July 11, 2018

In This Issue: 
Message From the President

John Witkowski, President & CEO
IBANYS' Summer: Getting Ready! 

Summer is about hot days, good times, vacation time and friends and family. Here at IBANYS, it's also about preparation. We're getting ready for: 

  • Our Board of Directors Meeting July 23
  • Our upcoming 2018 Annual Convention (the signature conference of our Association year) 
  • The 2018 state legislative and statewide office primaries in September, and the November general election that will elect a new legislature, congressional delegation, Governor, Lt. Governor, Attorney General and Comptroller. 
  • The 2018 legislative and congressional sessions, which could be held in a very different political landscape.
There's a lot going on as we enjoy the summer, and lay the groundwork for a very busy and important autumn.

I want to remind our member banks, preferred partners and associate members to act early to register for the convention, and to sign up to sponsor and/or exhibit at our highly successful trade show. Watch your email, mail and IBANYS' website for the complete details on the silent auction, six -minute drills and registration  information! 

-- John

P.S. IBANYS' 2018 Annual Convention & Trade Show is September 25 - 27 in Albany at the Hilton Albany.  Hotel information is now available, and more details will be released soon! New York State Financial Services Superintendent Maria Vullo -- the industry's top state regulator -- will speak Wednesday, September 26.

As always, thank you for your support of IBANYS and all you do or community banking.

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

- John
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2018 Meetings

                                                      2018 IBANYS Annual ConventionConvention1

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

                    Hotel Information
A block of rooms has been reserved at the Hilton Albany. Reservations can be made by the following: 

Arrival Date:
 September 25, 2018
Departure Date:  September 27, 2018

           Price of Rooms & Exclusive Deals                    Refer to Group Code:  1IBANY

                      Web:  Click Here                                             Phone:   1-866-691-1183

*More Convention information will be released soon, so watch your emails, Facebook, Twitter, Instagram,& LinkedIn!

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  

Convention Update: DFS Superintendent Vullo To Speak 

New York State Department of Financial Services Superintendent Maria Vullo will address IBANYS' Annual Convention as our luncheon speaker on Wednesday, September 26.
  The Banking Division of DFS supervises -- through chartering, licensing, registering, and examining safety & soundness, among other actions -- nearly 1,900 banking and other financial institutions with assets of more than $2.9 trillion. The division is composed of the following groups: Foreign & Wholesale Banks, Community Banks & Regional Banks, Licensed Financial Services, and Mortgage Banking.

Become a Sponsor or Exhibitor!SponsorExhibitor

Demonstrate your support for community banking by becoming a sponsor or exhibitor at our Annual Convention! Our Convention Trade Show provides the opportunity for exhibitors to discuss their products and services to attendees, while becoming a sponsor gives your organization the chance to show its continuing support for community banking in New York.
These two important opportunities that will put you front and center in terms of creating a presence for your firm and providing an opportunity to network with the industry's leadership.
You can view the Sponsorship form, as well as the Exhibitor form, for all information and details.  Please take a moment to carefully review, and act soon to secure both your exhibitor booth location for the trade show and the event/activity you wish to sponsor.

Please note: Both will be assigned on a first come, first served basis.
As always, thank you for your support and participation.

New Feature!
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!

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

IBANYS Education/Webinars
IBANYS Webinars

Are you participating in IBANYS' webinars? Your peers are! They provide timely, important information on subjects of interest to New York community bankers. They are valuable not only for their content, but for their convenience. Take part from the comfort and privacy of your office, 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.



What the New Law Means for Banks
Thanks to the newly signed regulatory relief bill, most reciprocal deposits are no longer brokered. This comes as banks face intense and increasing competition for deposits.

Join Us for a Webinar
Join Promontory Interfinancial Network-- the nation's leading provider and inventor of reciprocal deposit placement services-- for a free webinar that outlines key provisions of the new law and the impact ICS®, or Insured Cash Sweep®, and CDARS® can have on banks' balance sheets. The webinar will also cover how banks can use ICS and CDARS to capitalize on the opportunities at hand; presenters will discuss cost-effective ways to use the services to attract high-value relationships (even as deposit competition intensifies) and to lock-in more low-cost funding (even as interest rates continue to rise.) This webinar is a "must" for decision-makers at banks of all sizes, especially for community banks that utilize collateralized deposits and/or listing services.

Choose a date and time that works for you!

Government Relations
new york state capitol

Some Dissension In State Senate Dems' Ranks?

