-Unite In Effort To Claim Majority

State Senate Democrats have reunited the "regular" party and the breakaway eight member "Independent Democrats" who have aligned with Republicans in recent years to guaramtee a GOP-led Majority coalition in the chamber. There are two special Senate elections scheduled for April 24 in the Bronx to fill vacancies in the  Bronx, and Westchester County. If Democrats win both, the deciding vote as to who would control the Senate would depend on which party with which Brooklyn Democratic Senator Simcha Felder votes. Felder has aligned with the GOP the past few sessions, but it is not clear which way he may be leaning. If Democrats gain control, Sen. Andrea Stewart-Cousins (D-Westchester) would become the first woman to serve as Majority leader, and former IDC leader Jeff Klein (D-Bronx/Westchester) would likely be Deputy Majority Leader. If Republicans keep control, Sen. John Flanagan would retain his leadership position. GOP Deputy Majority Leader John DeFrancisco (R-Syracuse) is a candidate for the GOP gubernatorial nomination.

Flanagan Names Senator Elaine Phillips As New Senate Banks Chair
The reunification of the IDC with regular Democrats ends the majority governing coalition, and GOP Senate Leader John Flanagan )R-L.I.) acted quickly to strip the former IDC senators of their committee chairmanships. That included Senate Banks Chairman Sen. Jesse Hamilton (D-Brooklyn). The newly appointed Senate Banks Chair is Sen. Elaine Phillips (R-Nassau County). She is a former Vice President of Institutional Sales at Goldman Sachs, and was also a financial analyst with Met Life and JP Morgan Securities. She is in her first term representing the seventh S.D.  The NYS Legislature remains out on recess until April 16.

Washington, D.C.

Speaker Ryan Will Not Seek Re-election

The Speaker of the United States House of Representatives, Rep. Paul Ryan of Illinois, announced this morning he will not seek reelection in November. Control of the House is expected to be hotly contested in this year's midterm elections. If the GOP keeps the majority, the leading contenders to succeed Ryan would likely be Majority Leader Kevin McCarthy (R-CA) and Majority Whip Steve Scalise (R-LA). If Democrats win the House, former Speaker and current Minority Leader Nancy Pelosi (D0CA) is expected to be the leading contender.

Sen. Toomey: Time To Push Hard For Meaningful Reg Relief

Speaking at ICBA's Capital Summit on Tuesday, Senate Banking Committee member Patrick Toomey (R-PA) - who chairs the Senate Financial Institutions Subcommittee - encouraged community bankers to push for passage of meaningful regulatory relief. Senator Toomey reiterated S. 2155 would improve mortgage lending, access to capital, the exam environment, and more. He reported that he had helped found a community bank, and experienced regulatory overreach firsthand. He stated that excessive regulation has "destroyed" de novo formation and furthered harmful industry consolidation. Senator Toomey, a potential Senate Banking Committee Chairman in 2019 if Republicans hold control of the Senate this November, said the Senate will continue working to build on the regulatory relief, including by nullifying the CFPB's indirect auto lending guidance using the Congressional Review Act. He also listed "unfinished work" such as on flood insurance and housing-finance reform. He also noted  the Senate Banking Committee will soon advance a measure to repeal the CFPB rule that curbed markups and compensation related to indirect auto loans. 

Other News From D.C.

  • ICBA leaders met this week with President Trump's new National Economic Council Director and Assistant to the President Larry Kudlow, who recently succeeded Gary Cohn in that position. The meeting focused on how to reduce onerous regulatory burdens to improve economic growth and expand access to credit.
  • Comptroller of the Currency Joseph Otting, a former banker, told community bankers gathered at ICBA's Capital Summit this week that community bankers are "dream makers," and expressed support for S.2155, the Senate-passed community bank reg relief bill now in the House, and said sending it to the president's desk would be "monumental."  The Comptroller also said the OCC is working to finalize its position on special-purpose fintech charters, and that any charter would hold fintechs to the same rules and regulations as banks. The OCC will take a stance on the fintech charter in 60-to-90 days. Otting also said the OCC plans to propose Bank Secrecy Act regulatory updates and advance an interagency plan to reform the Community      
      Reinvestment Act, both in the coming weeks.
  • Speaking at the ICBA Capital Summit this week, 
    Consumer Financial Protection Bureau (CFPB) Acting Director Mick Mulvaney encouraged community bankers to educate members of Congress about the industry's concerns. He noted that community banks did not cause the financial crisis, but bear the disproportionate share of the regulatory burden. Mulvaney said he is focused on enforcing the laws as they were written by Congress and going no further. He said the role of CFPB director is too powerful and should not be used to make laws, which is the job of Congress. "We are going to do what the law says...We will not make things up along the way."
  • Federal banking regulators issued a joint statement on what financial institutions should consider when determining whether to use cyber insurance as a component of their risk-management programs. The statement says while the regulators do not require financial institutions to maintain cyber insurance, cyberattacks are increasing in volume and sophistication and might not be effectively covered by traditional insurance policies.

