January 30, 2019


In This Issue: 
Message From the President

By John Witkowski, President & CEO

IBANYS' First Board Meeting Of 2019

This week, the Independent Bankers Association of New York State held our first board of directors meeting of the year, with Chairman Tom Amell of Pioneer Bank presiding. The board was briefed on various aspects including: 
  • IBANYS' Financial Position - positive and on point for the upcoming year
  • IBANYS' Official Audit - highly positive and platinum level+ in all areas
  • Legislative & Regulatory - updated board on federal and state government developments
  • 2019 Meetings/Conferences - reviewed the calendar for our upcoming meetings and conferences, as well as the agendas, speakers, etc.
  • Social Media - analyzed the progress of our various social media accounts since their launch one year ago as well as projected growth for 2019
In addition, we welcomed our 2018-19 officers: Chairman Tom Amell, Vice Chairman Mike Wimer of Cattaraugus County Bank and Secretary/Treasurer Tom Carr of Elmira Savings Bank. We also welcomed two new directors: Theresa Phalon of North Country Savings Bank and Steve Woodard of Alden State Bank. Thank you to our directors for their continued support and participation. All of us at IBANYS are looking forward to the coming year and continuing our work for New York community banks.

______________________________________________ 



The board also heard an update on our three newest associate members:
  • CES, which produces the biannual New York Banking Customer Experience Benchmarks. These include more than 100,000 objective reviews by households and businesses regarding the banks they use.
  • Consillarium Group, a full-service employee benefits insurance consulting firm. The firm works with companies of all sizes to develop the appropriate plan offerings for employees.
  • Transgate Solutions, a New England based network services provider, merchant services and payroll company now moving into the new York market.
We are pleased to welcome these latest additions to the IBANYS family, and look forward to working with them to provide increased value to our member banks.

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Join Us at ICBA's Capital Summit
 
Lastly, IBANYS' annual visit to Washington, D.C. takes place April 28 - May 1 during the ICBA Capital Summit. We will schedule meetings "on the hill" with members of the new York congressional delegation. New York has five new members in the delegation, and six members on the House Financial Services Committee. We need a strong showing to represent our New York industry and make our voice heard. Bring your ideas and voice to Washington by emailing me or Steve Rice. Read more about ICBA's Capital Summit.

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

- John

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2019 Meetings

Get Ready For 2019 Annual Convention!Convention19

 

SAVE THE DATE

When:

June 10-12, 2019


Where:

5218 Patrick Rd, Verona, NY 13478

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Attend One of Our Educational Meetings! Meetings2019


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

ComplianceConf

                            March 12, 2019                             March 13, 2019
    DoubleTree by Hilton                             Hilton Garden Inn
                            1111 Jefferson Road                             235 Hoosick Street
                            Rochester, NY 14623                               Troy, NY 12180

                            View Brochure                        View Registration Form




DirectorsConf
             
                            April 16, 2019                                   April 17, 2019
                   RIT Inn & Conference Center                   Hampton Inn Poughkeepsie
                       5257 W.  Henrietta Road                                   2361 South Rd.
                          Henrietta, NY 14467                            Poughkeepsie, NY 12601

                           View Brochure                         View Registration Form




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





LendingConf 

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





Banking Executive SymposiumBankExecSymposium

September 9-11, 2019
Location TBD


IBANYS' meetings provide insight into relevant issues spoken by experts in the field. They are also a great opportunity to network and earn CPE credits.

Have an idea for one of our meetings? Want to see a meeting or forum on a different subject? We want to hear from you!  Contact Linda Gregware at lindag@ibanys.net or me at johnw@ibanys.net with your thoughts and/or comments. 

