Hope everyone is enjoying the transition to fall! There are many exciting things happening at IBANYS in October – our fiscal year end.  

• Next week, IBANYS is hosting our fall event - The Executive Leadership Symposium at the Harbor Hotel in Clayton, NY. This is our largest group for this event, and we are excited to host our community bankers, business partners, sponsors, and speakers on the “Banks” of the St. Lawrence River! We look forward to seeing you in Clayton!!

• We continue to build strong business partnerships with quality companies that can help community banks. KreditIQ (Agentic AI commercial loan underwriting, Bankers Cooperative Group (alternative funding for Health Benefits) and Appointment U (strategic relationship building) are all on board to work with community banks in NYS.

• IBANYS has announced a strategic partnership with KreditIQ, Inc. – a developer of an agentic AI platform for commercial loan underwriting. KreditIQ becomes an IBANYS associate member and preferred solutions partner and will work with us to bring governed agentic underwriting capability to member banks through education programming, member briefings, and structured evaluation support. KreditIQ will streamline the commercial loan process for community banks, helping banks reduce the time spent reviewing loans while staying directly involved in the review. They can be a genuinely valuable tool for community banks throughout their loan decisioning process. Contact me (Johnw@ibanys.net) or KreditQ CEO Mike Persichini (mike@kreditiq.ai) with any questions.

• Barret School of Banking is inviting New York community banks to participate in its next round of “bank sim” October 22nd. Click here to register your team or for more information In this one-day virtual simulation your team will manage three years’ worth of balance sheets, interest-rate strategies, and strategic decisions. Participants compete in teams of 5 (or so), embracing real-time results and a competitive environment crafted for learning and fun. Flexible, accessible sessions. Join us virtually—gather your team in one conference room. We’ll provide access setup and a brief Zoom check 15 minutes before kickoff. Sessions are $1,495 per team for the one-day session, packed with high-impact learning and competitive excitement. For more details or assistance, email me (Johnw@ibanys.net) or Chris Kelley, Executive Director, Barret School of Banking (chris@barretbanking.org)

• The Federal Reserve Bank of New York announced an election will be held to choose successors for the Class A and Class B director roles. The terms of those two current directors -- Class A director John H. Buhrmaster, Chairman and Chief Executive Officer of 1st National Bank of Scotia (an IBANYS board member and Past Chairman) and Class B director Arvind Krishna, Chairman, President and Chief Executive Officer of IBM -- will expire December 31, 2026. Both were elected by member banks in Group 3 (member banks with capital and surplus of $40 million or less) and their successors will also be chosen by this Group.

• We wanted to share the Comptroller of the Currency’s recent remarks at the Association of Military Banks of America’s 2026 Military Banking Summit. His full statement can be found here. Here's an excerpt on community banks: “The men and women who serve our country, and the families who stand behind them, deserve access to financial institutions that understand their circumstances. Whether it is supporting a servicemember through a permanent change of station, helping a military family purchase a home, or providing veterans with the financial services they need as they transition to civilian life, your institutions understand the communities you serve. A Community Bank Comeback must include the institutions that have made that commitment to our military community.”

• The FDIC has updated its: 1) Applications Procedures Manual, which provides direction for staff assigned to review and process applications, notices, and other requests submitted to the agency, and 2) Consumer Compliance Examination Manual, the primary resource for staff to use in support of conducting consumer compliance and Community Reinvestment Act examinations. 

. . .John

IBANYS EXECUTIVE LEADERSHIP SYMPOSIUM

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Breakfast - Tuesday

Sunset Boat Cruise

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Breakfast - Wednesday

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Lunch Tuesday & Golf Fee

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Dinner — Monday

IBANYS OCTOBER WEBINARS

Associate and Preferred Partners

ICBA Information

Financial markets faced a turbulent week as rising oil prices, stronger-than-expected economic data, and increasingly hawkish Federal Reserve commentary triggered a sharp selloff in U.S. Treasuries. The benchmark 10-year Treasury yield climbed above 5.20%, while heightened bond market volatility reflected growing expectations of additional Fed rate hikes. With inflation concerns resurfacing and geopolitical tensions adding uncertainty, investors are now turning their attention to this week's key employment and inflation reports for further clues about the direction of interest rates.

Read article

ALBANY UPDATE

Budget & Taxes

• Next year’s state budget negotiations won’t happen for months (the Governor has until Feb. 1 to submit a budget proposal to the Legislature; the state’s fiscal year begins April 1). . . but the preliminary work of putting together the budget for FY 2027-28 is underway. State Budget Director Blake Washington recently noted officials are working with state agencies to track spending, and said a $30 billion gap in the state’s financial plan in the coming years should be manageable.  https://www.wxxinews.org/new-york-public-news-network/2026-09-25/nys-towns-starting-earlier-to-get-their-priorities-in-front-of-state-officials.

