June 13, 2018

In This Issue: 
  • Legislature Session Enters Closing Days -- Credit Union Bills On Table?
  • IBANYS Security Conferences June 19-20 & There's Still Time to Register!
  • Action Coming On Farm Bill, Fed Nominees
  • Follow IBANYS On Facebook, Twitter, LinkedIn and Instagram!

Message From the President

John Witkowski, President & CEO
Working Through A Very Busy June. . . 

We are now entering the final days of the 2018 legislative session. The closing days can often present last-minute challenges. IBANYS is monitoring the legislative actions and introductions for any bills we need to support and oppose. Several initiatives are being considered that would allow credit unions to participate in the municipal deposits business. The State Senate is reportedly considering legislation to allow credit unions to allow them to participate in areas of the state allegedly lacking sufficient bank presence/ bidding/to handle the muni business. IBANYS responded that there is no such lack of sufficient interest in bidding for these deposits, and strongly opposes this and any other effort permit tax-exempt credit unions  to ac cept public deposits. 

In Washington , Congress returned this week from its recess and in the aftermath of enacting significant, meaningful regulatory relief for community banks under S.2155. A number of important issues remain, including addressing the farm bill set to expire on September 30. It now appears that at least the Senate will work through much of its previously scheduled August recess. The farm bill is still on the table, and the Senate is moving toward confirming the President's nominees for the Federal Reserve. 

In recent IBANYS news, last week we held our annual Lending Conference, co-hosted with our preferred partner T. Gschwender & Associates. It was a major success and was extremely well attended. It covered a number of aspects of both lending and credit, including commercial lending, commercial real estate lending, CECL, and a loan review process for lenders, portfolio managers and analysts. This week we held our first Regional Human Resources Conferences, in Rochester and Troy. Topics covered include sexual harassment, FMLA & PFL, health and wellness, among others. Head on over to our website to read full program and view the speakers presentations.

Next week, we'll wrap up a very busy and productive June with our Regional Security Conferences June 19 in Rochester and June 20 in Troy. We will be co-hosting with IBANYS preferred partner,  Wolf & Associates, P.C. It will focus on a number of critical issues, including cyber security threats to the financial sector. The dangers posed to community banks are real. As hackers and cyber criminals get smarter, community banks need to defend themselves. One critical way to do so is to get ahead of the criminals by attending our conference designed for IT Security Officers, Chief Information Officers, Incidence Response Managers, Risk Management Officers, Technology Officers, and Security Officers. We'll have an full lineup of experts on hand, including representatives from the U.S. Secret Service. Brochure, Registration Form

There is still time to register . Contact Linda Gregware at lindag@ibanys.net with questions.


Meanwhile, don't forget to hold the dates for our 2018 Annual Convention September 25-27 in Albany, NY. Hotel information is now available and more information will be released soon!

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!

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2018 Meetings

               Security Conference

   June 19, 2018              June 20, 2018
   Hilton Garden Inn            Hilton Garden Inn
  Rochester/Pittsford                    Troy
  800 Pittsford Victor         235 Hoosick Street
  Pittsford, NY 14534            Troy, NY 12180



                                                      2018 Annual Convention

            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
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.
Government Relations
IBANYS Monitoring Possible Credit Unions/Muni Deposits Bills 

With the Legislature set to adjourn for the year one week from today,  IBANYS is closely monitoring legislative actions still being considered. We are strongly opposing measures that would boost tax-exempt credit unions' competitive advantage even more by allowing them to accept public deposits, either under the State Business Development (BDD) Program or in areas they allege lack sufficient banks' bidding for the municipal deposit business. No formal bill has been introduced. Legislation formally introduced includes A.6949B Zebrowski/S.6700, Hamilton to permit federal and state chartered credit unions to accept State and Local deposits through the BDD program (a program currently available only to banks and thrifts). It is still on the Assembly floor, but remains in the Senate Banks Committee. Also, A.10232, Jean-Pierre/ S.7100, Kavanaugh, would allow low- income credit unions in New York City to join the Banking Development District (BDD) program. Credit unions in those branches within the BDD could accept municipal deposits (for the BDD program.) So far, it does not have support in the Senate. IBANYS was able to stop these initiatives last year, and we are opposing them this year as well. It would be inappropriate for credit unions, which pay no taxes, to have the additional ability to accept taxpayer deposits. IBANYS continues to work diligently to stop these efforts from being passed in the session's closing days.

