THANK YOU. . .

This is our last newsletter of our current IBANYS Fiscal Year, and I wanted to say that “THANK YOU” . . .to all of our member banks, our business partners and our preferred business partners for their loyalty to an association that is just focused on community banks in NYS. We have had great leadership and commitment from all our members, and we appreciate your support. The banking industry continues to change with the introduction of AI, digital banking, digital currency and so many more new ideas that will change the way community banks look at the future. Our role at IBANYS is help our banks in any way possible through advocacy, education and support. Please let us know what other things we can do to support all community banks in NYS. Any feedback and/or comments are welcome at johnw@ibanys.net. 

IBANYS' DUES RENEWAL NOTICES GO OUT NEXT WEEK

With IBANYS’ new Fiscal Year set to begin next week (November 1st), member bank dues renewal notices and invoices will be emailed November 3rd. Please watch for them – and email me with any questions: Johnw@ibanys.net. 

IBANYS' NEW LEADERSHIP

. . .IBANYS thanks outgoing Chairman Phil Pecora (Genesee Regional Bank) for his outstanding leadership and service to our association and New York's community banking industry this past year, and to former Chairman Anders Tomson (Chemung Canal Trust) whose term expires Oct. 31.

. . .Effective Nov. 1, our new Chairman, Mark Lavarnway (Watertown Savings Bank) takes the reins, along with incoming Vice Chair Tim Dickey (Bank of Holland) and newly elected Secretary/ Treasurer Kelly Wade (Cayuga Lake National Bank). Immediate Past Chair Phil Pecora (Genesee Regional Bank) completes our Executive Committee. We thank them all for their commitment!

. . . . .

IMPORTANT INFORMATION: WEBINARS FROM IBANYS’ BUSINESS PARTNERS

NEWCLEUS & STIFEL. . .

• From NEWCLEUS: “Solutions for Success: Retain and Reward Your Key Personnel in Today's Economy” Virtual meeting:  Wednesday, November 12 – 10:00 – 11:00 a.m. What are banks doing to keep top talent motivated — and thriving? Creative strategies to reward & retain employees. From 401(k)s, SERPs, BOLI and beyond: Opportunities to make a difference for your team and bottom line. https://us06web.zoom.us/meeting/register/QmsJkUfyQgKgKJO3p3PI1Q.  

• From Stifel: "Solutions for Year-End Planning" – Tomorrow (Thursday, October 30), 1:00 – 2:00 p.m. The Fed has resumed its monetary policy easing cycle with an interest rate cut of 25 bps after a period of holding rates steady. Two more quarter-point cuts are expected by yearend & one in 2026. Depositories should benefit from interest rate cuts but persistent inflation could mean the Fed doesn’t cut rates as much as expected and dampen the current projected improvement to net interest income for next year. Hear about the current economic landscape, market conditions and actionable strategies designed to help your institution improve '26 earnings: 1) Investment Portfolio and Balance Sheet Trends: Analyzing current trends to inform future strategies; 2) Year-End Investment Strategies: How to optimize investment portfolios strategies as the year closes; 3) Funding and Swap Strategies: Tools to manage funding costs and interest rate risk; 4) Balance Sheet Positioning for 2026: Strategies to prepare for next year’s economic environment. To register, click the link below.  https://stifel.zoom.us/webinar/register/WN_o0QRNoFgT2ajpoB6bhyA3w#/registration

ALSO: PLEASE SAVE THE DATES FOR THESE TWO MAJOR IBANYS CONFERENCES:

• Our 50th Annual Convention & Trade Show at Resorts World Catskills in Monticello, New York June 8-10, 2026 -- a New Date & Location, but still our same Premier Event. Mark Your Calendars. . . and please share the news with your officers and management teams!

• Our 2026 Executive Leadership Symposium October 5-7, 2026 at 1000 Harbor Hotel in Clayton, New York.

. . . . .

FED CUTS RATES AGAIN – NO NEW ECONOMIC PROJECTIONS, NO HINTS ON FUTURE CUTS

The Fed today cut borrowing costs by a quarter of a percentage point for the second time this year, bringing interest rates below 4% for the first time since late 2022. The 25-basis point cut to its overnight lending rate brings the benchmark rate to a targeted range of between 3.75% to 4%.

