July 25, 2018

In This Issue: 
Message From the President

John Witkowski, President & CEO

IBANYS Welcomes Our Newest Associate Member!

BBVA Compass  offers a full-range of correspondent banking services to help community banks maximize profits and enhance their bottom line. For more information on how  BBVA Compass  can help your bank, contact SVP/Relationship Manager  Brian Good at (717) 941-2046 or at brian.good@bbva.com. Welcome aboard!

Annual Convention Update

We recently sent out information and details on "Community Banks: the Capital Advantage" -- IBANYS' 2018 Annual Convention on  September 25 - 27 at the Hilton Albany at 40 Lodge Street, Albany, New York. 

Our 2018 IBANYS Convention brochure includes everything you need, from program details to registration forms. You will also find specifics about attire, hotel booking, dinner choices, and our convention schedule. 

We have lined up an impressive group of speakers, including our Wednesday morning keynote, "A Pragmatic Approach to Strategic Planning" by Susan Powell Byrd, CEO of Westover Strategy, Inc. For a full list of our speakers, see the convention brochure.

Important forms to keep in mind are: 
  • Information about our PAC Silent Auction. This popular convention feature is the perfect opportunity to showcase items from your region. while contributing to an essential committee that focuses and advocates for community banks in NYS legislative affairs.
The convention is our signature event of the year,  and brings together the leadership of New York's community banks, IBANYS preferred partners & associate members, sponsors and business show exhibitors.  Now is the time to sign up. Whether you plan to attend for one, two three days, IBANYS' Convention will be exciting and informative.  Don't miss your chance to network while also earning up to 12.5 CPE credits . So don't delay, get your information in today!


IBANYS' Board of Directors Meeting

IBANYS' Board of Directors met this week to discuss your Association's priorities and plans for 2018 and beyond. It was a productive and positive discussion regarding our financials, government relations efforts, educational programs, governance and future. If you would like to hear more about any of these discussions, I would welcome your questions and comments. Contact me at johnw@ibanys.net. I want to thank Chairman Mike Briggs, the executive committee and our full board for their continued support and for sharing their time and their counsel. Their contributions are essential.

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

Follow IBANYS On Social Media!

Have you found and followed IBANYS on social media yet? Connect with us today!


Facebook: @ibanys1 | Twitter: @ibanys1

Instagram: @ibanys1 | LinkedIn: @ibanys

2018 Annual Convention

                                                           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

*For the latest Convention news, follow us on 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 at  lindag@ibanys.net or at (518) 436-4646.

Convention Update: Key Speakers On Board 

Susan Powell Byrd, CEO of Westover Strategy, Inc., will be our Wednesday morning keynoter and will focus on "A Pragmatic Approach To Strategic Planning." She has extensive experience in all aspects of strategy, based on many years in a wide range of roles and industries, during which she has developed and leveraged her strategic capabilities. She also has in-depth practice using various methodologies to align an organization's strategic direction with operations. In 18 years at Xerox, she was General Manager of two successful businesses, Vice President of Strategy, Vice President of Alliances, Vice President of Customer Insight, Vice President of Strategy and Operations, and Chief of Staff to the company's President. She also has over 25 years of not-for-profit and for-profit board experience, as Chair and Vice Chair. She has also been a member of various board committees, including Executive, Long Range Planning, Resource Development, Nominating, Program and Planning, and Governance. 

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. Superintendent Vullo was appointed by Governor Cuomo and confirmed by the New York State Senate in 2016. She previously was a litigation partner at Paul, Weiss, Rifkind, Wharton & Garrison LLP. She also served as Executive Deputy Attorney General for Economic Justice Division in the Office of the New York State Attorney General, under then New York State Attorney General Cuomo.

Watch this space for announcements of additional speakers. . .and check out our convention brochure for full details!

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

  • The New York State Legislature is adjourned until January 2019
  • New York Attorney General Barbara Underwood joined 20 of her peers from other states in urging Congress to enhance election security ahead of the 2018 midterm elections to guard against potential cyberattacks. 
  • A New York State Department of Financial Services inquiry into the finances of Jared Kushner, senior White House adviser and son-in-law of President Trump, has led to an expanded inquiry into the relationship of Trump's associates with the New York-based lender Signature Bank.

Washington, D.C.Washington

Host Your Local Members of Congress During the August Recess Congress

IBANYS encourages New York community banks to invite their local Members of Congress to visit the bank during the August recess that begins next week. ICBA has released an updated version of its "Meetings on Main Street" guide for community bankers interested in doing so.  The guide provides a step-by-step process on scheduling, conducting and promoting in-district meetings with your members of Congress, including community bank visits by lawmakers and staff. It also offers social media tips and a sample letter to request a meeting or bank visit.  For more information, contact ICBA Assistant Vice President of Advocacy Joshua Habursky at  joshua.habursky@icba.org or (202) 821-4355.

