April 24, 2019

In This Issue: 
Message From the President

Next week's newsletter will be published on Thursday, May 2 so we may include coverage of IBANYS activities in Washington, D.C.  

Next week, IBANYS will lead a group of New York community banking executives to Washington, D.C. to attend the ICBA Capital Summit.  The highlight of the Summit is the opportunity for us to meet with the members of the New York congressional delegation and/or their senior legislative staff in their offices on capitol hill. 
  • IBANYS will co-host a Welcome Dinner & Briefing on Monday evening at 6:00 p.m., co-hosted by preferred partner Luse Gorman, P.C. and The Bonadio Group, in the Pure Bar & Bistro Restaurant in the lower level of the Grand Hyatt, to discuss the issues, agenda, and network with peers.
  • All meetings will take place on Tuesday. April 30. IBANYS will be meeting in the offices of both our U.S. Senators (Sen. Schumer and Sen. Gillibrand), in addition to various key members of the House Financial Services Committee, new members of our congressional delegation, and other noteworthy Representatives. 
  • Participate in legislative and regulatory briefings on important issues impacting community banks. Furthermore, hear directly from U.S. Senate Banking Committee Chairman Mike Crapo and FDIC Chairwoman Jelena McWilliams,

IBANYS encourages you to come to Washington next week as it is extremely important for our elected officials to hear directly from New York community bankers . Your voice is essential to demonstrate a presence for community banking. If you are unable to attend the full length of the ICBA Capital Summit, please consider joining us for one event such as the Monday night dinner to the Tuesday congressional meetings.  

At a minimum, join us for our Monday night dinner and Tuesday congressional meetings.


IBANYS Members: Have You Made Your Nominations Yet?   
  • ICBA is accepting nominations for the 2019 ICBA National Community Bank Service Awards, sponsored by FIS. The annual awards recognize community banks that provide outstanding, hands-on volunteer community service efforts to their local communities. Nominations close April 30. 
  • ICBA's Independent Banker magazine is recognizing member banks that are embracing new technologies, fintech partnerships and sheer creativity for the betterment of their customers and businesses. To nominate your community bank: Outline the details of your strategy or solution and its benefits in not more than 1,000 words. Nominations close April 26. Visit www.icba.org for details. 

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2019 Meetings

Get Ready For 2019 Annual Convention!Convention19




June 10-12, 2019


5218 Patrick Rd, Verona, NY 13478

                                    Brochure                    Registration Form


Attend One of Our Educational Meetings! Meetings2019

Our 2019 Meeting dates and locations are now available! These educational conferences cover various subjects that are important within the community banking industry, spoken by the experts. T hey are also a great opportunity to network and earn CPE credits. Here is what we have planned for 2019:

                           May 7, 2019                                         May 8, 2019
                 RIT Inn & Conference Center                     Hampton Inn Poughkeepsie
                      5257 W. Henrietta Road                                   2361 South Rd.
                         Henrietta, NY 14467                              Poughkeepsie, NY 12601

                           View Brochure                              View Registration Form

CPE Credits Available  = 7



Co-Sponsored By:

May 21-22, 2019
16 North Franklin Street
Watkins Glen, NY 14891

            View Brochure                              View Registration Form

CPE Credits Available  = 10


Banking Executive SymposiumBankExecSymposium

September 9-11, 2019
200 Riverside Drive
Clayton, NY 13624

CPE Credits Available  = TBD


Have an idea for one of our meetings? Want to see a meeting or forum on a different subject? We want to hear from you! 
Contact Linda Gregware or John Witkowski with your thoughts and/or comments.

IBANYS Education/WebinarsWebinars

The 2019 Webinar is now available! The Independent Bankers Association of NYS (IBANYS) partners with CBWN to bring you more than 150 webinars each year covering compliance, lending, regulations, security, operations, new accounts, collections, fraud, security and other topics. Even better, each time you purchase a webinar, you support IBANYS, because a portion of your registration comes directly to us. Thank you!  

You can view the 2019 Webinar Schedule here or by category here. In addition, CBWN has made some recent updates to provide better service to its consumers. Unfortunately, some changes may have caused you to miss important webinar announcements. Please read the IBANYS letter to view the updates and ensure that you do not miss another webinar.