State Sen. Michael Gianaris (D-Queens)
State Sen. Michael Gianaris (D-Queens), who chairs the State Senate Democrats' campaign efforts, will not endorse any of the eight former members of the Independent Democratic Conference (IDC). IDC has been a part of a governing coalition with Republicans for several years but returned to the regular Democratic fold earlier this year. Gianaris did not rule out backing their challengers in September primaries. As part of the reunification agreement, Senate Dems agreed not to fund any challenges against the breakaway senators, and Senate Democratic Leader Andrea Stewart-Cousins went even further and endorsed the eight former IDC members. Democrats have 32 elected senators to Republicans' 31, although one Democrat voted with the GOP to allow them to retain control. Five incumbent GOP senators are not seeking reelection, and control of the Senate will be very much up for grabs this November.

Court Overturns DFS Rules On Title Insurance Gifts

Last spring, the New York State DFS announced a set of rules that, among other things, prohibited title insurance firms from giving gifts or meals to real estate brokers, banks and other professionals who refer home buyers to a particular title insurer. The rules went into effect earlier this year. DFS Superintendent Vullo said the costs were being baked into insurance premiums. The New York State Land and Title Association and others sued to get them overturned, and last week, Manhattan Supreme Court Judge Eileen Rakower overturned the new regulations. The decision annulled all of the new statutes. Judge Rakower noted: "To construe [the law] in this manner is to hold that the Legislature intended to prohibit title insurance corporations from marketing themselves for business-an absurd proposition." Superintendent Vullo said the state will appeal, noting: "(DFS) remains steadfast in our belief that Regulation 208 is a necessary supervisory tool to ensure appropriate market conduct and to protect New York consumers."

New York Ranked 27th In Business/State Economic ClimateNYS

A new CNBC scorecard scored all 50 states on more than 60 measures of competitiveness, developed with input from a broad and diverse array of business and policy experts, official government sources, CNBC's Global CFO Council and the states themselves. States receive points based on their rankings in each metric. The metrics are broken into 10 broad categories, weighted based on how frequently each is used as a selling point in state economic development marketing materials. New York State ranked 48th in "business friendliness" and 47th in "cost of living" and was 42nd in "cost of doing business." It came in 4th in "technology and innovation" and 3rd in "education." View the full scorecard.

Fiscal Watchdog Opposes New Tax Credit

The  Citizens Budget Commission urged Gov. Cuomo to veto  legislation to create a new tax credit for investments in rural communities.  The fiscal watchdog  said the proposed investment credit approved by the legislature last month is overly generous. The group also opposes any new economic development initiatives until the state adopts additional spending transparency and accountability measures. A spokesman for the Governor said the bill has not been forwarded to their office.

Washington, D.C.

Reg Agencies Issue Interim GuidelinesGuideline

The federal banking agencies issued interim positions detailing rules and associated reporting requirements following the passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act. 
  • They extended the deadline for company-run stress testing requirements for banks under $100 billion in assets until Nov. 25, 2019. 
  • They also will not enforce the Volcker Rule exemption in a manner inconsistent with EGRRCPA, and will address statutory amendments through a separate rulemaking process. 
  • With respect to the reporting of HVCRE on the call report, the agencies said that the statutory changes are effective immediately and therefore banks should only use the higher risk-weight of 150 percent for those commercial real estate exposures meeting the statutory definition of a HVCRE ADC loan. 
  • Banks may use available information to reasonably estimate and report only HVCRE ADC loans. Banks may refine these estimates in good faith as they obtain additional information, but will not be required to amend previously filed regulatory reports as these estimates are adjusted. Or, a bank may also continue to report and risk-weight HVCRE exposures in a manner consistent with current call report instructions.

BCFP: Latest On HMDA Collection & Reporting

The Bureau of Consumer Financial Protection (BCFP) announced that, following the passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act, low-volume community bank lenders will now be exempt from certain HMDA data collection and reporting requirements. 
  • Community banks that originate fewer than 500 closed-end mortgage loans or 500 open-ended lines of credit will no longer be required to collect, record, and report certain data points specified in current Regulation C of HMDA. 
  • The bureau also restated that reporting entities will not have to resubmit HMDA data collected in 2018 and reported in 2019 for non-material reporting errors, and that it will not assess penalties for data collected in 2018 and reported in 2019. The format of the Loan/Application Registers for institutions filing HMDA data collected in 2018 will not be affected. 
  • Banks that do not report information for a certain data field due to the Act's partial exemptions will enter an exemption code for the field specified in a revised 2018 financial institutions group that the bureau expects to release, along with additional HMDA reporting guidance, later this summer.  