• With just over a month until Election Day, Gov. Hochul and her GOP challenger, Nassau County Executive Bruce Blakeman, are making competing cases for why they are best suited to provide tax relief. The cost of living is the central campaign issue. Blakeman announced a proposal he called the single largest income tax cut in New York history. Hochul has emphasized her record of delivering relief alongside the state Legislature. https://nystateofpolitics.com/state-of-politics/new-york/politics/2026/09/29/hochul-blakeman-tax-relief

• A Staten Island judge yesterday ruled NYC Mayor Mamdani’s administration must redo its rollout of the pied-à-terre tax, “dealing a big blow to one of Mamdani’s signature achievements in Albany this year.” However, the administration plans to obtain a stay of the injunction, as the ruling could risk delaying the implementation of the tax. https://www.politico.com/news/2026/09/29/mamdani-housing-tax-ruling-01097885

Regulatory Notes

• The New York State Insurance Fund (NYSIF), the state’s largest workers’ compensation insurance provider, announced a Request for Information for financial institutions to provide information on potential resources to connect injured workers to low-cost bank and credit union accounts, with guidance from the national nonprofit Cities for Financial Empowerment Fund. The CFE Fund is collaborating with NYSIF to identify and reduce barriers NYSIF’s unbanked injured workers face in obtaining safe, affordable bank and credit union accounts. The CFE Fund, a 501(c)3 nonprofit, has led the national Bank On movement since 2015; a core part of the initiative is the Bank On National Account Standards, which define the features of “safe, affordable banking accounts with no overdraft and low or no fees.” That draws on the CFE Fund’s expertise in improving the financial stability of low-and-moderate income households by embedding financial empowerment strategies into government infrastructure and the CFE Fund’s extensive relationships with hundreds of banking partners. Acting NYSDFS Superintendent Asrow noted: “Access to a safe, affordable bank account is a critical foundation for financial stability. New York State has taken an important step by allowing state-regulated banks to offer Bank On-certified accounts, which provide affordable banking with no overdraft, inactivity or low-balance fees. We appreciate NYSIF’s support of Bank On and encourage qualifying financial institutions to join this effort to help more New Yorkers build long-term financial security.” https://www.dfs.ny.gov/reports_and_publications/press_releases/pr20260929

Economic & Political Notes

• NYS Comptroller DiNapoli said New York State paid more in federal taxes than it received in federal spending in fiscal year 2024, ending four years of positive returns fueled by pandemic aid. The state generated $353.5 billion in federal taxes and received $341.1 billion in federal spending, a difference of $12.4 billion. For every dollar paid to Washington, New York received 97 cents, compared with a national average of $1.21. New York was one of 10 states with a negative balance and ranked 45th in the difference between federal spending and taxes per resident. Federal income taxes accounted for the largest share of New Yorkers’ payments, at $9,527 per resident — 34.7% above the national average. https://www.nny360.com/top_stories/new-york-paid-12-4-billion-more-in-federal-taxes-than-it-received-in-2024/article_d92d4dbf-37c1-531c-a578-74d069deb8d4.html

• A total of 22 local governments in New York state were designated in fiscal stress for their local fiscal years ending (FYE) in 2025 // down from 23 a year ago — but the number of municipalities in the most severe category, “significant fiscal stress,” increased from four to six (including Albany), according to a report released by Comptroller DiNapoli. 

• Battle of the Polls. Less than 12 hours after the latest Siena University poll last week https://sri.siena.edu/2026/09/23/siena-poll-of-likely-new-york-state-voters-hochul-50-blakeman-41/ showed Gov. Hochul leading GOP gubernatorial candidate Bruce Blakeman by just 9 points, a new Quinnipiac University poll shows the governor leading by 19 points.

• The Cook Political Report updated its ratings for 2026 key swing congressional races, including several in New York State. They now rate the 19th CD (D incumbent Riley) as “Likely D”…3rd CD (D incumbent Suozzi) as “Lean D”…4th CD (D incumbent Gillen) as “Lean D”…17th CD (R incumbent Lawler) as a “Tossup”…and the 21st CD (vacant due to retirement of R incumbent Stefanik was moved from “solid R” to “Likely R”. https://www.cookpolitical.com/ratings/house-race-ratings

FEDERAL UPDATE

• An on-demand recording of last week’s third-quarter ICBA Community Bank Briefing webinar is now available. The quarterly session featured updates from ICBA President & CEO Rebeca Romero Rainey and members of ICBA’s Government Relations team, and highlighted the recent Clarity Act vote and other digital asset developments, as well as the congressional outlook, regulatory relief efforts, and more. Access the on-demand briefing.

• ICBA has updated its “Advocacy in Action” government relations dashboard for the fourth quarter with the latest community banking advocacy successes and priorities. It includes “hot-button” community banking advocacy issues such as CRA proposals, AI, capital treatment of mortgage lending, community development financial institutions, and more. Access the dashboard.

Congressional items

The House has adjourned until after the November midterms. The Senate is expected to follow suit this week.

• The Senate passed legislation giving merchants and banks the ability to round transactions to the nearest five-cent increment. The Common Cents Act directs the Treasury secretary to stop minting the penny and require cash transactions to be rounded up or down to the nearest five cents. Pennies now in circulation would remain legal tender. President Trump is expected to sign it. The House passed the bill in July. An Independent Banker article shares tips for addressing the end of penny production. An ICBA article  spotlights how community bankers are responding to the end of production of new pennies. 

