With Labor Day now in the rear view mirror, vacations over, a new school year getting underway, and autumn about to unfold, IBANYS remains active on a number of important matters, including: 1) IBANYS Executive Leadership Symposium, and 2) Working on our government relations policies and positions for the coming 2027 legislative session. WE NEED TO HEAR FROM YOU ON IMPORTANT TOPICS THAT YOU WANT DISCUSSED AND ADDRESSED FOR THE 2027 SESSION.

• HAVE YOU REGISTERED YET FOR THE EXECUTIVE LEADERSHIP SYMPOSIUM October 5-7, 2026 at the 1000 Island Harbor Hotel in Clayton, NY? You and your leadership team have the chance to network with community bank colleagues. . .Bank presidents will have the chance to discuss issues facing your organizations at our “Presidents Roundtable” panel moderated by Hartman Executive Advisors. . .And, we’ll have fun fishing, golfing and cruising the St. Lawrence River. Register today: Deadline is Sept. 18. . .sponsorship are almost gone! For full details on the Symposium, visit IBANYS’ website: www.ibanys.net

• HELP DEVELOP OUR AGENDA FOR THE 2027 NYS Legislative Session. Before the 2027 session, IBANYS plans to share our thoughts and priorities with Senate Banks Chair Sanders (D-Queens) and current Assembly Banks Chair Vanel (D-Queens) to be prepared for a strong start in getting bills through the legislative process. We need your thoughts, views and suggestions to ensure your priorities can be addressed. . .See below in our Albany section for more details.

. . .

 A few other matters to note:

• This month, ICBA will host an important (and free) Community Bank Briefing webinar  – a 3Q briefing on policy activity. See our Washington section for details. Register here.

• ICBA’s Compensation and Benefits Report is now available. Community bankers who order the report and dashboard have access to: 1) Compensation data from over 246 full-time and 30 part-time roles nationwide; 2) An interactive dashboard for easy analysis of 100 compensation and benefit metrics at the national, regional, and asset-size levels; 3) Exclusive insights to support recruitment, retention, and strategic planning for 2027. Learn more.

• The Financial Crimes Enforcement Network issued an alert urging financial institutions to be vigilant to digital asset investment scams perpetrated by overseas scam centers. FinCEN also published an analysis showing that 33,904 Bank Secrecy Act reports filed between September 2023 and December 2025 identified nearly $13 billion tied to suspected digital asset scams. 

• The Fed, FDIC, NCUA, OCC Office and Financial Crimes Enforcement Network issued a statement to clarify confidentiality requirements related to Suspicious Activity Reports. Read the statement: https://www.fdic.gov/news/financial-institution-letters/2026/joint-statement-suspicious-activity-report-confidentiality?source=govdelivery&utm_medium=email&utm_source=govdelivery

. . .John

IBANYS EXECUTIVE LEADERSHIP SYMPOSIUM

🚀LEAD. CONNECT. GET AHEAD.

2026 IBANYS Executive Leadership Symposium

October 5–7 | Clayton, NY

10 CPE Credits. Powerful insights. Meaningful connections.

👉 Register Today! 

Meet the Speakers

Dominic Brugno, Security+, SSCP – Analyst

Dom is an Analyst with FoxPointe Solutions, a division of The Bonadio Group. Dom focuses on internal and external auditing of information technology and information security practices and professional information security consulting. He provides services across a variety of industries, including public and private companies, financial institutions, and healthcare organizations. Dom also contributes to general consulting and vCISO engagements, assisting clients with scanning and vulnerability assessments, policy development, cybersecurity tool implementation, AI integrations, and best practice implementation. Recently, Dom has expanded his focus to include AI governance, data management consulting, and conducting technical and non-technical tabletop exercises. He holds Security+, SSCP, and M365-based certifications. 

Christopher Salone, CISA, Principal

Chris Salone is a Principal at FoxPointe Solutions, the cybersecurity division of The Bonadio Group specializing in Information Risk Management. Since joining FoxPointe in 2018, Chris has focused on both internal and external audits of information technology and information security practices, with a primary emphasis on serving financial institutions.

His expertise includes assessing the effectiveness of cybersecurity controls and providing consulting services related to regulatory and industry frameworks such as the NYS Department of Financial Services 23 NYCRR 500 Cybersecurity Requirements, the Federal Financial Institutions Examination Council (FFIEC) guidelines, the Gramm-Leach-Bliley Act (GLBA), and the NIST Cybersecurity Framework.

Chris holds a Bachelor of Science in Accounting and an MBA with a concentration in Accounting from St. John Fisher College. He is a Certified Information Systems Auditor (CISA) and a professional member of ISACA

Fishing Boat

Breakfast - Tuesday

Sunset Boat Cruise

Fishing Boat & Golf Refreshment Cart

Dinner Wine - Tuesday & Golf Tee

Refreshment Breaks

Dinner Wine - Monday

Breakfast - Wednesday

Cocktail Hour - Monday & Golf Tee

Dinner - Tuesday

Lunch Tuesday & Golf Fee

Golf Tee

General Sponsor

Cocktails on Cruise

Dinner — Monday

IBANYS SEPTEMBER WEBINARS

Associate and Preferred Partners

This virtual/live workshop is designed to provide immediate, tangible training for employees new to commercial lending and to improve skills of less-experienced commercial lenders.