Latest On BSA, AML & CFT Reforms

ICBA has released a plan for updating the Bank Secrecy Act (BSA), anti-money-laundering (AML), and combating-financing-of-terrorism (CFT) laws and regulations. The white paper,  "Modernizing Anti-Money Laundering and Anti-Terrorist Financing Laws and Regulations," focuses on how policymakers can streamline the nation's outdated BSA/AML/CFT framework while improving its effectiveness.  The paper advocates updating currency transaction report and suspicious activity report thresholds, collecting beneficial ownership records at the time a legal entity is formed, providing more current information to financial institutions, and creating a tax credit to offset the cost of BSA.

Who Has Chairman Powell's Ear?

According to Reuters, Federal Reserve Chair Jerome Powell spends more time with Members of Congress, White House advisers and bankers than Janet Yellen, his predecessor, did. Yellen was more prone to favor meetings with professors, the Treasury Secretary and community advocates. That's based on an analysis of calendars detailing Chairman Powell's first four months on the job, which are on the Fed's website.

Senate Banking Committee Has Busy Month

Kathy Kraninger (left) & Jerome Powell (right)

The Senate Banking Committee will hold a hearing July 19 to hear from Kathy Kraninger, President Trump's nominee to head the Bureau of Consumer Financial Protection (formerly the CFPB). Kraninger, who is currently the Office of Management and Budget's program associate director for general government, would replace acting director Mick Mulvaney (who is also OMB Director) if confirmed by the Senate. There will also be a Committee hearing July 12 on credit bureaus, and Federal Reserve Chairman Jerome Powell delivers his semiannual report to the Committee on July 17.

  • Brian Johnson, who has been policy director at Bureau of Consumer Financial Protection (BCFP) under Acting Director Mick Mulvaney, was named Acting Deputy Director. Johnson is a former staffer for House Financial Services Committee Chair Hensarling (R-TX). He replaces Leandra English, who left and dropped her challenge of Mulvaney's leadership of the Bureau. 

View the full summary
of all New York primary results. 

Industry Trends & Updates

NYBDC/EGF Helps  Keep The Door Open For 
Small Business CustomersEGF

Excelsior Growth Fund (EGF) is NYBDC's nonprofit Community Development Financial Institution, and IBANYS' exclusive online lending partner. IBANYS urges New York community banks to join the growing number of those 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 please contact SVP Bryan Doxford: bryan.doxford@excelsiorgrowthfund.org or (212) 430-4512.

Homeowners Sitting On "Tappable" Equity

Homeowners now have a collective $5.8 trillion in tappable equity, the highest volume ever recorded. The average homeowner with a mortgage gained $14,700 in tappable equity over the past year and has $113,900 available to draw.  Consumer confidence in the housing market, which has been quite bullish, is actually dropping now. The collective amount of "tappable" equity (the appraised value of a home minus the 20 percent most lenders require borrowers to keep as a safety net) grew by 7 percent in the first quarter of this year compared with the previous quarter, according to the mortgage software and analytics company Black Knight. That is up 16.5 percent compared with a year ago, and is the largest single-quarter growth since the company began tracking it in 2005.

Consumer Credit Up

The Federal Reserve reported that consumer credit increased at a seasonally adjusted annual rate of 7.6 percent in May. Revolving credit (which includes credit card spending) rose 11.4 percent. Non-revolving credit (such as auto and student loans) increased 6.2 percent.

Reg Relief For Regional Banks?

Regional banks with $100 billion in assets or fewer are the target of a federal de-regulatory effort. Congress recently passed and the president signed S.2155, legislation that provided regulatory relief rules for small and mid-sized banks. The Office of the Comptroller of the Currency, Federal Reserve and FDIC are outlining how regulators will ease rules on regional institutions that no longer fall into the category of systemically important financial institution.

New Data Breaches

Macy's warned its online customers of a cyber threat that targeted customer profiles for nearly two months, the 
Detroit Free Press reported. The retailer said that on June 11 it detected suspicious login activities by a third party that used valid usernames and passwords to gain access to the customers' accounts from April 26 to June 12. Separately, the Timehop 
social media app said a data breach has affected 21 million users. Names, email addresses, and some phone numbers were taken. Financial data and private messages were not affected.