• On a new podcast, ICBA President & CEO Rebeca Romero Rainey said the debate surrounding the Clarity Act underscored the value of community banker engagement. On Banking with Interest, she said by sharing perspectives directly with lawmakers, community bankers helped Congress better understand their role in local communities and the potential implications of digital asset legislation. She also discussed artificial intelligence, Community Reinvestment Act modernization, the need to improve transparency at credit unions, and the future of relationship banking.(Note: The podcast’s host Rob Blackwell will speak at next week’s IBANYS Executive Leadership Symposium.) 

• The latest Independent Banker magazine details how ICBA helped to ensure the 21st Century ROAD to Housing Act included important community banks provisions. The article in the September Independent Banker notes that after the Senate stripped out House-passed community banking provisions, ICBA pushed back to ensure lawmakers included the policies in the final legislation, which became law in July. The magazine is available on the Independent Banker website and via the digital edition.

Regulatory Items

• Comptroller of the Currency Gould said Monday the OCC has imposed quantitative limits on how many days examiners can spend at banks, noting: "This is not about undermining the strength of bank supervision, but making sure we're focused [on] not diluting supervision and making sure we're not burdening you with wild goose chases or criticisms about your board minutes and failing to dot an 'i' or cross a 't.'" The Comptroller did not specify the number of workdays covered by the new limits, or how they vary by bank or exam team. https://www.americanbanker.com/news/occs-gould-limiting-examiner-time-at-banks

• The Treasury Department proposed regulations for state approval or denial of stablecoin certifications under the GENIUS Act. Under the GENIUS Act, the federal banking regulators are generally tasked with the licensing, regulation, examination, and supervision of permitted payment stablecoin issuers, but qualified payment stablecoin issuers may opt for state regulation if they meet certain criteria. Comments will be accepted for 60 days after publication in the Federal Register and ICBA will be providing input.

• ICBA and other groups urged the OCC to ensure its pending application standards for issuing payment stablecoins preserve the intended use of stablecoins in payments and settlements without creating new risks to consumers. Read the joint letter to the OCC.

• The Fed proposed two rules related to establishing a regulatory framework for payment stablecoin issuers under the GENIUS Act. Read The first proposal and the second proposal. The comment period will close 60 days after publication in the Federal Register. ICBA has previously advocated for a strict interpretation of the GENIUS Act's prohibition on the payment of yield or interest by issuers and called on regulators to consider the potential impacts of payment stablecoin growth on community bank deposits and lending. ICBA has also: 1) Called on the FDIC to adopt a strict payment stablecoin framework, and 2) Urged the OCC to strengthen its proposed GENIUS Act rules to protect against stablecoin risks.

• Federal Reserve Vice Chair/Supervision Bowman said the Fed continues to tailor its approach to information technology examinations to consider risk profile and emerging threats and risks. Bowman said cybersecurity requires proactive risk management by boards and management, as well as strategic investments in people, processes, and technology, which can be burdensome and challenging for community banks.

• Comptroller of the Currency Gould said the OCC is working to reduce burden and tailor supervision for community banks and has no intention of slowing down. Gould said: 1) Sound supervision and a healthy banking system are not objectives that can be achieved by subjecting all banks to the same standards; 2) Recent OCC actions on capital, examination cycles, third-party risk management, and supervisory standards have freed up an estimated $64 billion in capital.

• ICBA shared Uniform Commercial Code updates that would allocate losses, establish standards of conduct between banks, and substantially improve community banks’ ability to mitigate payments fraud. Read ICBA’s letter to the Joint Study Committee on UCC Articles 3, 4, and 4A.

Economic & Political Items

• The University of Michigan’s final index of consumer sentiment for September declined 7% from August and was down 12.7% from a year ago. Views of current and year-ahead expected personal finances both weakened by roughly 10% this month amid rising concerns over high prices. The survey showed Americans today feel worse about the economy than they did during either the Covid-19 pandemic or the 2008 financial crisis.

• Home prices increased 1.9% in July from the same time a year ago following a 1.6% annual gain in June, according to the Case-Shiller index.House prices rose 0.3% in July and were up 2.6% over the past 12 months, the Federal Housing Finance Agency reported.

• Federal Reserve Governor Barr said further policy adjustments are likely to ensure inflation comes down.

Latest On Credit Unions 

• With a billion-dollar credit union announcing its second community bank acquisition in as many months, ICBA reiterated its call for Congress to end the federal tax exemption for credit unions over $1 billion in assets. In a post on X, ICBA noted that taxpayers are subsidizing these deals, which reduce local lending. ICBA also noted on X that the press release announcing the deal appears to reference a different credit union from a previous transaction, raising doubts about the acquirers’ attention to the communities they're seeking to serve.

• A recent Barron’s article highlighted the positive role of community banks in their communities in contrast to large credit unions. A previous ICBA data analysis shows acquisitions are harming small businesses and local communities while community banks outperform credit unions in high-poverty areas.