The year is flying by. We are now nearly two weeks into the "dog days" of August, and less than a month until Labor Day kicks off the fall season. Even as many of us battle the summer heat, we at IBANYS have been busy preparing for the autumn: Putting the final touches on our fall programming, and gearing up for the midterm elections and subsequent 2027 sessions of both the New York State Legislature and the Congress. Today’s newsletter includes important details and updates on all the above, and much more. We hope you take a few moments to read through it and share it with your management teams and board members.

• IBANYS' Executive Leadership Symposium is on the horizon: October 5-7, 2026 at the 1000 Island Harbor Hotel in Clayton, NY – in the heart of the beautiful Thousand Islands! Join us and experience a mix of timely educational sessions and great networking experiences. Earn up to 10 CPE credits as you gain valuable insights into today's most important banking topics. Register today Registration Deadline Sept. 18. (Register Early & Save — "Early Bird" Deadline: Aug. 14..) Secure your sponsorship before opportunities are gone! See below in today's newsletter for more details on the program, registration and sponsorship., or visit ibanys.net

• Members of Congress are back home in their districts throughout August — and, your local state legislators are out of session and back home until January. What a great opportunity to build and strengthen your relationships with your local Representatives, continue your dialogue on our priority issues... AND, emphasize the critical role your banks play in your local and the New York State economies. Invite them to your banks! ICBA has developed a guide to help. "Meetings on Main Street" guide features information on setting up, conducting, and following up on meetings with lawmakers. It includes templates and sample social media posts. Download the guide. With all 63 NYS Senate, 150 NYS Assembly and 26 NY Congressional seats on the ballot this November, this is a great time to reach out!

• IBANYS would like to congratulate The Bonadio Group and T. Gschwender and Associates for combining their companies to create a stronger full service company for community banks. IBANYS has been proud to be supported by both great organizations and we look forward to working with The "new" Bonadio Group in the future. See more details in the body of the newsletter.

FRB Issues Proposal to Amend MHC and Capital Regulations

Most Significant Proposed Revisions in 15 Years

On July 31, 2026, the Federal Reserve Board issued a notice of proposed rulemaking that would make sweeping changes to its rule governing mutual holding companies (Regulation MM) and its capital rule (Regulation Q) to provide capital treatment for mutual capital certificates and special deposits issued by mutual institutions. It represents the most significant proposed revisions to these regulations in 15 years. Our Legal Update on this proposal can be found here.

Luse Gorman, PC regularly advises financial institutions on regulatory and compliance developments of, supervisory relationships with, enforcement actions from, and licensing applications to, the federal banking and credit union regulatory agencies. If you have any questions related to this Legal Update, please reach out to your usual firm contact. 



To learn more about our firm and services, please visit our website. 

IBANYS EXECUTIVE LEADERSHIP SYMPOSIUM

🌟 Where Banking Leaders Connect, Learn & Look Ahead

2026 IBANYS Executive Leadership Symposium

October 5–7 | 1000 Islands Harbor Hotel | Clayton, NY

Mark your calendar—this is one event you won't want to miss!

• The 2026 IBANYS Executive Leadership Symposium brings together community banking leaders for three days of thought-provoking education, meaningful peer connections, and conversations about the future of our industry.

From AI and cybersecurity to economic trends, regulatory developments, technology modernization, executive leadership, and the future of community banking, this year's program tackles the issues that are keeping bank leaders focused today—and preparing for tomorrow.

And there's plenty of time to connect outside the conference room. Enjoy networking receptions and dinners, a sunset cruise on the St. Lawrence River, and optional golf and fishing activities in the beautiful Thousand Islands.

Make Your Company Part of the Experience

Sponsorship opportunities are available! Showcase your organization and connect directly with community banking decision-makers through a variety of sponsorship opportunities, including meals, receptions, the boat cruise, golf, fishing, and more. Sponsors receive valuable visibility throughout the event, including signage, website and e-newsletter recognition, podium recognition, and select complimentary registrations. Sponsorships are first come, first served.

Earn up to 10 CPE credits. Build relationships. Gain perspective. Be part of the conversation shaping the future of community banking.

Don't Just Hear About What’s Next—Be Part of It.

📅 October 5–7, 2026

📍 1000 Islands Harbor Hotel | Clayton, NY

💰 Early Bird Registration Ends August 14

Register today and secure your place at the 2026 IBANYS Executive Leadership Symposium!

Meet the Speakers

Stephen A. Ingalls, President & CEO

Catalyzer



Stephen A. Ingalls joined the organization in 2010, later served as its President from 2011 to 2015, and now leads the team as its President and CEO. In addition to his strategic leadership, Mr. Ingalls leads curriculum development, program management, and oversees program execution, often facilitating engagements.