IBANYS Education/WebinarsWebinars
  WebinarSchedule2019

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

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

NEW WEBINARS ADDED FOR 2019NEWWebinars19

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


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

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IBANYSWebinarsBIGSavings

2019 Webinar Series - Available Now

6 Webinars  for the Price of 5

or

10% off a 4-Part Series


Choose From The Following:

            Credit Analysis & Underwriting Series                        Regulation E-Series
                             4-Part Series                                                     6-Part Series 

                       ACH Specialist Series                            Mortgage Lending Hot Spots Series
                             6-Part Series                                                     6-Part Series

                     Board Reporting Series                                     Teller Training Series
                             4-Part Series                                                     6-Part Series

                               BSA Series                                                      C-Suite Series
                            4-Part Series                                                      4-Part Series

                          Call Report Series                                       Consumer Collection Series
                             4-Part Series                                                      4-Part Series

                               IRA Series
                             4-Part Series

________________________________________________________________

  
sandlerWebinar

Protecting Against Potentially Dangerous Decreasing Rates

When: February 26, 2019

Time: 2:00-3:00 P.M. EDT

Scott Hildenbrand, with the Financial Managers Society, will discuss the emerging theme of down risk and its impact on community banking. Tactical balance sheet repositioning, off-balance sheet hedging, and liability restructurings will be covered, among other actionable ideas.


If you have any questions, please contact your Sandler O'Neill representative or email us at bankstrategyinsights@sandleroneill.com.

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FREE WEBINAR: ICS & CDARS


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!


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Reg relief makes most reciprocal deposits nonbrokered, providing banks the opportunity to attract even more deposits. 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 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®, 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.

Numerous new banks are joining the Promontory Network. In order to give these newly on-boarded banks an opportunity to begin transacting, we have decided to extend this incentive program through March 31, 2019. 

Choose a date and time that works for you!


Government Relations
AlbanyAlbanyGR

 

Budget/Legislation Update & Its Impact On Banks

Governor Cuomo - State of the State
Reactions to Governor Cuomo's spending plan were mixed.  I n te rms of the banking industry , the Governor's State of the State indicated plans to introduce legislation to prevent abuse of confession of judgment/stop predatory merchant cash-advance loans

In the proposed state budget , Article VII Regulation of student loan servicers appear to be unchanged from last year's budget, and would require student loan servicers to be licensed by DFS, and would establish a regulatory framework for the industry in New York. The bill is necessary to implement the Fiscal Year 2020 budget. The exemption for f inancial institutions required by Dodd Frank to create subsidiaries for transfer of properties and services to such subsidiaries would be extended from June 30, 2019 to June 30, 2021.  The Governor would also eliminate the carried interest "loophole."



Jill DesRosiers Named as Governor Cuomo's New Chief Of Staff

Jill DesRosiers

Gov. Cuomo has named Jill DesRosiers as the administration's Chief of Staff. The position is separate from that of his top aide, Secretary to the Governor, held by Melissa DeRosa.
DesRosiers previously served as the governor's executive deputy secretary, overseeing the office of Intergovernmental Affairs, scheduling and operations as well as regional and constituency affairs.



NYS DFS Approves 16 Virtual Currency Charters/Licenses

The State Department of Financial Services (DFS) approved the applications of Robinhood Crypto LLC, a subsidiary of Robinhood Markets Inc., and Moon Inc. (doing business as LibertyX) for virtual currency licenses. DFS also authorized a money transmission license for Robinhood. DFS also permitted Robinhood Crypto to offer services for buying, selling, and storing seven virtual currencies, including Bitcoin, Ether, Bitcoin Cash, and Litecoin. Robinhood Crypto's parent company, Robinhood, allows U.S. based retail/individual customers to trade stocks and options on a commission-free basis through Robinhood Financial. 

"DFS continues to rapidly and responsibly respond to financial services market innovations by licensing technology-based money transmitters under New York's money transmitter law; online lenders under New York's banking law; and virtual currency exchanges under New York's financial services law." DFS has now approved sixteen charters or licenses for companies in the virtual currency marketplace.



Have You Reached Out To New York's 39 New State Legislators & 5 New Members Of   In Congress?  