CBWN has added more than 140 webinars to the IBANYS webinar calendar, covering all the essential topics. Start the new year off right by gaining the knowledge and tools to make 2019 the best year yet! 

CBWN and IBANYS thank you for your continued support of the education in the community banking industry. 

Government Relations


2019 Legislative Session Begins Final Stretch Next Week

The State Legislature will return to Albany next week after its April recess. There will be just 26 scheduled session days until the anticipated June 19 adjournment. Legislative committees are gearing up for the final push.

DiNapoli: State Tax Revenues Down - PIT To Blame

Thomas DiNapoli
New York State Comptroller Thomas DiNapoli reported that 
state tax revenues fell by $3.7 billion (4.7%) last year - the most significant decline since the 9/11 attacks. The primary reason: a 6.6% decrease in personal income tax revenues, which came in at $48.1 billion - $3.4 billion less than the previous year. DiNapoli noted  it could have been even worse, but a surge in collections in March helped avoid an even larger drop. He stated:  "After months of concern over lower-than-expected tax collections, the state ended the fiscal year on a positive note. . .The sharp revenue declines in December and January, however, remind us to take nothing for granted. With expectations of a slowing economy and ongoing concerns regarding federal fiscal policies, a strong commitment to building robust reserves in preparation for the next economic slump is essential." 

The Comptroller's office cited the cap on State and Local Tax deductions under the federal tax reform bill of 2017. Business-related tax collection revenues were comparatively robust last year. Consumption and use taxes rose to $17.4 billion, up $645 million, or 3.9%, from the previous year. Business tax receipts were up $7.9 billion, an increase of 10.4%. Total spending rose 4.4% to $170.9 billion.

Washington, D.C.WashingtonGR

Congress Still Out On Recess - But House Financial Services Committee  Hearings Are Set

Congress remains adjourned this week, but will return to Washington next week. The House Financial Services Committee has released an updated hearing schedule for the coming weeks, with hearings scheduled for next week on housing infrastructure, small-dollar lending, auto lending and diversity. The week of May 6, the Committee has scheduled a markup and hearings on minority homeownership, worker protections, regulating the largest banks, and overseeing HUD.

Cain Out As Fed Nominee; Moore Has Problems Too

Herman Cain (left) & Stephen Moore (right)

Herman Cain has asked the President not to be nominate him for a seat on the Federal Reserve Board. The President had recommended Cain to serve earlier this month, pending a background check by White House staff.  Cain, a businessman and former Kansas City Fed chairman who unsuccessfully ran for president in 2012, has drawn Senate opposition to his nomination. Four GOP senators planned to vote "no" on his potential nomination, as concerns were raised about his lack of experience for the job and previous allegations of sexual harassment and misconduct. The President has  said he plans to nominate the Heritage Foundation's Stephen Moore to fill the other open Fed seat, but Moore is facing his own political pushback over controversial columns he wrote in the past for the National Review.  National Economic Council Director Larry Kudlow has said the White House continues to interview other potential candidates for the Fed.

HUD Adds New Requirements Re: FHA Mortgages

The Department of Housing and Urban Development (HUD) added new documentation requirements to verify that government entities offering down payment assistance for mortgages backed by the Federal Housing Administration (FHA) are doing so within "governmental capacity." 

HUD pointed to the increasing risk of defaults linked to loans with down payment assistance as one of the reasons for the move.  HUD said lenders must document that all portions of a borrower's minimum required investment are from permissible sources. 

Latest On CFPB: Public Complaints Reviews To Continue;
ICBA Weighs In On Small Business Data Collection  

  • Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger will continue with reviews of its public complaints database and how the Bureau enforces discriminatory lending laws. The reviews were begun by her predecessor Mick Mulvaney. Kraninger said the agency was discussing how the public complaints database, a key source of the bureau's investigations, should operate.
  • In a letter to CFPB Director Kraninger, ICBA urged the Bureau to identify potential benefits and burdens before rules are promulgated, including forthcoming rules on small-business data collection. ICBA has concerns the negative impact of Section 1071 of the Dodd-Frank Act would commoditize small-business loans and disrupt lending. While the consumer protection law requires the CFPB to implement rules for the collection and reporting of data on financial institutions' small-business lending, ICBA believes it is inconsistent with the non-homogenous nature of small-business loans. 
  • Sen. Sherrod Brown (D-OH), Ranking Democrat on the Senate Banking Committee, wrote to Federal Deposit Insurance Corp. Chairman Jelena McWilliams to state that the FDIC must have a "full five-member" board in place to consider the proposed merger between BB&T and SunTrust, and that the "merger cannot be approved until internal directors of the FDIC are nominated and confirmed."