In other news from Albany:
    • Governor Cuomo signed legislation A.8938, Zebrowski/ S.7294 (Hamilton ) -- a chapter amendment to last year's bill a bill that would have created an online lending task force. This new bill disbanded the Task Force, and authorizes and directs the State Department of Financial Services to conduct a study and issue a public report by July 1, 2018.
    • The Senate passed S.6650,Serino/ A.10905 (Lupardo) to require the DFS  to develop a public awareness campaign to educate consumers on different banking services available in New York, particularly services (including convenience accounts) to assist vulnerable adults. The bill was also reported by the Assembly Banks Committee. It is intended to reduce financial exploitation of the elderly. 
    • The Assembly Ways & Means Committee has reported A.2881b, (Brindisi)/ S.2420b (Griffo) would conform New York State law with new federal guidelines regarding which investment grade corporate bonds should be eligible collateral for municipal deposits.  The Senate passed its version of the bill, designed to create more opportunities for investment for municipal deposits. 

    • The Asssembly Banks Committee reported A.8705, (Cusick)/ S.6845, (Peralta), would require a notice to be posted on all ATMs warning customers about the use of skimming devices. and explaining how they can file claims if they think they have been a victim of skimming. The Committee also reported A.10567A, (Dickens)/S.7964A, (Hamilton) would add minority and women to the categories the DFS Superintendent takes into account when deciding whether banks are meeting the community credit needs.
    • IBANYS is reviewing legislation (S.6277A) that would treat manufactured housing as real property if it is permanently affixed to a foundation.

    • The Legislature is advancing a bill to prohibit consumer-credit agencies from charging a fee for initiating a credit security freeze --  a common preventative measure after a data breach, such as the hack of Equifax last year. The state Senate passed the bill on Monday. A version of the legislation passed the state Assembly earlier in the session, and the final version is expected to pass before the Legislature adjourns for the year June 20. 

Washington, D.C.
Senate Begins Markup Of New Farm Bill

Senate Agriculture Committee Chairman Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI.) released the bipartisan "Agriculture Improvement Act of 2018" which is the Senate's version of the next farm bill. It  would renew federal crop insurance and agricultural subsidies an -- unlike the House version defeated on the floor last month, the Senate bill leaves out new work requirements for food stamp recipients, which cost Democratic votes in the House.  The Committee began marking up the bill this morning. The House is expected to take up its version of the new farm bill later in June. 

ICBA To Regulatiors: Implement S.2155 Quickly

 ICBA is calling on federal regulators to quickly issue regulations implementing the bipartisan Economic Growth, Regulatory Relief and Consumer Protection Act (S.2155). ICBA told the prudential agencies and Bureau of Consumer Financial Protection (BCFP) the law contains numerous regulatory relief provisions that will help community banks expand access to credit and foster economic growth. Many  can be quickly enacted by simply revising existing rules. ICBA cited provisions offering "qualified mortgage" and Home Mortgage Disclosure Act relief, implementing Volcker Rule and escrow exemptions, expanding access to the 18-month exam cycle and Small Bank Holding Company Policy Statement, and providing for a short-form call report in two quarters of the year. 

ICBA: More Reasonable, Efficient Rule-making Needed
ICBA urged the Bureau of Consumer Financial Protection (CFPB) to improve its rulemaking processes in support of more reasonable and efficient regulations. ICBA wants the bureau to expand small-entity reviews of regulatory activities under the Small Business Regulatory Enforcement Fairness Act and to ensure feedback is included in proposed and final rules. ICBA also called for streamlined notices of proposed rulemaking, longer comment periods, red-lined final rules that flag changes to existing regulations, and other reforms.

Tell Your State Regulators 

Community bankers are encouraged to participate in a survey from state regulatory agencies and the Conference of State Bank Supervisors on a range of topics for research purposes. Survey results will be presented during the sixth annual Community Banking in the 21st Century research and policy conference, held Oct. 3-4 in St. Louis. Responses are due by June 30.

President Would Support Marijuana Bill?

The President said he is open to signing legislation that would make it easier for banks 
and credit unions to provide financial services to firms involved in the marijuana industry in states where the drug is legal. He said he "probably will end up supporting" the bill. It is sponsored by Sens. Cory Gardner (R-CO.) and Elizabeth Warren (D-MA.) but is considered unlikely to clear Congress this year.