There are  39 new members of the State Legislature, the largest new class in years. IBANYS has provided lists of all the new State Senators, Assembly Members and Congressional Representatives. We ask you to reach out to them to provide information on community banks. These new legislators  need to be informed and educated about New York community banks and the  essential role we play in the local and state economies. 

Please step up, reach out and play a key role in establishing new relationships. We also encourage you to join our IBANYS Government Relations Committee to assist in our advocacy and share your ideas. Your voice matters!

IBANYS mailed our outreach program to all member banks and encouraged you to meet with your new members of the State Senate, State Assembly and New York Congressional Delegation. The program materials include:
  • Talking points for your use in your meetings, emails and phone calls to introduce yourselves and to help inform them about New York's community banks.
Please let us know which state and federal lawmakers you have reached out to and update us on the results of those meetings by emailing both John Witkowski (johnw@ibanys.net) and Steve Rice (stever@ibanys.net).  


Washington, D.C.WashingtonGR



Late News:
Fed Leaves Benchmark Rate Unchanged, Vows "Patient Approach" 

The Fereral Reserve's FOMC decided to leave its benchmark interest rate target unchanged at 2.25 percent to 2.5 percent, and vowed to take a "patient" approach toward further hikes Federal Reserve Chairman Powell issued his strongest statement yet that the Fed has changed its outlook regarding interest rate hikes, noting: "The case for raising rates has weakened somewhat." He added the funds rate is in the committee'srange of a neutral rate estimate, a key measure for the Fed.



 Credit Union Rule Abandons Urban Cores

ICBA and state community banking associations joined an industry legal brief backing the American Bankers Association's appeal in its lawsuit against the National Credit Union AdministrationThe NCUA's October 2016 final rule significantly expanded the service areas in which community credit unions can do business. A federal judge last year vacated two provisions of the rule that would have defined combined statistical areas with fewer than 2.5 million people as local communities and increased the population limit for rural districts to 1 million.  ABA's appeal challenges the court's decision to leave in place a provision of the rule allowing credit unions to serve metropolitan areas without serving their urban core. The brief also urges the appellate court to uphold the lower court's ruling that the NCUA rule unreasonably defines rural districts to automatically include entire states and major metro centers.



New York's Rep. Nita Lowey Is Among Key Conferees

Nita Lowey
Now that the government has been temporarily reopened (the President signed a stopgap spending bill on Friday to keep the government funded until Feb. 15), Congress has already agreed to go to conference, setting the stage for formal negotiations over a border security package and a homeland security funding bill, with the biggest hurdle certain to be the border wall

Senate conferees include Richard Shelby (R-Ala.), Shelley Moore Capito (R-W.V.), John Hoeven (R-N.D.), Roy Blunt (R-Mo.), Patrick Leahy (D-Vt.), Dick Durbin (D-Ill.) and Jon Tester (D-Mont.)  House confereees consist of Nita Lowey (D-N.Y.) , Lucille Roybal-Allard (D-Calif.) Barbara Lee (D-Calif.), Pete Aguilar (D-Calif.) David Price (D-N.C.), Henry Cuellar (D-Texas), Kay Granger (R-Texas), Chuck Fleischmann (R-Tenn.), Tom Graves (R-Ga.) and Steven Palazzo (R-Miss.)