Industry Trends & Updates

Ensure Profitable Growth With Vetter GrowthVetterProfitableGrowth

V etter is constantly evolving their products and searching for new ways to innovate and offer your CFI the most current and relevant tools. This month, Vetter Founder & CEO Bryan Adler would like to share the latest version of one of their products: Vetter Growth. Check out their demo video, and learn why Vetter Growth is a key tool when it comes to ensuring profitable growth. 

Meanwhile, a  reminder: Bryan Adler will address IBANYS' Annual Convention on June 12, 2019 at the Turning Stone in Verona, New York on  "Acquiring Millennial Customers: Not As Hard As You Think." 


Study Finds Federal Tax Overhaul Helps Wealthy GOP States 
More Than  Wealthy Dem States

According to a study by the Federal Reserve Bank of Atlanta, University of California, Berkeley and Boston University, the 2017 tax overhaul will benefit wealthy households in Republican states more than the same households in Democratic states - partially because of the new $10,000 cap on state and local tax deductions. 

The "richest" 10% of households in GOP states are expected to see a 2% increase in remaining lifetime spending, compared to a 1.2% increase for "rich" households in Democratic states.


Will 5G High Speed Technology Mean New Advancements For Banks?Banks5G

The recent rollout of 5G high-speed network technology by Verizon and AT&T has bank innovation officers excited, according to an article in The American Banker. "5G will begin to unlock some interesting things that we've dreamt about or imagined for some time," said Dominic Venturo, chief innovation officer at U.S. Bank. "5G is exponentially more powerful than 4G; it has such low latency and such high bandwidth that for a lot of applications, it will make a lot of sense to use 5G instead of Wi-Fi." 

According to some of the experts quoted in the article, 5G could also enable new uses for artificial intelligence. For instance, machine learning can now be embedded in browser code, so a customer does not have to download an app. Another use for 5G in customer service is real-time language  translation that could be embedded in an application on a phone, tablet or PC, or kiosk.


As April's"Community Banking Month" Draws To A CloseCommunityBankingMonth

Community banks continue to expand and innovate to meet the needs of consumers and local communities - whether rural, suburban or urban. In honor of  ICBA Community Banking Month in April, the Independent Community Bankers of America (ICBA) is shining a spotlight on the nation's community banks and their role in fostering local economic prosperity.  "As local small businesses themselves, community banks only thrive when their customers and communities flourish," ICBA President and CEO Rebeca Romero Rainey said.  Follow the ICBA Community Banking Month conversation on social media with #BankLocally.


Community Banks & Small Businesses Remain A Great Match

According to the latest credit survey from the 12 Federal Reserve Banks, s mall-business loan applicants continued to be more satisfied with community banks than any other type of lender
  • 79% of applicants were satisfied with community banks, compared with scores of 67%  for large banks and 49% for online lenders. 
  • Only 6% of community bank applicants said they were dissatisfied, compared with 11% for large banks and 16%  for online lenders.
Community banks scored well on credit decision-making, transparency, interest rates and repayment terms. However, borrowers did report significant problems with online lender rates and terms. Satisfaction with community banks has held steady in recent years, while the online lender score declined six points following a gain the previous year. Yet,  the share of loan applicants increased at online lenders from 24% to 32 %, and declined at community banks, from 47% to 44%. Approval rates have progressively risen at online lenders while holding steady at other entities.


First Quarter Call Reports Are Due Tuesday, April 30

Call reports for the March 31 report date are due to the regulatory agencies' Central Data Repository by Tuesday, April 30. This quarter's call report includes revisions that primarily address new accounting standards for credit losses, which are being phased in between March 31, 2019, and Dec. 31, 2022. Institutions with less than $1 billion in assets as of June 30, 2018, may file the FFIEC 051 or FFIEC 041 report.