• The vote was 10-2: Gov. Miran voted for a larger, half-point reduction, as he did in September; Kansas City Fed President Schmid wanted to hold interest rates steady at the previous level of 4% to 4.25 %.
• The Fed did not releasing new economic projections and provided no clear indications about their plans for future rate moves. Chairman Powell noted there were “strongly differing views about how to proceed in December” and a cut was “far from” a foregone conclusion.
• The Federal Open Market Committee noted the uncertainty accompanying the lack of data, qualifying the way it categorized broad economic conditions without the benefit of key economic reports. The federal government shutdown has halted the collection of data that goes into employment and inflation reports, official statistics tracking the jobs market, consumer prices, spending and a range of other metrics.
• The Fed also said it would stop shrinking the size of its $6.6 trillion balance sheet as of Dec. 1  amid mounting signs of strain in short-term lending markets that underpin the financial system.

Read the full statement here and see how it’s changed.

. . . . .

Is your bank fully participating in IBANYS’ committees, webinars, seminars and meetings and conferences? We encourage you to share our weekly updates and newsletters with your senior management, officers, employees and directors to ensure they are fully informed and up-to-date on the opportunities available to them. . .and on the activities and developments impacting our community banking industry. If you would like us to add any names to our distribution lists, please email them to our Director of Administration & Operations Linda Gregware Lindag@ibanys.net or to me (Johnw@ibanys.net) 

. . . Visit our website at https://ibanys.net/ to review information about IBANYS, our mission and what we do for New York community banks. We’re still the sole voice at the table representing ONLY New York community banks, as we have been since we were formed by community bankers from across the state over a half-century ago. 

Thanks for all you do for your local customers and communities, our community banking industry in New York. . . and of course, for IBANYS.

. . .John

2026 IBANYS MEETINGS

Stay tuned! As meeting agendas are finalized, details and registration information will be shared via email, the IBANYS website (ibanys.net/meetings-schedule), and in upcoming e-newsletters.

IBANYS NOVEMBER WEBINARS

ASSOCIATE & PREFERRED PARTNERS

EPG’s Q4 "The Advisor" Newsletter 

Our latest issue of “The Advisor,” framing our view and outlook for the economy, interest rates, markets, and key financial institution balance sheet management themes, is attached. 

We present our strategies in Fixed Income, Equities, and ALM to help you navigate in the current environment. 

This issue focuses on:

• Economic Environment: U.S. Economy is Stronger than Job Market Indicates.
• Fixed Income Strategy: 2025 Rate Path Looks Clear, 2026 Less So.
• Equity Strategy: Will AI Driven Momentum Continue?
• ALM Strategy: How Will Multiple Fed Cuts Impact Strategy?

We hope this writing will be helpful and welcome any questions or comments you may have. 

THE WEEK OF OCTOBER 27, 2025

The Municipal Market Monitor is a weekly overview covering key themes of the general municipal market. The update includes the AAA yield curve, municipal to treasuries ratio, fund flows, expected issuance volume and Piper Sandler’s weekly calendar, along with brief commentary, designed to provide issuers and investors insight into current market conditions.

Barret Compliance Series

November 4-6, 2025

Barret Compliance Topics:



Lending

• Fair lending/Reg B
• ATR-QM
• HPML/HOEPA
• Lending to service members
• Mortgage origination, including TRID
• Mortgage servicing
• RESPA Anti-Kickback Rule developments
• Appraisal issues
• Flood insurance- updated FAQs
• FCRA Litigation
• Fair Debt Collections Practices Act
• Cosignor vs Guarantor Issues
• Valid When Made/True Lender Doctrines
• UCC Article 9 Developments Bankruptcy update

Operations/Deposit

• Reg CC
• Reg DD
• Reg D
• Reg E
• Converting Retail Accounts and Charging Fees on Free Accounts
• Garnishments and Garnishing Federal Benefit Payments
• Privacy
• Social media and advertising
• UDAAP developments
• NACHA Rule Updates
• Wire transfer and ACH fraud issues
• Mobile/Remote Deposit
• Technology Litigation
• ADA Website Accessibility guidelines
• IRS Tax Reporting update
• Cybersecurity Risks and Mitigation

Bank Secrecy/ Anti-Money Laundering:

• FFIEC Exam Procedures and risk assessments
• Suspicious Activity Reporting
• CIP
• Beneficial Ownership
• Cannabis and Hemp
• Elder financial abuse
• Recent penalties

FEATURES:

• Day one (seven hours) covers Lending Compliance
• Day two (seven hours) focuses on Operations/Deposit Compliance
• Day three (three and one-half hours) concentrates on Bank Secrecy Act/Anti-Money Laundering
• CPE credit is available

Pricing:

Barret Compliance Series, All-Access Pass (3 Days)

In Person and Virtual (Zoom) Available: $795

Lending Compliance

In Person and Virtual (Zoom) Available: $345

Operations, Deposit, BSA, AML

In Person and Virtual (Zoom) Available: $475

BSA, AML In Person and Virtual (Zoom) Available: $225

May 17-22, 2026

Barret Graduate School

Our three year graduate program. Annual one-week residency session.