ICBA Information

ALBANY UPDATE

• IBANYS continues to have “a seat at the table” to promote and discuss the needs and priorities of N.Y. community banks. We’re committed to protecting and advancing your interests, and those of the communities you serve, including fostering economic development. To prepare our agenda for the '27 NYS legislative session, IBANYS President & CEO John Witkowski has met with State Senate Banks Committee Chair Sanders (D-Queens) and other key NYS leaders. Sanders shared that he “listened and learned” during his banking tour this summer and wants to have three or four key pieces of legislation set to go when session begins in January. Among IBANYS’ proposals are to update and enhance current programs by changing/amending them to better reflect and address today’s very different banking environment and improve upon them to improve outcomes. Among our areas of interest: 

1. Banking Development Districts – Easing the application process and increasing the funding for new branches;
2. Reciprocal Deposits - We are waiting for Governor Hochul to sign the bill allowing for reciprocal deposits to collateralize funding for BDD’s. Also, increase the level of deposits from the state to seed the branch.
3. Community Deposit Program – Developing a user friendly, less expensive, and flexible community deposit program to increase economic development into your communities.
4. Regarding NYS DFS: We discussed some reasons why banks are moving to a federal charter. Senator Sanders plans to schedule a meeting soon with DFS.

. . . .

• S10688, Myrie – AN ACT to amend the banking law and financial services law in relation to opting the state out of certain provisions of the Depository Institutions Deregulation and Monetary Control Act of 1980, Public Law 96-221. Introduced August 26, 2026 and referred to Senate Rules Committee. There is no “same as” bill in the Assembly). The sponsor says it is intended to exercise New York’s express authority under Section 525 of that federal Act; restore otherwise applicable New York law to consumer credit made in New York through state-chartered institutions. For more information: https://legislation.nysenate.gov/pdf/bills/2025/s10688

• The latest (August 2026) edition of the Federal Reserve’s Beige Book is out, detailing economic conditions in the Second District (Federal Reserve Bank of New York). . . For details, including on the banking and financial services sector: https://www.newyorkfed.org/regional-economy.

• More local governments across New York are planning to override the state’s 2% property tax cap as rising costs and slower revenue growth put pressure on municipal budgets, according to a new report from State Comptroller DiNapoli. The report found: 1) 45% of the state’s cities reported plans to override the tax cap for the fiscal year ending in 2026 -- from 13.1% in 2022; 2) Nearly one-quarter of counties plan to exceed the cap in 2026, compared with 3.5% in 2022; 3) 35.5 percent of reported plans to override, while 28.6 percent of towns did so; 4) 35.5% of villages plan to override, as do 28.6% of towns. Fire districts also continue to face financial pressure: about 31.5% plan to override the cap for 2026, up from 18.6%in 2022.

• For homeowners across New York, "inequitable tax bills are alarmingly common." More than half of municipalities statewide have disparities so wide in how they tax residential property that the state considers their assessment rolls unfair, the Times Union reports. The paper examined the many inequitable local property tax systems around the state that have led to disparities in more than half the state’s municipalities.

• Gov. Hochul does NOT support a push for an upstate expansion of New York City’s new tax on high-value second homes: “I’m not interested in seeing it rolled out upstate. This was specifically intended to help the City of New York get through a financial crisis.” https://nypost.com/2026/08/26/us-news/mamdanis-stubbornly-insists-pied-a-terre-tax-will-raise-500m-even-as-nyc-winnows-number-of-properties-getting-hit/. Hochul reiterated she "doesn’t want to scare away the state’s elite” by raising taxes, and emphasized New York’s revenue relies on personal income taxes from the very wealthy. Meanwhile, Hochul criticized President Donald Trump over new retaliatory tariffs imposed by Canada on many American goods.

• Governor Hochul said New Yorkers are being "caught in the middle of the escalating trade war," and tariffs could hurt New York farmers, manufacturers and businesses that rely on trade with Canada. Meanwhile, GOP gubernatorial candidate Bruce Blakeman blamed Hochul for "the state's struggling economy," not Canada. https://www.wgrz.com/article/news/politics/hochul-blakeman-respond-to-canadas-new-tariffs-trade-war/71-9209cfcb-98d0-4ca3-ba76-0e03344ded18

• House Republicans are effectively abandoning what was supposed to be a key battleground district in New York State over concerns their candidate, NYS Sen. Peter Oberacker, is too flawed to seriously compete with Democratic Rep. Josh Riley, Axios reports.