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FDIC Seminars On Deposit Insurance Coverage

The FDIC will conduct four identical live seminars on FDIC deposit insurance coverage for bank employees and bank officers between May 15 and Dec. 9. In addition to a comprehensive overview of FDIC deposit insurance rules, the seminars will cover signature card requirements for joint accounts, prepaid cards, bank trade names, health savings accounts, and 529 accounts. The seminars are free, but advance registration is required.

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The Economy By The Numbers

  • According to the National Association of Realtors,existing-home sales declined in March following a surge in February. Sales of existing homes (which comprise roughly 90% of U.S. home sales,) decreased 4.9% last month and were down 5.4% from a year ago. Housing inventories increased from 1.63 million to 1.68 million, with further increases needed to keep home prices in check. 
  • According to the U.S. Commerce Department, housing starts declined 0.3% in March, and were down 14.2% from the same time a year ago. Single-family starts were down 0.4%, and building permits were down 1.7% from the previous month and 7.8% from a year ago. Housing starts fell in the Northeast, Midwest and South, but they surged in the West. The construction data can be volatile, so the regional levels of homebuilding can change sharply on a monthly basis.
  • Retail sales jumped 1.6 percent in March, the largest monthly gain since September 2017, the Commerce Department said. Sales were up 3.6 percent from a year ago following a 0.2 percent increase in February, indicating continued economic strength.
  • Purchases of new homes in the U.S. increased in March, driven by sales gains in most parts of the nation. Purchases of newly built single-family homes-a relatively narrow slice of all U.S. home sales-rose 4.5% to a seasonally adjusted annual rate of 692,000 in March, Tuesday. 
  • The U.S. Commerce Department said the Federal Reserve's benchmark interest rate has inched up to its highest level in 11 years, even though the Fed has sent signaled it is done tightening policy indefinitely. The effective fed funds rate, which targets the overnight level that banks charge each other for loans, has now moved up to 2.44%.

Vining Sparks & ICBA Securities Balance Sheet Academy BalanceSheetAcademy

Registration is now open for Vining Sparks and ICBA Securities' Balance Sheet Academy seminar in Memphis, Tennessee from Monday, April 29 to Tuesday, April 30 2019. This  advanced seminar is designed to expose seasoned community bank portfolio and balance sheet managers to advanced products and concepts.  The objective is to enable the attendees to consistently outperform their peers. The dynamics of a community bank balance sheet require an investment professional to be versed in a wide range of topics.  Balance Sheet Academy  provides discussion and practical classroom exercises to equip the attendees for these demands. Examples of these topics include: 
  • Advanced interest rate risk management strategies;
  • Low cost funding strategies; and
  • Strategies for serving bank customers while managing interest rate risk.  
Attendees will learn how the changing economic data impacts market interest rates from Vining Sparks' Chief Economist. The Balance Sheet Academy is structured for more experienced investment managers, particularly those who have attended Bond Academy.  
It incorporates balance sheet strategies into the day-to-day management of an institution's investment portfolio, wholesale funding and interest rate risk management. Bank personnel with an intermediate level of understanding of investments who are integral to the investment and balance sheet management process will benefit the most from this advanced course. New directors serving on the investment or asset-liability committee will also find this course beneficial. 

Contact:  Kert Johnson,  SVP/Marketing at (901) 762-5340 or kjohnson@viningsparks.com.

Banking News

Further Your Education at Barret Graduate School of Banking BarretGradSchool

Barret and IBANYS are aligned with a common interest: to represent the interests of the industry through effective advocacy and high quality educational offerings.

Located in Memphis, TN, Barret Graduate School of Banking offers a comprehensive graduate learning program for professionals in the financial services field. IBANYS has established partnerships with key industry educators including the Barret Graduate School of Banking. The school provides community bankers with an opportunity for a graduate degree in banking. 

We are currently endorsed by ICBA, ICBA Securities, Arkansas Community Bankers, CBAofGA, Indiana Bankers Association, CBAofKS, MIBA, CBAofOH, CBAofWV - with a couple more on the way. 