Prior to joining Catalyzer, Mr. Ingalls led and directed operations ranging from climate research in Antarctica and Greenland to attack helicopter deployments throughout the United States, Europe, and Korea. A 1982 graduate of the United States Military Academy at West Point, Lieutenant Colonel (Retired) Ingalls holds a Master of Science in Engineering Management from the University of Kansas, a Master of Military Art and Science from the United States Army Command and General Staff College at Fort Leavenworth, and a Master of Science in Aerospace Engineering from the Georgia Institute of Technology. He is a former Instructor and Assistant Professor of Aerospace Engineering at West Point and an Instructor of Tactics at the Command and General Staff College.

Highlights of his 22-year Army career include: facilitating the Army’s analog-to-digital transition in the late-1990s; the distinction of being the first aviation officer in the Army’s history to serve as an operations officer for a 4,400-soldier brigade combat team to a major deployment at the National Training Center in Fort Irwin, California; serving as a Longbow Apache Battalion Commander – responsible to form, field, train, and lead the fourth AH64D-equipped organization and first to deploy outside of the United States; and developing a 15-year strategic plan for over 30,000 Army forces throughout Korea to address Army transformation through 2015.

He won a NASA-American Society of Engineering Educators Fellowship to Johnson Manned Spaceflight Center in the summer of 1994, where he analyzed next-generation space shuttle designs. In 2010, Mr. Ingalls was admitted into Sigma Gamma Tau, the National Honor Society in Aerospace Engineering, and he received his certification as a Project Management Professional (PMP) from the Project Management Institute in 2011.

Leaving active duty in 2004, Mr. Ingalls transitioned his uniformed experience to business, supporting manufacturing and project management functions at a Kansas City-based architectural millwork firm, serving as the Associate Director for Administration at a National Science Foundation research center on climate change, and finally working for multiple federal contracting organizations as a Program Manager and Director of Business Development before assuming a full-time role at Catalyzer in late-2017.

Today, his greatest joys are his marriage to Cara, mentoring his children through adulthood, and serving gleefully as Elijah’s, Adalynn’s, Silas’, Judah’s, and Vivienne’s grandfather.

Bruce A. Clapp, CFMP, President

MarketMatch

 Bruce Clapp is a leading executive marketer with 30+ years of marketing expertise. Mr. Clapp has served in various executive bank marketing leadership positions. Leading financial institutions with a local, regional, and national scope into new product development, brand building and strategic planning success have been the career hallmarks of Bruce Clapp. Bruce’s career includes successful growth at Bank One, Midfirst Credit Union, and Liberty Savings Bank in executive marketing and sales management roles Prior to founding MarketMatch, Bruce championed a new financial institution consulting practice that focused on customer retention, acquisition, and loyalty marketing for the nation’s largest provider of value-added marketing.

Bruce has achieved numerous awards for his work including: youngest recipient of the Bank One President’s Sales Award, The OCUL Marketing Brilliance Award, Dayton Business News 40 Under 40 Award, and the 2005 Gold Distinguished Alumni Award from Wright State University. Bruce is a regular featured speaker with the American Bankers Association (ABA) and numerous ABA state chapters. Internationally, Bruce is known as a marketing and branding expert speaking at international branding and bank marketing conferences in Dubai, Egypt, Jordan, Estonia, Kuala Lumpur, and Lithuania.

Bruce’s work has been published through the ABA’s Marketing Network Library and the ABA Bank Marketing magazine and had a recurring series on Retention and Attrition along with featured sections on Branding. Bruce’s creative approach to bank marketing has been highlighted in ABA Bank Marketing, ABA Banker’s News, US Banker, Financial Services Marketing, Advertising Review, Dayton Daily News, Columbus Dispatch, Cincinnati Business Journal, and the Dayton Business Journal.

Bruce authored two editions of Marketing Financial Services: Building a Better Bank for the American Bankers Association. The publication serves as the defacto training and education textbook for financial marketers in the banking industry as is actively used by the ABA, AIB, and all state associations. He has served on the faculty at the ABA Stonier Graduate School of Banking, the ABA School of Bank Marketing and Management, Florida Banker’s Graduate School of Banking, and the international Academy of Banking and Financial Sciences. 

He has also published a co-authored book on bank marketing and strategy entitled “Shift Happens: The New Age of Bank Marketing” and is currently completing “Bank Marketing for every Army of One” and “Buzzworthy: Creating and Sustaining Conversation about your Brand.”

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

IBANYS AUGUST WEBINARS

Associate and Preferred Partners

T. Gschwender & Associates Joins The Bonadio Group

Strategic expansion strengthens Bonadio's Advisory & Consulting services and capabilities for financial institutions

Rochester, N.Y., August 5, 2026 — The Bonadio Group, a nationally ranked IPA Top 50 CPA firm, today announced T. Gschwender & Associates (TGA), a trusted provider of credit risk management services to financial institutions, will join the firm.