Sign The Petition Today -- Ask Your Customers To Sign It Too!

IBANYS and ICBA are urging urging the House of Representatives to immediately pass substantial community bank regulatory relief. Following the Senate's strong bipartisan passage of S. 2155, community banks now need to continue the momentum so that meaningful relief is not derailed at the last minute. We ask all New York community bank officers, employees and board members to join this important petition drive --  and to enlist customers and community banking allies as well. President Trump has pledged to sign S. 2155 into law, so community banks cannot afford further delay or inaction. IBANYS urges all New York community banks to click here to sign the petition.

Action Alert

Contact Your Local Congressional Representatives: 
Urge Them To Vote For S.2155 Regulatory Relief Bill 

The bipartisan Senate regulatory relief bill (S.2155), has been approved by the U.S. Senate 67 votes affirmative votes. T he action now moves to the House of Representatives. The challenge now is to urge the House to approve the Senate legislation as is, without adding any amendments that would jeopardize the bipartisan support demonstrated in the Senate, where 16 Democrats joined their Republican colleagues in voting for the measure.  IBANYS is conducting a grassroots outreach effort with the New York House delegation. To email or call your Representatives, click on the links below:

We have written to each member, but we need YOU to contact your local Representatives. Call their district offices while they are home for the two-week recess beginning this weekend. You can also visit www.icba.org and use their "Be Heard" grassroots site to tailor your messages.

Industry Trends & Updates
  Latest Trends On The Deficit, Consumer Prices & Retirement Savings
  • According to new projections from the nonpartisan Congressional Budget Office (CBO), the federal government's annual budget deficit is set to widen significantly in the next few years, and is expected to top $1 trillion in 2020 despite healthy economic growth. The national debt has exceeded $21 trillion, and will exceed $33 trillion in 2028, according to the forecast, which is the first by the CBO since President Trump signed a sweeping tax overhaul as well as legislation to significantly increase military and domestic spending over the next two years.
  • The U.S. Labor Department reported this morning that  its Consumer Price Index slipped 0.1 percent last month, the first (and largest) drop since May 2017, after climbing 0.2 percent in February.  
  • For the third year in a row, GOBankingRates surveyed adults across the U.S. to find out how much the average person has saved for retirement. From 2016 to 2017, the  percentage of Americans with $0 saved increased . But this year, it dropped dramatically. Not only has the percentage of adults with nothing saved fallen, but the percentage of those with $300,000 or more in a retirement nest egg has increased.  Although the 2018 Retirement Savings survey found that 42 percent of Americans might retire broke, that percentage has shrunk from years past. The 2017 Retirement Savings survey found that 55 percent of adults had less than $10,000 in savings. The  2016 Retirement Savings survey  found that 56 percent of Americans had less than $10,000 saved.  
Banking News
Online Lending

Excelsior Growth Fund (EGF) is NYBDC's nonprofit Community Development Financial Institution and IBANYS' exclusive online lending partner. Their  mission is to help businesses in New York, New Jersey and Pennsylvania grow by providing small business loans and advisory services. As a nonprofit organization and a U.S. Treasury-certified Community Development Financial Institution  (CDFI) , they're a responsible lender you can trust. Their  products are affordable and flexible, and their advisory services can help you reach your business goals. Their signature product, the EGF SmartLoan™, provides up to $100,000 through a streamlined online platform.  Loans are approved in 1-2 days and funded in a week.  For more details, please visit: http://excelsiorgrowthfund.org/egf_smartloan/ 

Spotlight Bank of the Week

USNY Bank is an independently-owned, commercial bank chartered by New York State and headquartered in Geneva, NY. The bank operates two full-service banking units. Bank of the Finger Lakes with offices at 389 Hamilton Street in Geneva, NY and 100 Main Street in Penn Yan, NY and Bank of Cooperstown with offices at 73 Chestnut Street in Cooperstown, NY and 34 Main Street in Oneonta, NY. USNY Bank currently has total assets of approximately $380 million.