House Ways & Means Urges Tax Reform 2.0

The House Ways and Means Committee released "Tax Reform 2.0" -- a legislative framework to permanently implement certain provisions of the Tax Cuts and Jobs Act. It would make permanent the tax reform law's individual rate cuts and new deduction for shareholders in Subchapter S banks and other pass-through businesses. These provisions are scheduled to expire at the end of 2025. Bill language to implement the framework is expected to be introduced after the Labor Day recess, followed by a House vote later this fall. (The likelihood for Senate action this year is less clear, although the House bill will set a benchmark for future tax reform legislation.) ICBA is urging lawmakers to include a provision that would allow Subchapter S shares to be held in individual retirement accounts.

IBANYS Supports Nomination of Michelle "Miki" Bowman for Fed Reserve Board

Michelle "Miki" Bowman
IBANYS supports ICBA in calling for action on  the nomination of Michelle "Miki" Bowman for the Federal Reserve Board. ICBA has noted that Bowman's nomination for the board's community banking seat was approved by the Senate Banking Committee on a bipartisan vote. Bowman, the Kansas State Bank Commissioner, has served as vice president of Farmers & Drovers Bank in Council Grove, Kan. She has also worked for former Sen. Bob Dole (R-Kan.), the House Committee on Transportation and Infrastructure, the House Committee on Oversight and Government Reform, the Federal Emergency Management Agency, and the Department of Homeland Security. "ICBA worked hard to secure a statutory requirement of community bank representation on the Fed board, and we fully support Ms. Bowman as uniquely qualified to fill that important role," ICBA President and CEO Rebeca Romero Rainey said.

BCFP Nominee Kraninger's Hearing 

Kathleen Kraninger
The Senate Banking Committee held a hearing last week on the nomination of Kathleen Kraninger for Director of the Bureau of Consumer Financial Protection. Kraninger emphasized the need to collaborate with other agencies on supervision and enforcement, limit data collection to what is needed and required by law, and be held accountable to the American people. She said she would pursue the "proper balancing of all interests," including consumers and financial companies. The Committee has mostly operated harmoniously even when Chairman Crapo and Ranking Democrat Brown disagreed over significant issues. However, 
their opening statements at the hearing were a back-and-forth over the Bureau's history and Democrats' insistence that documents on Kraninger's part in administration decisions be released. Kraninger is currently the Office of Management and Budget's (OMB) program associate director for general government. If confirmed, she would replace Acting Director Mick Mulvaney (who is also OMB Director).  The Committee also considered the nomination of Kimberly Reed for president of the Export-Import Bank. ICBA has urged confirmation of both nominees. 

In Other News:

  • The House Financial Services Committee unanimously advanced legislation aimed at making it easier for federal and state financial regulators to work together on examining banks' third-party relationships, as well as a bill to establish a task force on financial technology.
  • The House passed an appropriations bill (H.R. 6147). Its provisions include an independent examination review director to ensure consistency of bank examinations; an expedited appeals process for examination decisions; greater transparency for the CFPB; authorizing the Fed to make exemption determinations under the Volcker Rule for banking entities; improvements for banks subject to "living will" submissions, and funding for the Community Development Financial Institutions (CDFI) program.  
  • Fannie Mae announced that its chief executive officer, Timothy Mayopoulos, will leave his post by the end of this year. The government-sponsored enterprise's board has not named Mayopoulos' successor. 
  • Federal regulatory agencies published their proposed changes to the Volcker Rule aimed at reducing the compliance burden and tailoring the rule's effect for its intended purpose. The proposed changes were included in the Federal Register, with comments due by September 17.  S.2155 exempted banks that are under $10 billion in assets from Volcker Rule requirements. 
  • Including today, Congress has 14 legislative days remaining before the federal government is due to shutdown on September 30. A likely scenario at this point appears to be that Congress will try to pass a stop-gap measure to fund government until the end of 2018.
  • Federal Reserve Vice Chairman for Supervision Randal Quarles was sworn in for his second term as a member of the Fed board. Quarles has been serving on the board since last October to fill an unexpired term. He was confirmed by the Senate last week for a full term running through January 2032, with his term as vice chairman ending in October 2021. 
  • The Bureau of Consumer Financial Protection named Paul Watkins to lead its new Office of Innovation. The Office will focus on encouraging consumer-friendly innovation, engaging with entrepreneurs and regulators, and reviewing outdated or unnecessary regulations. 

Industry Trends & Updates

Your Bank is Losing Business to Private Lending Companies -- 
But it Doesn't Have to be that WayLendingCoArticle
by Bryan Adler, CEO of Vetter

Bryan Adler
In the era of massive growth and innovation with businesses across the nation, entrepreneurs are demanding time, convenience, and ease-of-use when they decide to apply for a line of credit. Unfortunately for banks, current operating procedures and heavy regulations prohibit their ability to tend to these demands as easily as customers want - 
Or do they?  Hundreds of fintech companies, like  Kabbage , are able to capture small businesses that utilize their quick and easy loan process for advance inventory purchases and working capital. Yes, their interest rates may be extreme, but customers are still using these financing platforms despite that fact. And community banks and credit unions are losing potential business opportunities to them. This doesn't have to be the case.  Read the full article.