New Yorkers Named To Chair Key House 
Financial Services Subcommittees

From left to right: Carolyn Maloney, Greg Meeks &  Nydia Velazquez

Democrats have named their members for the various subcommittees of the House Financial Services Committee, and two New Yorkers will chair key subcommittees .
  • Rep. Carolyn Maloney (D-Manhattan) has been named to chair the Subcommittee on Investor Protection, Entrepreneurship and Capital Markets. It has jurisdiction over has jurisdiction over U.S. securities and housing finance laws and the governmental entities authorized to implement and enforce those laws, including the SEC, Financial Industry Regulatory Authority (FINRA), and the Federal Housing Finance Agency and its regulated entities Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Her fellow New Yorker, Rep. Greg Meeks, joins her on that Subcommittee, and on the Subcommittee on Monetary Policy and trade. 
  • Rep. Greg Meeks (D-Queens) will chair  the Subcommittee on Financial Institutions and Consumer Protection. It has jurisdiction over federal law governing depository financial institutions and the provision of consumer credit, and oversees all prudential banking regulators, e.g. the FDIC, Federal Reserve, nonbank financial services providers such as consumer reporting agencies, and all matters pertaining to consumer credit. Rep. Maloney and Rep. Nydia Velazquez (D-Brooklyn) are also on that subcommittee. 
  • Rep. Velazquez is also on the Subcommittee on Housing and Insurance, which oversees oversees H.U.D. (including the FHA), the Government National Mortgage Association (Ginnie Mae), the Rural Housing Service (RHS) at the U.S. Department of Agriculture and the Federal Insurance Office (FIO) at the Department of Treasury. 


How Will Ocasio-Cortez Use Her Seat On 
Financial Services Committee?

Alexandria Ocasio-Cortez
First-term Democratic Rep. Alexandria Ocasio-Cortez (D-Bronx/Queens) hoped for a seat on the House Ways & Means Committee, but instead ended up assigned to the Financial Services Committee. "City & State" notes Ocasio-Cortez's plans include digging into predatory lending and exploring options for public banking. She has placed a number of national p
riorities on her agenda that fall within the committee's scope." 

Ocasio-Cortez has also identified  "digging into the student loan crisis. . .and exploring the development of postal banking" as among her priorities.   Even if her agenda is unable to pass in this Congress, a partnership with Committee Chair Maxine Waters (D-CA) presents an opportunity to leverage the financial committee's "bully pulpit" to browbeat Wall Street. The analysis concludes: "Ocasio-Cortez's power is significantly boosted by this assignment, giving her an opportunity to target both Wall Street and put pressure on establishment Democrats."



Plans To Reform Fannie Mae & Freddie Mac
The Trump administration will reportedly work with Congress to develop a plan for reforming Fannie Mae and Freddie Mac. A White House spokeswoman said the administration plans to issue a framework on housing-finance reform "shortly" and will work with Congress as part of the process. Acting Federal House Finance Agency (FHFA) Director Joseph Otting reportedly told agency staff the administration plans to unilaterally end the conservatorship of Fannie and Freddie and capitalize the enterprises. Otting (the Comptroller of the Currency) is Acting FHFA Director pending Senate confirmation of Mark Calabria (currently Chief Economist to Vice President Pence) to lead the agency. ICBA continues working with policymakers to ensure housing-finance reform meets the needs of community banks and the customers they serve, including the need to adequately capitalize Fannie and Freddie, minimize disruptions to the system, and preserve access to the secondary market for financial institutions of all sizes.



Treasury To Borrow $1 Trillion Again To Finance Budget Deficit

According to Wall Street forecasts, Treasury is projected to borrow $1 trillion for a second straight year to finance the government's budget deficit. The bipartisan Congressional Budget Office has said the government will need to spend about $7 trillion to service its debt in the next 10 years.



The Shutdown's Impact On The Economy:
 Positive Impact Of 2017 Tax Reform Eroded

According to the White House's projections, the government shutdown that ended Friday had already eroded the positive impact of tax reform and spending increases signed by Trump in 2017.  Chairman of the Council of Economic Advisers Kevin Hassett  recently said  the shutdown reduces quarterly annualized economic growth by 0.13 percentage points for every week that it lasts. The Committee for a Responsible Federal Budget noted: "After more than four weeks, that's the equivalent of a 0.6 percent reduction in the annualized growth rate."  

The Congressional Budget Office reports that the shutdown cost the U.S economy about $3 billion in economic activity that won't be recovered. The Internal Revenue Service - unfunded throughout the five-week shutdown - will collect about $2 billion less in tax revenue in fiscal 2019, much of which will not be recouped.



Consumer Confidence Down, Economic Growth Still Strong

The Conference Board, a business research group, said Tuesday that its consumer confidence index fell to 120.2 in January, down from 126.6 in December and the lowest level since July 2017. 