Geneva, NY location
The idea to form a new bank in Cooperstown began with the family of Robert O'Neill in early 2006. O'Neill contacted the late Robert Ranger and Mike Briggs, current USNY President & CEO, to become the original founders of the de novo bank. O'Neill and Ranger were both honored as Director Emeritus for their efforts on behalf of the bank.

Oneonta, NY location
The original bank charter was approved in March 2007 and the bank received FDIC approval to open its first branch in Geneva. The Cooperstown branch opened in December 2007, the Oneonta branch in September 2014, and the fourth branch opened in Penn Yan in June 2017. Upstate New York Bancorp, Inc. was created on July 1, 2016 as the holding company for USNY Bank. 

The Bank is both an SBA Preferred Lender and FSA Preferred Lender, specializing in providing banking services for small and mid-sized businesses, agribusinesses, farms and wineries; in addition to providing retail lending services to local consumers.

Penn Yan, NY location
USNY Bank has received recognition for its financial performance by various bank industry firms. The bank has experienced consistent growth in total assets and net income since its inception. 

President & CEO Mike Briggs added, "We're very pleased to have been listed among the top performing banks in the country. This just didn't happen. It's a testament to the high-quality customer service consistently delivered by our employees; the commitment of our directors, community board members and management; the investment by our shareholders; plus the loyalty of our bank customers. USNY Bank remains committed to reinvesting local deposits back into the communities we serve. We're here to serve our customers and make positive contributions to the local economy. We make loans that help support local businesses and farms to help them grow. And that supports helps everyone. It's what we mean when we say What Starts Here, Stays Here. When people bank with us, they know that the money stays right here."

Briggs is also the current Chairman of IBANYS, Atlantic Community Bankers Bank, and Atlantic Community Bancshares, Inc.

For more information, please visit www.usnybank.com.
IBANYS Spotlight Is On...
Harland Clarke is a leading provider of quality payment solutions, multi-channel marketing campaigns, and secure data-driven lead generation and critical communications.  In addition, Harland Clarke provides promotional products, call centers, and governance, risk and compliance (GRC) solutions. The company delivers operational excellence and intelligent solutions to more than 43 million consumers and 6 million small and medium sized businesses per year through its relationships with more than 11,000 of the nation's leading financial institutions, large retailers, affiliate marketing companies and accounting software providers. Harland Clarke is a wholly owned subsidiary of Harland Clarke Holdings

For more information, please contact: 
Shawna.Miller@HarlandClarke.com, (585) 317-6622
Gina.Kurdi@harlandclarke.com, (845) 462-5167
Or, visit www.harlandclarke.com.

IBANYS Endorsed Services

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

My Wellness Resource & TELADOC

The health and wellness landscape continues to evolve. "My Wellness Resource" can be a nice addition to your existing benefit package. 

Teladoc can save your banks time and money, and provide real value to your employees as this testimonial from a New York community bank CEO proves:
"I wanted to let you know that some of our employees and I have been using "Teladoc" and it is one of the best things we have done for the bank. We all love it: We are saving time, avoiding waiting in an urgent care center or a doctor's waiting room for non-emergency related illnesses . . .and it is easy to use and convenient. Once you use it, you are hooked! This was a great find! Would recommend it to all banks."

Mario Martinez 
Chairman & CEO
Catskill Hudson Bank

Contact Alan Justin: (716) 907-5500. 

"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.  Lake Shore Savings Bank has 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, there were an estimated 161,000 new cases, and more than 26,000 fatalities due to the disease. Support IBANYS' "Cure the Blue" campaign to help New Yorkers participate to promote prostate cancer awareness and research.

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 

Did You Know?

. . . That the first New Yorker to serve as the Speaker of the U.S. House of Representatives was John W. Taylor. He was Speaker from November 1820 - March 1821, and again from December 1825 - March 1827. He   was born in 1784 in the Town of  Ballston  (then in  Albany County), served in the House for 20 years and then, upon his retirement, served in the New York State Senate for two terms. The only other New Yorker to serve as Speaker wasTheodore Pomeroy, who served for just  two days (March 3 - 4, 1869)

New York community banks play a key role in our state and local economies. Help spread the good news among our customers, business, elected leaders and the media!

John J. Witkowski
President & Chief Executive Officer

Stephen W. Rice
Director of Government Relations & Communications

Linda Gregware
Director of Administration & Membership Services

William Y. Crowell III
Legislative Counsel

Natalie Rowan
Marketing & Social Media Assistant
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