Barret Graduate School Curriculum in Brief

One week per year for three years • 130+ hours of core classroom study • Nine on-campus case studies• Eight home study problems.

Over the three year graduate program, participants will have access to 200+ hours of training.

ICBA Information

ALBANY UPDATE

LEGISLATIVE & REGULATORY UPDATES

• The Assembly Democratic Majority is publicizing the new “Secure Choice Savings Program” recently announced by Gov. Hochul as a way for those working at a job without a pension or 401k. The program was designed to be New York's retirement savings program for private-sector employees who do not have access to a retirement plan at work. According to Gov. Hochul, more than 50% of New Yorkers do not have access to a retirement plan through their employer. The new program provides an easy and simple way for workers in the state to save for the future through automatic payroll deductions, and at no cost to employers. The program allows employees to put payroll deductions into portable Roth Individual Retirement Accounts that they own and keep. https://newyorksecurechoice.com/.

• State legislators appear ready for a difficult budget cycle: Gov. Hochul cited fiscal concerns in vetoing over two dozen bills, as state leaders face less federal aid and a government shutdown. Read More. Hochul cited added affordability concerns for New York with a cumulative $34.3 billion state budget gap through 2029. Among the bills she vetoed, one would have prohibited minimum rent costs for mortgage loans – or penalized by lenders for not setting high enough rent on all or part of the real estate – because it was too vague and would create significant uncertainty in the real estate market that could increase borrowing costs and limit supply.

• Gov. Hochul announced the state will provide $30 million in additional emergency food aid to prevent hunger for millions of New Yorkers who face a cutoff of federal food assistance this weekend as the federal government shutdown continues with no end in sight, the Daily News reports. (Subscription required). Hochul warned a “train wreck” will occur if federal food benefits are halted on Nov. 1. Buffalo News

• Governor Hochul has signed a legislative package “to strengthen homeownership and protections for renters.” Hochul said the homeowner package will make homeownership more attainable through tax incentives and laws that combat home appraisal discrimination, and help tenants by extending protections on security deposits, limits on excessive fees for bounced checks, and banning collusion using algorithm-enabled rent price fixing. WGRZ.

• NYS Assemblyman Rivera (D/WFP, Buffalo) has proposed new legislation that would deny state economic incentives to employers found to have engaged in unfair labor practices under the National Labor Relations Act (Article 20 of New York labor law.) Rivera said his bill would "ensure that taxpayer-funded programs meant to spur job creation and economic development do not reward corporations that violate federal and state labor laws or retaliate against workers seeking to organize." https://nystateofpolitics.com/state-of-politics/new-york/news/2025/10/27/newly-proposed-legislation-would-punish-employers-over-unfair-labor-practices

. . . ECONOMIC & POLITICAL UPDATES

• A new mapping tool from Cornell University shows efforts to make the government work better have instead had some adverse effects. From December 24 to March 24, New York State saw a decrease of nearly 121,000 jobs, a $7.5 billion loss in federal assistance funding and a more than $8 billion loss in federal contract spending. Read More. The director of research for Cornell’s ILR Buffalo Co-Lab, which created the map, said it  shows how all the federal changes are directly impacting New Yorkers. https://nystateofpolitics.com/state-of-politics/new-york/news/2025/10/28/cornell-interactive-map

• According to a new report by NYS Comptroller DiNapoli, surging Wall Street profits will give New York a much-needed cash infusion next year, easing the state’s painful budget crunch, Crain’s New York Business reports. Profits could top $60 billion this year if current trends continue, which could help generate higher-than-expected city and state tax collections, DiNapoli said in a report. The securities industry earned $30.4 billion in the first half of 2025, a faster pace than last year, when full-year profits totaled $49.9 billion, the fourth-highest level on record. The securities industry contributes significantly to New York State and City through business taxes on profits and personal income taxes on employees’ salaries. The revenue generated could help the Governor and Legislature in the upcoming state budget process, as cope with federal cuts and a cumulative $34.3 billion state budget gap through 2029. https://spectrumlocalnews.com/nys/central-ny/politics/2025/10/23/new-york-comptroller--wall-street-profits-surge   