U.S. consumer confidence fell to its lowest reading in a year and a half, due partially to the government shutdown and volatile financial markets. The index measures consumers' assessment of current economic conditions and their expectations for the next six months. Both declined in January. Consumers' expectations for the future dropped to the lowest point since October 2016. However, economic growth was 3.4 percent annual pace from July through September, after having surged 4.2 percent in the second quarter, and the unemployment rate of 3.9 percent was near its lowest level in five decades.



Fed Names New Head Economist

Stacey Tevlin

The Federal Reserve has announced a new head economist , naming an internal candidate to lead its crucial research division at a time of slowing economic growth in the U.S. and abroad. Stacey Tevlin , an economist with the Fed's Washington-based board of governors, will succeed David Wilcox as director of the central bank's division of research  statistics on Feb. 4. Wilcox retired after a 30-year career at the Fed.



Kraninger Building New Team At CFPB
 
Kathy Kraninger
Consumer Financial Protection Bureau Director Kathy Kraninger continues to put her own stamp on the agency, including a number of new additions to her team. This week, she announced the hiring of Andrew Duke as policy associate director for external affairs. Duke has 27 years of experience in public policy, including 20 years on Capitol Hill. He most was chief of staff to former House Financial Services Committee Chairman Jeb Hensarling. Other new hires include:
  • Delicia Reynolds Hand as Deputy Associate Director for External Affairs. She joined the Bureau in 2012 and has 17 years of experience in consumer advocacy, community development, and on Capitol Hill;
  • Laura Fiene will serve as West Regional Director. Fiene joined the CFPB at its inception in 2011 and brings more than 31 years of experience in regulating financial services companies, including 27 years dedicated to supervising and examining compliance with federal consumer financial laws and regulations.
  • Lora McCray will serve as Director for the Office of Minority and Women Inclusion. McCray's career includes 15 years of experience in diversity practice and management, most recently as the Assistant Vice President, Diversity and Inclusion at the Federal Reserve Bank of Boston.
     
  •  Marisol Garibay is Acting Chief Communications Officer. Garibay has 14 years of experience in policy communications focused on financial issues, and served most recently as Senior Advisor and Acting Communications Director at the Office of Management and Budget.
     

 

 
ICBA Advocacy Survey - Please Take A Moment To CompleteICBAAdvocacySurvey

Advocacy is everyone's responsibility. Whether you're a community bank president, employee, or director, you have a direct stake in making sure lawmakers in Congress hear your voiceTo more effectively advance our collective mission to create and promote an environment where community banks flourish, ICBA and IBANYS need your help. The following survey seeks to refine the tools and resources ICBA can offer you to better enable the important conversations and relationships required to drive positive policy outcomes for the community banking sector. Additionally, ICBA is seeking to build greater visibility of the existing personal or professional relationships that you as a community banker or director may already have with returning or new lawmakers.
 
This survey should take less than 10 minutes to complete. Please contact Ryan Hadley at ryan.hadley@icba.org with any questions regarding this survey. 





Join IBANYS In Washington, D.C. At
2019 ICBA Capital SummitICBACapSummit


The 2019 ICBA Capital Summit will be held April 28 - May 1 in Washington. Community bankers from around the nation will travel to Washington to meet with their Members of Congress in their offices "on the hill" and hear federal financial regulators to discuss key issues. We'll hear firsthand from financial and policy leaders, and influence the policy-making process. New York community bankers: Mark your calendars and hold the dates. 

IBANYS will be scheduling meetings with members of the New York congressional delegation. With a Democratic House of Representatives, a new agenda in the House Financial Services Committee, five new Representatives from New York and six New Yorkers on the House Financial Services Committee, it is more important than ever to bring our New York community bankers' voices, priorities and stories to the forefront. Email John Witkowski or Steve Rice  to confirm your participation and indicate which Representatives with whom you would like us to arrange meetings with.  