President Trump is reportedly considering nominating Rep. Darrell Issa (R-CA), who isn't running for re-election, as Director of the Bureau of Consumer Financial Protection (BCFP) -- formerly called the Consumer Financial Protection Bureau (CFPB). The administration is close to making a decision and will likely announce the nominee by June 2. Acting Director Mick Mulvaney would return to full-time status as Budget Director. 

Senate Banking Committee Approves Fed Nominees  
Michelle "Miki" Bowman & Richard Clarida

esterday, the Senate Banking Committee approved t he President's nominations of  Michelle "Miki" Bowman   and Richard Clarida for the Federal Reserve Board. Bowman, the Kansas bank commissioner and former community banker, was approved by the committee on a bipartisan 18-7 vote.  Clarida's nomination was approved by a 20-5 vote. A full Senate vote is expected soon. Bowman, the Kansas Bank Commissioner and former community banker would fill  the seat dedicated to individuals with experience in community banking . Clarida, a Columbia University economist, would be Fed Vice Chairman. 

Here's The List Of Every Candidate Running For Congress In New York State

New York community bankers: Do you know who's running for the House in your areas? We are pleased to share a list from "City & State" that is based on the very latest information from the New York State Board of Elections. View the list of who is running for Congress in New York State -- both in the upcoming June primaries and the November general election.

Poll: Good News For Cuomo, DiNapoli, Gillibrand. Dems

Gov. Cuomo has sustained his lead over his Democratic primary challenger Cynthia Nixon, leading her by a 35-percentage point margin (61% to 26%), according to a poll released Wednesday by Siena College.  Cuomo and Nixon both lead presumptive Republican nominee, Dutchess County Executive Marc Molinaro.  Cuomo leads Molinaro 56 percent to 37 percent. Nixon leads him 46 percent to 35 percent. Molinaro has an 18-11 percent favorability rating, with 71 percent of likely voters unable to offer an opinion about him. Senator Gillibrand holds a 61-28 percent lead over her GOP opponent, Chele Chiavacci Farley, and State Comptroller DiNapoli leads Republican Jonathan Trichter 56-22 percent. The race for State Attorney General is wide open as none of the candidates tested has significant name recognition. The poll also found that: 
  • 43 percent of likely voters say they plan to vote for the Democrat for Congress, compared to 28 percent who say they'll vote Republican. Similarly, they said they will vote for a Democrat for State Senate by a 40-31 percent margin, and for a Democrat for State Assembly by a 42-27 percent margin. 
  • By 55-39 percent, voters said they would prefer to see the House of Representatives controlled by the Democrats next year, and they want Democrats to control the State Senate by 52-42 percent, they 

Industry Trends & Updates
Economic Growth "Solid" . . .Fed Hike Rates

The Federal Reserve today hiked its benchmark short-term interest rate a quarter percentage point. The Fed said in a statement that economic growth has been "rising at a solid rate," an upgrade from "moderate" in June. The central bank pointed to two more hikes ahead in its forecast, which would bring the 2018 total to four increases.

In its most recent forecast, the  Atlanta Federal Reserve Bank said  the three-month period is tracking at a 4.6 percent gain, exactly double the 2017 rate and well above the 2.2 percent in the first quarter. If accurate, the growth rate would easily out-distance the 3.1 percent gain for 2017 in the same three-month period. The Bank  raised its forecast after a report last week indicating a stronger-than-expected inventory build that raised the forecast one-tenth of a point.  Other trackers also indicate stronger growth, although the Atlanta Fed's  tracker is the most optimistic. CNBC's reliable Rapid Update, which looks at readings from top economists, sees the second quarter coming in at a 3.7 percent. The New York Fed's Nowcast is tracking a 3.1 percent gain. The unemployment rate is at 3.8 percent, and inflation is still hovering at or below 2 percent. Business and consumer confidence appear strong. 

Mulvaney: CFPB Is Now The BCFP

Acting Director Mick Mulvaney has changed the name of the Consumer Financial Protection Bureau (CFPB) to read as it officially does in Dodd-Frank: The  Bureau of Consumer Financial Protection (BCFP). He has changed the sign outside the agency to reflect the change. Meanwhile,  Mulvaney will also seek a 20 percent cut in funding for the Consumer Financial Protection Bureau to bring funding back to the 2015 level. "I've asked them to run through the experiment of reducing spending by 20 percent," Mulvaney said.