It's Nomination Season For FHLBNY Board Seats --
Deadline Is July 31

The Federal Home Loan Bank of New York (FHLBNY) is soliciting nominations for candidates to serve on its Board of Directors for terms commencing January 1, 2019. Five Directorships are up for election this year: 
  • One seat representing the FHLBNY's New York members 
  • Two representing the FHLBNY's New Jersey members 
  • Two Independent Directorships representing the whole District. 
The FHLBNY's official Certificate of Nomination was sent to members June 29, 2018. 
  • Eligible stockholders may use the Certificate to nominate one person for each of their respective state's open Member Directorships. 
  • Individuals interested in being nominated for the two open Independent Directorships must first submit an Independent Director Application Form to the FHLBNY. 
All Certificates of Nomination and Independent Director Application Forms are due at the FHLBNY by 5:00 p.m. ET on July 31, 2018. View the details on the election and a list of key election dates

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

James Cook, First President of BSNB
n 1839, along with being the County seat, the community of Ballston Spa boasted 10 well-known hotels, multiple mills and factories, a courthouse and prison, numerous stores and mechanics' shops, three churches, a school, a library and two printing offices. All this presented a great need for a community bank in Ballston Spa, which prompted James Cook and 12 additional well-regarded members of the community to pursue the creation of The Ballston Spa Bank. The first organizational meeting was held on December 8, 1838 and the bank officially opened its doors to customers on May 15, 1839.
Original Office, 87 Front Street, Ballston Spa, NY
Through the Civil War, two world wars, the Great Depression and more, the bank, now known as Ballston Spa National Bank, or BSNB, has been a stalwart in the community, helping thousands of businesses and individuals reach their financial goals. The institution's ability to remain viable and strong through the ups and downs has helped everyone from companies and professionals reach greater success, to allowing individuals to see their dreams of home ownership or other aspirations come to fruition.
Corporate Plaza, 2011
Today, BSNB strives to develop strong relationships with customers by providing customized solutions and exceptional service and support.  Whether at one of thirteen convenient branch locations or at a client's home or office, we spend the time to better understand needs and to make the experience an easy one. As a community based bank, decisions are made locally by bankers who live and work in the many towns and cities that comprise the greater Capital Region of New York state. Likewise, the deposits that we safeguard and help grow are reinvested in this area to help strengthen the local economy and community. 
Annual Community Service Day
And while we prefer doing business face to face, we also offer customers a number of automated delivery channels and services to make busy lives run smoothly.  Whether searching for information on our website, or utilizing online banking or cash management services, we know customers find these and other solutions convenient and valuable.
In addition to our customer service commitment, BSNB is also focused on giving back and strengthening local communities
Annual Community Service Day
through our Volunteers in Action Program, Community Service Day, and through financial contributions by the company and the BSNB Charitable Foundation.  Through these efforts, we strive to make a positive difference each and every day.
To learn more about BSNB, please visit www.bsnb.com. To become part of BSNB's online community, please follow us on www.facebook.com/YourBSNBwww.twitter.com/BSNB, or www.linkedin.com/company/ballston-spa-national-bank

IBANYS Spotlight Is On...

An IBANYS Preferred Partner

     Banks & Diversified Financial Institutions

Meeting the insurance needs of depository financial institution clients, which can range from a community bank to a credit union to a diversified financial company, can be a challenge. Fortunately, Travelers has many solutions for this varied client segment.

Travelers offers a range of  insurance protection through Travelers SelectOne+ ® . This flexible product line provides a robust portfolio of insurance options, including D&O, cyber, bankers professional liability, financial institution bonds, ID fraud expense reimbursement and property/casualty coverages.

For more information, please contact Mark Horton, Agent: 
Phone: (800) 542-8770
Website: www.travelers.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 there have been two New Yorkers who have chaired the U.S. Senate Banking Committee (or its predecessor, the Committee on Banking & Currency)
  • Robert F. Wagner (D), 1936-49
  • Alfonse D'Amato (R), 1995-99.
Five New Yorkers have chaired the House Financial Service Committee (actually, its predeccor, the Banking & Currence Committee):
  • Theodore Pomeroy (R), 1865-69
  • Samuel Coc (D), 1875-77
  • Henry Bacon (D), 1891-93
  • Edward Vreeland (R), (1909-11)
  • Edmund Platt (R), 1919-20
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