Existing Home Sales Are Down

The National Association of Realtors reported that sales of previously owned homes fell for the third-straight month in June, as prices struck a record high amid a "severe housing shortage". Existing home sales fell 0.6 percent in June to an annualized rate of 5.38m units.  Declines in the South and West exceeded gains in the Northeast and Midwest. Sales are down 2.2 percent from a year ago.

Have You Joined The Homeland Security Information Network?

ICBA urged community bankers to join the Homeland Security Information Network (HSIN), the Department of Homeland Security's information-sharing environment. The Treasury Department distributes reports on cybersecurity and critical infrastructure protection to the network's financial services Community of Interest (HSIN-FS). With a series of DHS awareness briefings for network members starting today, community bankers can use an online guide on the ICBA website to request membership and begin accessing information from HSIN-FS.

Nominations Season for FHLBNY Board  Due By 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
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 please contact Bryan Doxford, SVP, at bryan.doxford@excelsiorgrowthfund.org or at (212) 430-4512.

Spotlight Bank of the Week

The Bank of Richmondville was started in 1881 as a privately-owned bank, established by Judge John Westover and Mr. James Foster. The bank was initially located on the present site of the Richmondville Post Office, across the street from its present Richmondville office.

In March of 1884, the firm of John Westover and James Foster added John R. Becker to the partnership.

In December of 1893, the Bank of Richmondville was established as a state chartered bank. Stockholders elected William E. Lewis, James H. Brown, A.D. Frasier, M.W. Harroway, Milo N. Bradley, H.S. Lewis and John Holmes as the first Board of Directors.

Richmondville, NY location
During its 125 years of service as a locally owned, independent, community bank, its history as included only six presidents. Mr. A.D. Frasier served as its first President from 1893 to 1926. The second president, succeeding Mr. Frasier, was Mr. John D. Holmes. Mr. Holmes (who became a director in January of 1907) served in that office from 1926 to 1967. Mr. Holmes' nephew, Chauncey H. Winters, served as the third President of the bank from 1967 to 1978. Mr. Winters was followed by the fourth President, Mr. Maurice J. Sperbeck, from 1978 until his retirement in December of 1992. The fifth President of the bank, Mr. Peter L. Randall, held that position from January 1993 through September of 1995. Randy L. Crasper was named President in January 1996.
Cobleskill, NY location

The bank's home office is located at 284 Main St. in Richmondville, a location utilized by the community for hometown banking services for decades.

In September of 1982, the Bank of Richmondville opened an office located at 857 East Main St. in Cobleskill. This office eventually became the main office and operations center.

Schoharie, NY location
On October 19, 1998, the Bank opened a branch office at 428 Main St. in Schoharie, New York.

The Board of Directors, numbering seven, are members of the community and committed to the principles and operation of the bank as an independent community bank. 

The bank is governed by regulations issued by the New York State Banking Department and the Federal Deposit Insurance Corporation.

The bank continues in its efforts to serve the area as an Independent commercial bank and to maintain its position as the area's "Hometown Banking Tradition" as it has since 1893.

Celebrating 125 years!

For more information, visit our website at www.bankrich.com or call us at (518) 234-4397.
IBANYS Spotlight Is On...

Vetter is a digital loan platform built specifically for community banks, in partnership with a couple of NYS banks. The Vetter platform is a combination of a loan-type agnostic online loan application along with a management workspace that allows the bank to generate fee income on all loans, collect updated financials from borrowers automatically, enhance the customer experience and stay compliant. 
Vetter empowers community financial institutions to optimize efficiency and profitability while exceeding customer expectations. 

For additional information, contact  Bryan Adler 
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 f rom 1684 to 1777, when New York was under the British colonial government, the Attorney General was appointed by the  British crown , or the colonial governor on its behalf?    From 1777 to 1822, the Attorney General was appointed by the  Council of Appointment   From 1823 to 1846, the Attorney General was elected by the  New York State Legislature  for a three-year term. New York State's  Attorneys General have been elected by the voters since 1847.

Did you know that among those who have held the office are: 
  • Aaron Burr (later the third Vice President of the United States) 
  • Martin Van Buren (layet the eighth President of the United States)
  • Jacob Javitz (later served four terms as United States Senator from New York)
  • Eliot Spitzer (later elected Governor of New York in 2006, resigned in 2008)
  • Andrew Cuomo (elected Governor of New York in 2010, seeking his third term)
  • Louis Lefkowitz (longest serving Attorney General (8 days short of 22 years)  
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