Industry Trends & Updates


Tioga State Bank's Bob Fisher Nominated as Vice Chairman of ICBA!CongratsBobFisher

IBANYS congratulates Bob Fisher, Chairman, President & CEO of Tioga State Bank, upon his being nominated as Vice Chairman of the Independent Community Bankers of America (ICBA). A fifth-generation community banker, Bob is a former IBANYS Chairman and current IBANYS board member. He chairs our state political action committee, NYSIBPAC, co-chairs ICBA's federal political action committee, ICBPAC, and ICBA's Policy Development Committee.  Last September, Tioga State Bank received national recognition as one of American Banker magazine's "Best Banks to Work For" and was honored for all that their employees do for their customers and communities. 

Other nominees included Preston Kennedy, President and CEO of Zachary Bancshares Inc. of Zachary, La. as Chairman; Noah W. Wilcox, President, CEO and chairman of Grand Rapids State Bank and its holding company, Wilcox Bancshares Inc. of Grand Rapids, Minn. as Chairman-Elect. ICBA's board of directors will vote on the nominations during the 2019 ICBA national convention, ICBA LIVE®, which will be held March 18-22 in Nashville. 

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T. Gschwender & Associates Preparing Banks' Loan Portfolios 
For The Next Economic Downturn TGschLoanPortfolioNewsletter

IBANYS' preferred partner T. Gschwender & Associates, Inc. has begun publishing  a monthly newsletter to help prepare clients' loan portfolios for the next economic downturn. The firm will be making several recommendations for clients to be pro-active in preparation for such event. Below is the first issue of the newsletter.

"By now, it's pretty much accepted that some sort of an economic downturn is coming over the next 24 months. Unfortunately, there are plenty of signs.  Below are several steps you can take to prepare. We will address each in more detail over the upcoming months.

1. Ensure you know how much risk is in the loan portfolio and where the risk resides by quantifying the risk. Then, set appropriate risk tolerance limits to ensure this risk does not increase in 2019 and 2020.

2. Pay particular attention to loans in your highest pass risk rating (Pass/Watch). These loans are typically comprised of loans where financial statements are outdated, loans approved based on projections, or loans where the primary source of repayment is weak and the loans are dependent on owners/guarantors (secondary source of repayment). Make these loans a priority for annual reviews and mitigate risk where possible.

3. Identify which income producing commercial real estate (IPCRE) properties, which you have taken as collateral, are not generating sufficient Net Operating Income (NOI) to service their debt. Take additional collateral in cases where the NOI does not, or increase your loan loss reserve for these loans.

4. Review all construction loans to determine possible impact on the projects if NOI will not stabilize before mid-2020. New construction loans should be closely scrutinized given forecasted economic environment.

5. Stress test the Debt Service Coverage Ratio (DSCR) for loans where the interest rate is set to readjust over the next two years. In addition, stress test the Loan to Value (LTV) for IPCRE loans by increasing the Cap Rate.

6. Consider selling Special Mention and Substandard credits in the secondary market if they comprise more than 25% of your capital, especially if your Workout Department is low on staffing. Get more credit individuals trained in workout procedures.
 
Stay proactive and start addressing these items now. If you would like to discuss these steps further, contact T. Gschwender & Associates or  President & CEO Bharpur "Bo" Singh.

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CBO: Shutdown Cost Economy $11 Billion Total, 
$3 Billion In Permanent Loss CBOShutdownLoss 

According to a new analysis the nonpartisan Congressional Budget Office (CBO), says that the federal government shutdown cost the economy $11 billion.  Although most of the damage to the economy will be reversed as federal workers return to their jobs, the CBO estimated $3 billion in economic activity is permanently lost. 

Overall, the CBO projected economic growth will slow this year to 2.3 percent, compared with the 3.1 percent rate last year, as the benefits of the new tax law begin to fade. The report noted: "Among those who experienced the largest and most direct negative effects are federal workers who faced delayed compensation and private-sector entities that lost business. Some of those  private-sector entities will never recoup that lost income."
 