• NYC Mayor Mamdani’s job performance rating is above water, according to aSuffolk University poll released Tuesday. 57% of respondents in the City rated his job performance as “excellent” or “good,” while 34% percent said it was either “fair” or “poor.” More than 60% said Mamdani has done better than expected so far, while 19% thought the opposite. Mamdani received some of his highest marks  from young voters. Republicans are seeking to use Mamdani as a “boogeyman” in competitive races across the state to drag other Democrats down, but in the city, at least, he remains popular. 

FEDERAL UPDATE

55 days until Election Day. The House and Senate are still in recess.

ICBA will host its third-quarter Community Bank Briefing webinar Thursday, Sept. 17 at 2 p.m. to provide the latest updates on policy developments in Washington and across the nation. The complimentary session will feature updates from ICBA President and CEO Rebeca Romero Rainey and members of ICBA’s Government Relations team. The briefing will spotlight regulatory and legislative issues from Washington, D.C. and across the U.S. Register here.

Congressional Issues

• A Senate procedural vote on the Clarity Act is scheduled for Sept. 15. ICBA is asking community bankers to urge their senators to strengthen the bill’s prohibition on stablecoin yield.  An ICBA economic data analysis shows failing to extend the prohibition on stablecoin yield via the Clarity Act could reduce community bank lending by $850 billion. ICBA's interactive map details how stablecoin growth could put small-business credit at risk. Use ICBA’s Be Heard grassroots action center to urge senators to strengthen the bill’s prohibition on stablecoin yield.

• Crypto’s Response. A 501(c)(4) linked to the crypto super PAC network Fairshake will launch a series of national ads in the coming days aimed at shoring up support for the Clarity Act. Its seven-figure ad buy includes two positive ads touting support for crypto market structure reform from prominent industry groups, and an attack ad aimed at the banking industry. https://punchbowl.news/archive/9826-am/card/11/#group-11.

• House Financial Services Chair Hill (R-Ark.), Financial Institutions Subcommittee Chairman Barr (R-Ky.), and nearly all GOP committee members unveiled the “Consumer Financial Protection Accountability and Reform Act of 2026.” The introduced legislation would reform the CFPB, bringing the CFPB into the congressional appropriations process, clarify the bureau’s authority, establish a dedicated inspector general, and require periodic reviews of major rules.Read ICBA's letters to lawmakers and congressional testimony.

• Last week’s House Financial Services Committee hearing included discussions on reducing unnecessary regulatory burdens to promote economic growth -- with a big focus on the importance of supporting community banks to foster growth. Chairman Hill (R-Ark.) said the committee's mission includes iensuring the financial system stays a source of opportunity and prosperity for people by helping families buy their first home, supporting small businesses, and empowering community banks. (Pro-community bank provisions on de novo banks, reciprocal and custodial deposits, and examination relief were in the 21st Century ROAD to Housing Act enacted in July, and the Main Street Capital Access Act reduces compliance burdens and support community bank lending.)

Regulatory Issues

• ICBA said a final anti-money laundering and countering-the-financing-of-terrorism framework must recognize the operational realities of community banks and avoid imposing expectations better suited to large organizations. Read ICBA's letter responding to the Fed's proposed amendments to AML/CFT program requirements. 

• Treasury Secretary Bessent discussed the importance of easing regulations for community banks at last week’s G20 finance ministers gathering, as reported in Axios.

• The American Banker (subscription required) says the OCC and FDIC's move to narrow bank supervisors' ability to flag unsafe or unsound practices would give banks more discretion over how they manage supervisory risks — but with that flexibility comes greater responsibility for addressing small problems before they become big ones. The Banker also notes debit cards and biller sites have become popular for bill payment, creating competitive risk for banks.

• Compliance burden key barrier to cannabis banking, GAO finds. From the American Banker (subscription required): Banks say the cost and complexity of anti-money laundering compliance — including enhanced due diligence and filing suspicious activity reports — is a major barrier to serving cannabis-related businesses. https://www.americanbanker.com/news/compliance-burden-key-barrier-to-cannabis-banking-gao-finds?utm_campaign=NL_AB_Daily_Briefing_09092026&position=4&utm_source=newsletter&utm_medium=email&campaignname=NL_AB_Daily_Briefing_09092026&oly_enc_id=6022C2600790I8Z

Economic & Political Items

• Consumer credit increased 4.2% in July, the Federal Reserve reported. Revolving credit, which includes credit card spending, increased at an annual rate of 2.5% while nonrevolving credit, such as auto and student loans, increased 4.8%. 

• The NFIB’s Small Business Optimism Index decreased 1.1 points in August to 98.7, staying above its 52-year average of 98. The Uncertainty Index fell 2 points to 89, well above its historical average of 68.

• Tariff War Escalates. Canada has retaliated to President Trump with tariffs in an escalating trade war with the U.S. The new tariffs hit hundreds of American products, including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment, at rates of 15%, 25% or 50%. Read more. 

• Nonfarm employment increased by 162,000 jobs in August and the unemployment rate was unchanged at 4.1%, according to the U.S. Labor Department.