• Gov. Hochul responded to President Trump’s announcement he is adding an extra 10% tariff on Canadian imports after Canada ran a negative TV commercial featuring a speech by President Ronald Reagan -- https://www.governor.ny.gov/news/statement-governor-kathy-hochul-118. “President Trump’s decision to walk away from trade talks with Canada is an impulsive and costly mistake that New Yorkers will pay for through higher prices and lost opportunities. Canada is our top trading partner. Thousands of New York businesses, farmers, and border communities depend on that relationship. Tourism from Canada powers our economy from Niagara Falls to Montauk Point.” Earlier, Trump said he was halting trade talks with Canada over the ad. Trump’s rhetoric is depressing the amount of Canadian visitors to Western New York, according to the Times.

• The first pay cycle for tens of thousands of federal workers in New York is nearing as the shutdown drags on, Newsday reports. New York has 115,000 federal workers now likely impacted by the federal shutdown. As hundreds of thousands of federal workers went unpaid Friday, House Minority Leader Hakeem Jeffries (D-Brooklyn) called on House Republicans to return to Washington to negotiate a bipartisan agreement. (They have been in recess since Sept. 19 after passing a stopgap funding bill to keep the government open through Nov. 21; that bill has repeatedly failed in the Senate as Democrats demand an extension of Affordable Care Act health care subsidies due to expire at yearend. Read More

• Last week New York’s unemployment insurance benefit was boosted by $365 a week. The former maximum benefit was $504 -- the new maximum is $869 a week. The state paid off a $7 billion federal trust fund loan earlier this year providing relief to New York businesses who were on the hook for the money. State Labor Commissioner Reardon discussed the increase and her concerns regarding next year’s state budget.  https://nystateofpolitics.com/state-of-politics/new-york/politics/2025/10/17/n-y--labor-commissioner-discusses-bump-in-unemployment-insurance-benefit.

POLITICAL ITEMS

• Here’s a rundown of some of the key races throughout upstate New York next Tuesday on election day. They include important mayoral elections in Albany, Syracuse, Rochester and Buffalo, and a special election to fill a vacant Assembly seat in the North Country. https://nystateofpolitics.com/state-of-politics/new-york/politics/2025/10/27/key-races-to-watch-in-new-york-2025-elections.

• A new poll released by the Manhattan Institute, a conservative think tank, puts  Rep. Stefanik (R-North Country) one point ahead of Gov. Hochul in a potential 2026 gubernatorial race, the Times Union reports. The poll is the second conservative-affiliated poll to forecast a much different race between Hochul and Stefanik than recent surveys by the Siena Research Institute, whose September poll found Hochul with a 25-point lead. In early October, an internal poll commissioned by Stefanik’s campaign and conducted by GrayHouse, a firm that does a lot of work for Republicans, said Hochul’s lead over Stefanik was only five points.

FEDERAL UPDATE

LEGISLATIVE UPDATES

• In a letter to Senate Banking Committee leaders ahead of tomorrow’s 10 AM nomination hearing, ICBA encouraged senators to advance the nomination of FDIC Acting Chairman Travis Hill to serve as FDIC Chairman. A live feed of the hearing will be available on the committee’s website. ICBA cited Hill’s understanding of the importance of community banks in supporting local communities. Hill has been Acting Chairman since January and was sworn in as Vice Chairman in 2023. In a national news release, ICBA called him well prepared to deal with numerous policy questions, including advancing tiered regulation, challenges to the separation of banking and commerce, and ensuring any deposit insurance reforms promote depositor confidence and curb too-big-to-fail.

• ICBA continues asking community bankers to urge their senators to ensure proposed crypto market structure legislation bars all digital assets market participants from offering yield, interest, or rewards on payment stablecoins. The GENIUS Act stablecoin law prohibited payment stablecoin issuers from paying yield or interest directly to stablecoin holders, though this prohibition can be evaded by marketing the interest as “rewards” to stablecoin holders and having payments come from affiliates, exchanges, and other third parties instead of directly by the stablecoin issuer. Community bankers can use a customizable message on ICBA’s Be Heard grassroots action center to urge senators to minimize risks to the banking system and local economies by extending the prohibition to crypto exchanges and other third parties.   