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Vining Sparks & ICBA Securities Balance Sheet AcademyBalanceSheetAcademy


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


Contact:

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


Banking News

Further Your Education at Barret Graduate School of Banking BarretGradSchool



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

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

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

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

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Keep The Door Open For Your Small Business Customers

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

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


Spotlight Bank of the WeekSpotlightBank
M.D. Fisher
Tioga State Bank is an independent, family owned and operated
 financial institution. The bank was founded in 1864 when local business owners joined together to form a community bank to provide highly needed banking services to our communities. The bank's first president was M.D. Fisher and our current President, Robert M. Fisher is the fifth generation to run Tioga State Bank.  Tioga State Bank is still currently the only  bank headquartered in Tioga County, NY. Tioga State Bank currently has 11 locations and serves the financial needs of the Southern Tier of New York and Northern Pennsylvania.

Tioga State Bank offers a full range of consumer, business,
The Fishers
investment and financial products and personalized services tailored to meet the needs of our local community. We want to be our customers' trusted financial advisor for life. We also seek to provide additional benefits to our customers by sending them relevant, helpful information and offering expert insight to help them reach their financial goals.


Giving back and community involvement are themes that are seen throughout TSB's culture. One of Tioga's guiding principles is care for our community, which we show in many ways. Over the last 5 years, we have donated over $400,000 to local charities and organizations to help our communities thrive. We helped support the construction of a home health facility, raised  funds to make a local library handicap accessible, donated to all three local healthcare systems, funded one week of food for over 9,000 students, among many others.

We also encourage those in our local community to play a part in growing our local economy and to support local businesses. We do this through our monthly #GoLocal campaigns where we highlight local business customers on social media, social media contests, and sharing local businesses' stories and events.

Our staff is also very involved in the communities we serve. The majority of our employees belong to a community organization or charity. Each year we host a car and truck show, participate with a team of runners in many local 5k's, and walk in our local American Heart Association event. During the holiday season, staffers  hand out fresh fruit and vegetables to at-risk families. Each month we host a blue jeans for charity day with many of our employees participating by wearing jeans to the office in exchange for a donation to a local charity. 2 years ago, we also started hosting our own 5k to help benefit Cure the Blue. Cure the Blue collects funds for prostate cancer and was founded by former Buffalo Bills player, in conjunction with the Buffalo Bills Alumni Association, Booker Edgerson. Participation in and giving back to the communities we serve is at the core of who we are at Tioga State Bank.

To learn more, please visit  www.tiogabank.com .

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About Spotlight Bank of the Week

Spotlight Bank of the Week is a new feature that we have added to our website and e-newsletter. It is an opportunity to promote anything about your organization, such as fun facts, organization news, special events, etc. The Spotlight Bank of the Week will be featured on our homepage slider, e-newsletter, and our social media platforms for one week. So don't miss out on this exceptional opportunity to showcase your bank to thousands of people!

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

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


IBANYS Spotlight Is On...




ICBA TRAVELERS BANK INSURANCE PROGRAM
For 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 knows banks & diversified financial institutions. Their dedication to community banks has earned them status as an IBANYS preferred partner, and achieved the endorsement of the Independent Community Bankers of America (ICBA) as a preferred service provider.  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. 

Who is this right for?
  • Banks
  • Credit Unions
  • Diversified Financial Institutions
For additional details, contact Mark Horton:  

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:
HERE'S WHAT YOUR FELLOW NEW YORK
COMMUNITY BANKER SAYS. . .
"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?


. . . What Alexander Hamilton, John Spencer, John Dix, Charles Folger, Daniel Manning, Charles Fairchild, George Cortelyou, William McAdoo, Ogden Mills, William Woodin, Henry Morgenthau, Jr,. Robert Rubin, Timothy Geithner, Jacob Lew and Steven Mnuchin have in common? They are the 15 New Yorkers who have served as Secretatry of the Treasury. All told, there have been 77 Treasury Secretaries -- meaning that almost 20 percent of them have been New Yorkers.
 


 
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