FHFA Proposes New Requirements For Fannie, Freddie

The Federal Housing Finance Agency proposed a rule to establish new risk-based capital and minimum-leverage capital requirements for Fannie Mae and Freddie Mac. The FHFA suspended regulatory capital requirements on Fannie and Freddie after placing them into conservatorships in September 2008, and the proposal would also be suspended during the conservatorship.

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

Glenville Bank- 1923
In 1923 a group of local businessmen decided that the time had come for the town of Glenville to open its own bank and formed the Glenville Bank. The staff was comprised of three employees, and cash had to be taken across the covered bridge to Schenectady each night for storage in a vault. The bank had barely begun to operate when the need for larger quarters became obvious and operations were moved to a new building. Thanks to the building expansion, we were able to introduce "auto banking" with the areas first drive up
Vault & Teller Line- 1950's
window in 1948. By 1956 additional branches were added and the bank's name officially changed to 1st National Bank of Scotia. In the summer of 1962, another first was notable as 1st National
Teller Window- 1952
Bank of Scotia became the first bank in the United States to use an electronic computer to service savings accounts.

Today, 1st National Bank of Scotia has ten banking locations and remains independently owned and operated. We are dedicated to providing creative financial solutions and superior personalized service to generations of families and businesses throughout the Capital Region. We encourage and support the growth and success of our customers, employees and the communities we serve.
Saratoga, NY Location

1st National offers a full range of financial products, as well as wealth management and insurance services. Our online products, including mobile banking, remote deposit, and cash management provide customers with secure, easy to use technology to make banking convenient. Fast, local decision making and a deep knowledge of our region provides our customers with tailored lending solutions when buying a home or starting a business.

Scotia, NY Location
As our products and services continue to evolve and change, our commitment to the communities we serve remains unwavering. Each year 1st National Bank of Scotia contributes thousands of dollars to area schools, local charitable fundraisers and community events. Outside of the bank our employees spend countless hours volunteering in the community, serving on boards, working with youth or simply collecting donations for a worthy cause. It's what we do. It's why we all work for a community bank.

To learn more about 1st National Bank of Scotia, our products and services please visit www.firstscotia.com.

IBANYS Spotlight Is On...

Lee & Mason Financial Services, Inc. is recognized as one of the pioneers in the Vendors Single Interest (VSI) line of insurance, and was the first to offer Gap Insurance coverage to auto lenders. Today, their key lines of business include: Blanket LSI (Lender's Single Interest) or Vendors Single Interest (VSI), Gap Coverage for Auto and Leasing, Insurance Tracking and Collateral Protection Insurance (CPI).

For mortgage lending, they offer Lender-Placed Mortgage Hazard Coverage with or without Insurance Tracking, Flood Coverage, as well as Blanket Mortgage Hazard Coverage and Mortgage Impairment protection. In the Professional Liability marketplace, Lee & Mason is a leading provider of Insurance Agents Errors & Omissions coverage. With over 75 years of combined underwriting experience, Lee & Mason has the expertise to offer coverage customized to the individual needs of each insured. They have always operated as a full-service program administrator. They handle underwriting, quoting and binding, policy issuance, premium collection and most importantly complete claims processing and reporting.

Systems technology and data security are key factors in the risk management services they provide to clients. They represent over a half-dozen commercial insurance companies, writing on an admitted basis and excess lines. All their carrier partners are 'A' rated by A.M. Best and known for their commitment to the lines of insurance that we write. Currently they insure hundreds of financial institutions and insurance agencies throughout the United States. They  have an experienced and talented management team backed by many dedicated and capable staff members, all standing ready to deliver the highest level of risk management services.

Charles Pritchard, Senior Vice President

(518) 863-4311
Website: www.leeandmason.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 are 354 credit unions with headquarters in New York providing banking services from more than 1,000 branch office locations as of June 2018? New York credit unions have a total of 5.63 Million members with over $81.92 Billion assets. 

Did you also know, unlike community banks -- which pay their fair share of state and federal taxes and are subject to CRA mandates to monitor their community reinvestment,  credit unions are tax-exempt, and have no CRA community reinvestment requirements?

Do you think your elected officials know all that? Shouldn't they?  
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