• Moratorium On ILC Approvals Urged. Two Democratic senators called on the FDIC to halt industrial loan company charter approvals until Congress passes a law defining ILCs as banks. In a letter to FDIC Acting Chairman Hill, Senate Banking Committee Ranking Member Warren (D-MA) and committee member Kim (D-NJ) said: 1) In the early 2000s, the FDIC imposed a moratorium after Walmart’s proposed industrial bank raised broad public concerns, and a similar pause is needed now; 2) A moratorium would provide Congress with an opportunity to address a longstanding crack in the wall separating banking and commerce before it becomes a chasm; 3) The separation of banking and commerce promotes competition across the economy, enhances financial stability, protects economic and political systems from concentrating too much power in the hands of corporate giants, and must be preserved. ICBA told the FDIC it has a statutory duty to reject ILC applications that pose undue risks to the Deposit Insurance Fund and fail to serve the convenience and needs of their community. Read ICBA's national news release.

• ICBA and others expressed opposition to the Protecting Consumers from Unreasonable Credit Rates Act (S. 2781), to institute new government price controls for consumer loans, diminishing access to credit for individuals and small-business owners.

• Latest On Deposit Insurance Reform. ICBA released recommended principles to inform the debate in Washington. ICBA expressed support for the Main Street Depositor Protection Act (S. 2999). In a letter to Sens. Hagerty (R-TN) and Alsobrooks (D-MD), ICBA called the bill a great step to promote balanced deposit insurance coverage across the banking industry, strengthen the deposit insurance system, and support small businesses that use transaction accounts for payroll and other recurring expenses. ICBA has called on Congress to consider deposit insurance reforms in a statement for the Senate Banking Committee hearing on the issue.

REGULATORY NEWS

• ICBA and other groups also urged the Trump administration to reconsider actions to eliminate CDFI Fund resources, noting it has long stood as one of the government’s most effective market-based strategies for fostering economic opportunity and expanding homeownership in low- and moderate-income communities. In a national news release earlier this month, ICBA cited the harmful economic impact that eliminating the CDFI Fund would have on local communities and urged continued support from policymakers.

• ICBA called on federal banking regulators in the Trump administration to continue advancing ICBA’s deregulatory recommendations via the latest Economic Growth and Regulatory Paperwork Reduction Act review. In its letter to the FDIC, Federal Reserve, and OCC under the latest EGRPRA comment period, ICBA recommended ways the agencies can reduce regulatory burdens on community banks.

• A.I. Regulatory Reform, Part I. In a comment letter responding to an Office of Science and Technology Policy request for information on AI regulatory reform, ICBA urged the White House to harmonize the regulatory framework for artificial intelligence to address ambiguities inhibiting AI adoption. ICBA has told Congress while AI has the potential to help community banks meet regulatory burdens and expand access to credit, thoughtful regulation is needed to ensure innovation does not come at the expense of consumer protection or financial stability.  A recent Independent Banker magazine article offers tips for community banks that are developing policies on artificial intelligence. 

• In a letter to Treasury Secretary Bessent and OMB Director Vought, 120 House Democrats urged the Trump administration to protect the Community Development Financial Institutions Fund, saying its work is vital in supporting families, businesses, and communities that rely on this source of economic empowerment, and it's a vital source of capital and financial services to underserved communities. Last week, 105 GOP senators and representatives strongly urged the administration to continue carrying out the statutory obligations of the CDFI Fund, saying that eliminating work done by the CDFI Fund could harm the U.S. economy. ICBA and others have urged the administration to reconsider actions to eliminate CDFI Fund resources. Read ICBA's national news release,

. . .The Government Shutdown

• With the ongoing government shutdown threatening to harm local economic growth, ICBA encouraged all sides to work together to reopen the government. In a national news release, ICBA noted the shutdown is affecting critical market-based programs such as 1) The Community Development Financial Institution Fund; 2) Small Business Administration and U.S. Department of Agriculture lending programs, and 3) The National Flood Insurance Program, and said timely action to end the shutdown is imperative.

• A report by the non-partisan Congressional Budget Office said the longer the government stays closed, the more costly the pause will be. The government shutdown could cost the economy up to $14 billion, according to the nonpartisan Congressional Budget Office.

• With the government shutdown into its fifth week, the U.S. Senate and Congressional Federal Credit Unions have both seen spikes in new member applications. One is offering a $10,000 line of credit available for a 60-day draw period with zero percent interest, followed by monthly payments include 4 percent interest for the next three years. Both credit unions have expanded their eligibility well beyond Capitol Hill over the years. https://rollcall.com/2025/10/28/capitol-credit-unions-applications-during-shutdown/?utm_source=morningheadlines&utm_medium=email&utm_campaign=newsletters&utm_content=10/29/2025