June 6, 2018

In This Issue: 
  • Congress Returns -- Latest Updates
  • Legislative Session Winding Down -- State Senate In Gridlock
  • McWilliams Sworn In As FDIC Chair 
  • IBANYS H.R., Security Conferences On Tap Over Next Two Weeks -- Register!
  • Follow IBANYS On Facebook, Twitter, LinkedIn and Instagram!

Message From the President

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

In Albany, the remaining days of the 2018 New York State legislative session are now down to a precious few, with adjournment scheduled for June 20. IBANYS is working hard through the final days, particularly in terms of playing vigilant defense, as we seek to ensure no further expansion of credit union powers and authorities are approved -- and, to make certain that these entities that pay no state or federal taxes are not allowed to accept state, municipal or public deposits. There are still bills afloat in Albany that would allow them to do just that under the auspices of the State Business Development Program, currently restricted to banks. We will hold a government relations call this Friday to assess the current status and likely path forward in Albany. 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.

On the educational front, this week IBANYS held our Lending Conference, which we co-hosted with our preferred partner T.Gschwender & Associates. The program 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. Next week, we will hold our Regional Human Resources Conference June 12 and 13 in Rochester and Troy, and we'll wrap up a very busy and productive June with our Regional Security Conferences June 19 in Rochester and June 20 in Troy. 

The Security Conference -- which we will co-host with IBANYS preferred partner,  Wolf & Associates, P.C. -- will focus on a number of critical issues including cyber security threats to the financial sector. As hackers and cyber criminals get smarter, community banks need to defend ourselves. One critical way to do so is through programs like this one, 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. The dangers posed to community banks are real. Community banks need to be informed and prepared, and this conference will certainly help with that.

There is still time to register for these two important programs.  
Contact Linda Gregware at lindag@ibanys.net with questions. 
    • IBANYS' Regional Human Resource Conferences are June 12 in Rochester, NY and June 13 in Troy, NY. They will address sexual harassment, FMLA, PFL, talent acquisition and retention, benefits, identity theft, and much more. Please urge your HR directors and those in supervisory roles to register. Brochure, Registration Form
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

                                                       Human Resources Conference

  June 12, 2018             June 13, 2018
 Hilton Garden Inn           Hilton Garden Inn
Rochester/Pittsford                    Troy
800 Pittsford Victor         235 Hoosick Street
Pittsford, NY 14534           Troy, NY 12180


              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
State Senate "In Chaos, Gridlock" As 2018 Session Winds Down

The State Senate and Assembly are scheduled to adjourn for the year on Wednesday, June 20. The 2018 session has just 7 days remaining. In the Senate, the session is ending in an environment of extreme partisanship and frustration. The Senate is now divided at 31 votes each for Republicans and Democrats, as Sen. Croci (R-L.I.) has returned to active military duty. With neither party having the 32 votes needed to pass legislation, the Senate has become a political battleground, described in press reports as having "devolved into chaos and gridlock."

Senate Majority Leader John Flanagan (R-L.I.) was "exasperated" with the ongoing
Lt. Governor Kathy Hochul
Senate Majority Leader John Flanagan (R-L.I)
presence of Lt. Gov. Kathy Hochul in the chamber, and blamed her (and Governor Cuomo) for the gridlock. The Governor blamed Republicans in Albany for "mimicking the Republicans in Washington." One report noted: "Conditions that existed in the early part of the decade for compromise and deal making in the Legislature have broken down and the rewards for working with another member of the opposite party don't exist like they once did." With that as background, among the bills IBANYS is closely monitoring that are still being considering:

  • A.6949B Zebrowski/S.6700, Hamilton would 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). The bill remains on third reading on the Assembly calendar. It has not yet moved in the Senate, where it remains in the Banks Committee. 
  • The Assembly Ways & Means Committee reported 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.
  • S.3755 (Savino), which IBANYS supports, helped draft and has on our legislative program, is currently on the Senate floor awaiting a vote after being reported by the Senate Banks Committee. It would provide regulatory relief by allowing state chartered banks under $8 billion to invest in (and utilize) service corporations to achieve economies of scale when complying with regulations by permitting community banks to use such corporations to provide shared services among member banks to reduce compliance costs. IBANYS continues to seek support in the Assembly. 
  • Another bill on IBANYS legislative programS.3756 (Savino), would exempt banks from state CRA examinations if they have assets of less than $1 billion and received a satisfactory or better CRA rating in their most recent CRA exam by its primary federal regulator. That bill has passed the Senate, but has not yet received action in the Assembly. 
  • IBANYS is reviewing legislation (S.6277A) that would treat manufactured housing as real property if it is permanently affixed to a foundation.

Rep. Sean Patrick Maloney (D-Lower Hudson Valley) and former Democratic gubernatorial and congressional candidate Zephyr Teachout will run in the  Democratic primary for the nomination State Attorney General . T hat primary also includes NYC Public Advocate Letitia James (the officially endorsed candidate of the State Democratic Party) and former unsuccessful Lt. Gov. candidate Leecia Eve, a member of the Board of Commissioners of the Port Authority of New York and New Jersey.

Washington, D.C.

Senate Bill Strengthening Small Business Program

The U.S. Senate passed the bipartisan, H.R. 4743 the Small Business 7(a) Lending Oversight Reform Act, and is now sending the bill to the president to be signed into law. The pro-community bank legislation would strengthen the Small Business Administration 7(a) program, and includes targeted reforms to ensure the program continues safely expanding the reach of lending and credit services to a broader range of borrowers who would not qualify for a conventional loan. ICBA President & CEO Rebecca Romero Rainey noted:  "ICBA and the nation's community bankers thank Congress for passing this much-needed bill to promote a robust and sustainable 7(a) program to help small businesses create jobs and strengthen our economy. The Small Business Administration's 7(a) loan program allows community banks to use their unique underwriting skills to more effectively serve local small businesses."  H.R. 4743 would :
  • Strengthen the integrity of all SBA guaranteed lending programs by codifying the SBA Office of Credit Risk Management and Lender Oversight Committee, increasing transparency in the office's budget, and providing guidelines for lender reviews and lender appeals rights;
  • Safeguard the 7(a) program from abuse by codifying the SBA's "Credit Elsewhere Test," which requires lenders to fully substantiate and document the reasons a given applicant cannot be served with conventional credit; and
  • Stabilize 7(a) program funding by allowing the SBA to lift the cap on general business loans by up to 15 percent of the limit if it is determined the cap will be reached, as it was in 2015, which disrupted SBA lending and required ICBA-backed emergency legislation.

In Other Washington News:

  • ICBA asked Sen. James Inhofe (R-OK) to offer an amendment to a defense spending bill that would promote competitive banking services on military bases. ICBA cited its support for a bipartisan amendment from Rep. Steve Russell (R-OK.) promoting parity between banks and credit unions. Banks on military bases are required to pay rent for the use of facilities, though tax-exempt credit unions may operate rent-free due to a decade-old law. The Russell amendment would require the Defense Department to accept the value of services provided by military banks as full payment for the space they occupy on military installations.
  • Jelena McWilliams has been sworn in as FDIC Chairman. McWilliams, who has served key roles at Fifth Third Bank in Cincinnati, the Senate Banking Committee and the Federal Reserve Board, succeeds Martin Gruenberg, who has served on the FDIC board since August 2015 and as chairman since November 2012. Chair
    McWilliams said it is "an honor and a privilege to join the FDIC as Chairman." She thanked Gruenberg for "his service, dedication, and leadership during his nearly 13 years at the FDIC."  McWilliams' confirmation means that every federal banking regulator now has  an official appointed by President Trump in charge. 
  • The White House said that Elad Roisman, the chief counsel for the Senate Banking Committee, is the President's choice to be a member of the Securities and Exchange Commission. If confirmed by the Senate, Roisman would replace Michael Piwowar on the SEC.
Industry Trends & Updates
Mortgage Applications Up For Week, But Down From 2017