To learn more about Barret Graduate School of Banking, please visit   www.barret.ws.


Keep The Door Open For Your Small Business Customers

Excelsior Growth Fund (EGF) is NYBDC's nonprofit Community Development Financial Institution and IBANYS' exclusive online lending partner. Join the growing number of banks that work with EGF to offer their customers an affordable and responsible option when they do not qualify for traditional financing. EGF offers loans up to $500,000 with a convenient, digital process. Loans under $100,000 are disbursed within 5 business days.

 EGF's experienced team can work hand-in-hand with yours to develop a customized process to make referring seamless. To learn more about offering your customers a second look through EGF contact Bryan Doxford, SVP, at bryan.doxford@excelsiorgrowthfund.org at at (212) 430-4512.

Spotlight Bank of the WeekSpotlightBank

Generations Bank traces its heritage back to 1870, since that time we have been serving the financial needs of people and businesses across the Finger Lakes region. In addition to being a full service bank, Generations Agency provides insurance services to families and businesses. We employ a unique blend of traditional service and technology to deliver an experience available when, where and how the customer wants to do their banking.

Our products and services often go beyond what you might expect. For example, our MyGenMortgage is specifically designed to help enable home ownership in our communities. The GO PREMIUM and GO PREFERRED checking accounts offer extra benefits to customers by delivering value added features like ID Theft Aid / Credit Monitoring, Roadside Assistance, Cell Phone Protection and EZ Saver account rounding at no additional cost. GO PREMIUM and GO PREFERRED customers also have access to discounts at retailers, shops and restaurants locally and nationally.

Generations believes it is important to give back to the communities where we work and live, we support many local causes and charities with special emphasis on affordable housing and benefitting children. In addition to financial support, bank employees donate their time to charitable causes with more than 62% participating.

Headquartered in Seneca Falls, one of our neighbors is the National Women's Hall of Fame. For the past three years, the Bank has been the organizing sponsor of the "Right to Run" 19k - celebrating the women's movement. The race's unusual distance - 19 kilometers, is a nod to the 19th Amendment whereby women secured the right to vote. Proceeds from the event support the Women's Hall of Fame.

Generations also hosts "Tastes and Tunes" an annual event featuring Finger Lakes wineries, breweries, food and music. The event supports local food banks and charities that fight hunger in our community.

The Bank also takes pride in being named one of Central New York's "Best Places to Work" each of the last four years.

As Generations continues to grow, we never lose focus on opportunities to strengthen our communities - through the products and services we offer as well as corporate involvement.

To learn more about Generations Bank, please visit www.mygenbank.com.


About Spotlight Bank of the Week

Spotlight Bank of the Week is a new feature that we have added 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!

View banks that have been featured as our Spotlight in the past!

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

IBANYS Spotlight Is On...

The Kafafian Group  is a finance, strategy, and operations consulting firm specializing in performance management, profitability outsourcing, strategic and business planning, regulatory assistance, profit/process improvement, board and management advisory services, and investment banking advisory services. 

Their  seasoned industry professionals dedicated to helping banks perform better by delivering meaningful management information and analysis, identifying operating efficiencies and evaluating strategic alternatives. They offer a wide range of advisory services to help you develop winning strategies, and provide reliable information to make smart and informed decisions.

Over the past 30 years, they have worked with over 500 financial institutions in over 40 states ranging in asset size from $16 million to over $100 billion.  The Kafafian Group is committed to sharing their expertise with the industry. They encourage you to subscribe to  TKG Perspectives , their quarterly publication and  listen to their podcasts.

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?

. . . How the term "lobbyist" originated? 

One legend is it began at the Willard Hotel  in Washington, DC, where it was supposedly used by  President Ulysses S. Grant  to describe the political advocates who frequented the hotel's lobby to access him (he was reportedly often there in the evenings to enjoy a cigar and brandy) and the "lobbyists" would try to buy the president drinks in an attempt to influence his political decisions. 

. . .However, while  the term gained widespread use during Grant's Administration , it apparently originated in British Parliament, and referred to the lobbies outside the chambers where wheeling and dealing took place.

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