The Mortgage Bankers Association reported that after falling for a month, mortgage application volume jumped 4.1 percent last week from the previous week. Volume was 2 percent lower than a year ago, attributed mainly to weakness in refinances.  The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to 4.75 percent (from 4.84 percent), with points decreasing to 0.46 (from 0.47) including the origination fee for 80 percent loan-to-value ratio loans. That marked the lowest rate since the week ending April 20. Applications to refinance a home loan increased 4 percent from the previous week, but were 17 percent lower than a year ago. Interest rates were lower last spring. Mortgage applications to purchase a home also increased 4 percent for the week and were 9 percent higher than a year ago. 

DiNapoli Reports On Tax Collections, IDAs

State Comptroller Thomas DiNapoli issued a report noting that New York City's tax collections exceeded forecasts by almost $1.5 billion in Fiscal 2018, driven by higher-than-expected personal income tax collections and lower-than-predicted property tax
State Comptroller Thomas DiNapoli
New York City now projects a surplus of nearly $3.7 billion for the fiscal year ending June 30, which will be used to balance the Fiscal 2019 budget. Comptroller DiNapoli also recently issued a report on local industrial development agencies showing that projects they supported contributed to job gains in 2016, but  the gains were not as large as they were the year before.  New York's IDA's reported $715 million in net tax exemptions in 2016, up almost 3 percent from 2015. D ownstate regions accounted for 57 percent of the total net jobs gained through IDA projects in 2016, with Long Island achieving nearly 25 percent of the statewide total. IDAs in upstate regions accounted for 43 percent of the total net jobs gained.

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/ 

Preferred Partners Spotlight of the Week
Wolf & Company, P.C.

Wolf & Company, P.C. is  one of the top regional certified public accounting firms in the Northeast, New York and New Jersey. Building on their tradition of unparalleled guidance, Wolf & Co. provides their clients with audit and assurance, tax, business consulting, risk management services, and  WolfPAC Integrated Risk Management®.

Website:  www.wolfandco.com


John Doherty,  Financial Institution Audit and Tax
Phone: (617) 261-8172
Fax: (617) 542-0400
Email:   jdoherty@wolfandco.com

Gerald R. Gagne,  Director, Risk Management Services
Phone:  (617) 428-5455
Fax:  (617) 423-6229

Stephen R. King,  Director, Regulatory Compliance
Phone:  (617) 428-5448
Fax:  (617) 423-6229


Pentegra Retirement Services

Pentegra is a leading provider of retirement plan, fiduciary outsourcing and institutional investment solutions to clients nationwide. Pentegra is one of the largest, most experienced Multiple Employer Plan (MEP) providers in the country. As a privately held company, they offer an independent perspective and objective point of view. They are also a true outsourced fiduciary administration, delivering a level of fiduciary protection unmatched in the industry. 

Website:  www.pentegra.com

Contact Information:

Fabrizio D'uva, Regional Director, BOLI & Non Qualified Benefits Plans
Phone: (800) 872-3473
Cell: (609) 977-5891

Kevin Killian, National Sales Director, BOLI and Non-Qualified Benefit Plans
Cell: (908) 872-4801

Wade M. Connor, Regional Director
Phone: (704) 608-4563


Luse Gorman, P.C.

Luse Gorman, PC has specialized in representing community financial institutions for over 25 years. Luse Gorman is consistently one of the leading law firms nationally in mergers and acquistions, and the leader in capital raising transactions, including stock and debt offerings, mutual-to-stock conversions, mutual holding company reorganizations and other capital raising transactions. Their attorneys have completed more than 150 mergers in the past ten years alone, and nearly 100 capital raising transactions during this time period. They also advise financial institutions on a broad range of executive compensation and employee benefits matters, including ESOPs. A substantial part of the Firm's practice also includes advising clients on SEC reporting and compliance, stockholder relations, corporate governance, strategic planning and bank regulatory and enforcement matters.

Website:  www.luselaw.com

Contact Information:

Jeff Cardone, Partner
Phone: (202) 274-2033
Fax: (202) 362-2902


T. Gschwender & Associates

T. Gschwender & Associates is best known for their loan review service. But they do more than just loan reviews. Credit analysis, field audits, TDRs, ALLL, equipment evaluations, appraisal reviews, business valuations, environmental remediation, and problem loan management are just a few of the services they provide. They value the relationships they have with their clients, as their goal is to provide you honest, direct feedback that will help you strengthen your processes, not create more problems. You can rest assured that their communication lines will remain open before, during, and after the engagement, always accessible.

Contact Information:  

Bharpur "Bo" Singh, President & Owner
Phone: (315) 701-1293
Fax: (315) 701-1296


Travelers Insurance

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.

Website:  www.travelers.com

Contact Information:

Mark Horton, Agent
Phone: (800) 542-8770


Homestead Funding Corp.

Homestead Funding Corp. are a licensed mortgage broker with branches throughout the eastern U.S. In operation since 1995, they're headquartered in Albany, NY and have been the area's largest independent mortgage lender. They have many satisfied customers, originated billions in residential mortgages, and maintain a reputation of exceptional service, integrity & reliability. 

Contact Information:

Daniela Bigalli, VP of Sales and Marketing
Phone: (518) 464-1100


ICBA-Independent Community Bankers of America 

ICBA Bancard/TCM Bank

About:  Bank access to competitive credit, d ebit and merchant processing options, c omprehensive card management tools,    exclusive Fraud Loss Protection program,    competitive credit card portfolio valuation, and    consultation and purchase options.

Contact Information:

Phone:  (800) 242-4470
Email:  bancard@icba.org


TCM Bank, N.A. 

About:  Total Card Management® Program,    evaluate and consultation on direct-issuing banks' portfolios,    purchase community bank credit card portfolios, and  help agent bank partners develop start-up portfolios.

Website:  www.tcmbankna.com

Contact Information:

Phone: (813) 287-4880


ICBA Mortgage

About:  Mortgage lending,  products and services through strategic partnerships, and  powerful technology through multiple providers.

Contact Information:

Phone:  (800) 253-5356


ICBA Reinsurance

About:  Life and disability insurance coverage,    receive commission income,    opportunity to qualify for dividends, and o pportunity to qualify for a share of investment income.

Contact Information:

Steve Ello, President/CEO
Phone:  (888) 790-6625


ICBA Securities

About:  Full suite of investment products and services exclusively through Vining Sparks,  state-of-the-art asset/liability and bond accounting products, and  full calendar of educational events for community banks and investment professionals.

Contact Information:

Jim Reber, President & CEO
Phone:  (800) 422-6442


ICBA Strategic Technology Solutions

About:  Outsourced IT management solutions,    compushare's C cloud computing platform, and  library of hundreds of banking and business applications.

Website: www.icbasts.com

Contact Information:

Phone: (800) 422-8439
Email: info@icba.org
IBANYS Spotlight Is On...

Brown Security Solutions, LLC  

For more than 40 years, the Brown name has been synonymous with excellent customer service in Upstate New York. They pride themselves on their ability to handle your bank security needs quickly and accurately, each and every time.  Their dedication to superior service translates into less hassle, more efficient security solutions and the peace of mind that comes with knowing your operation will be well protected - when it matters most.  A sampling of services they offer includes:
  • Electronic & Physical Security Products
  • Special Projects
  • Service Contracts
  • Burglar/Fire Protection
  • Surveillance
  • Card Access Control
  • ATM & TCR Sales and Service 
  • Vault & Safe Sales and Service.
For details, call or email Don Musielak: 

Phone: (716) 648-6012
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 according to FDIC data, there were 7,309 community banks across the nation in the third quarter of 2009? That number decreased every quarter since, winding up at 5,168 in the first quarter of this year. That's a decrease of 2,141 reporting institutions over 35 fiscal quarters or roughly 244 fewer a year. 
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
Connect With Us!