The deal is expected to close on August 16, 2026. At that time, TGA will join The Bonadio Group as part of the Internal Audit Business Unit within the firm's Advisory & Consulting Service Line. The strategic expansion enhances Bonadio's ability to serve banks, credit unions and other financial institutions by expanding its credit risk management, loan review and regulatory advisory capabilities. 

"As the professional services landscape continues to evolve through consolidation, we're focused on strategic partnerships that deepen our expertise and create greater value for our clients," said Bruce Zicari, CEO and Managing Partner of The Bonadio Group. "TGA’s specialized expertise helping financial institutions navigate credit risk, regulatory expectations and portfolio management challenges is a natural complement to our existing consulting capabilities, and we're excited to welcome their talented team to Bonadio."

Founded by industry veteran Thomas Gschwender in 1984, TGA has provided independent credit risk management services to financial institutions for more than 40 years. The firm's expertise includes loan and appraisal reviews, pre-funding due diligence, problem loan management and related advisory services.

“At TGA, we’ve always been committed to helping financial institutions strengthen their credit risk management practices by providing independent assessments and actionable guidance,” said Bo Singh, President & CEO of TGA. " As financial institutions navigate an increasingly complex risk and regulatory environment, joining The Bonadio Group enables us to continue that mission while providing our clients access to broader resources, expanded expertise and additional advisory services. Just as importantly, we found a partner that shares our commitment to client service, professional excellence and long-term relationships." 

For more information on The Bonadio Group, visit www.bonadio.com. For more information on TGA, visit www.tgschwender-assoc.com.  

Piper Sandler State of the States Scorecard for the Second Quarter 2026

The quarterly State of the States Scorecard presents key economic and financial metrics for each state and the District of Columbia in a dashboard-style summary for easy reference. The metrics include year-over-year changes in the Federal Reserve Bank of Philadelphia’s Coincident Index, the Federal Housing Finance Agency’s House Price Index and Census Bureau tax revenue collections, as well as each state’s unemployment rate, revenue mix, pension funding ratio and general fund balance as a percentage of revenue.

Leading performers across the various metrics in the second quarter included Oregon, which recorded a 22.19% year-over-year gain in tax revenue; Illinois, which recorded a 7.31% year-over-year gain in home prices; and Nevada, which recorded a 3.95% year-over-year improvement in the overall economy, as measured by the Coincident Index.

The report also includes each state’s general obligation rating from Moody’s, S&P and Fitch.

Short Hills, NJ — August 5, 2026 — RelPro, the business development and relationship management solution for Financial & Professional Services, today announced the launch of the RelPro MCP Server, giving clients direct access to RelPro's relationship intelligence platform from their AI Assistants and agentic workflows. Built on the Model Context Protocol (MCP), an open standard for connecting AI models to external data and systems, the new server allows users to query RelPro's company and executive intelligence, including financial data, filings and loans, and buyer intent signals, without switching platforms.

EPG’s Q3 "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: Identifying key economic measures.
• Fixed Income Strategy: A higher-for-longer environment.
• Equity Strategy: AI remains the driver.
• ALM Strategy: Don't overthink the current environment.

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

ICBA Information

“Record Municipal Issuance: Infrastructure Necessity or Credit Warning Sign?” examines the rapid increase in municipal bond issuance and what it means for investors. The article explains that growing infrastructure needs, higher construction costs, elevated interest rates, and reduced federal support are driving municipalities to take on more debt. While higher debt is not necessarily a concern for financially strong issuers, investors should closely monitor debt levels, reserves, taxpayer concentration, tax collections, disclosure practices, and revenue-bond coverage.

Author: Dana Sparkman, CFA, Executive Vice President/Municipal Analyst at The Baker Group LP.

ALBANY UPDATE

Tax Update

• As New York City rolls out a new pied-à-terre tax on pricey second homes, the State will be watching for evidence of potential tax fraud by owners who claim they mostly live elsewhere – thereby avoiding local or state income taxes or higher car insurance premiums – but actually spend most of their time in the city, The City Reporter reports. Gov. Hochul acknowledged the concerns among NYC homeowners over the roll out of the tax by the Mamdani administration. Hochul signaled it should be handled differently next year, noting "there’s a lot of frustration the way it’s happened... “We’ll encourage City Hall to try and streamline this… It’s very complicated and we were just the facilitators.” Meanwhile, a Staten Island judge delivered an early win to homeowners challenging pied-à-terre tax tax on expensive second homes today, temporarily halting the implementation of the tax, Crain’s New York Business reports.

• The Mamdani administration is continuing to roll out the pied-à-terre tax as it waits for an appellate court to weigh in on the ongoing legal fight over the surcharge, Crain’s New York Business reports. Meanwhile, President Trump pondered whether the federal government might be able to block the surcharge. “I am looking to see if the Federal Government has any legal right to avert this disaster, before it is too late, for the millions of people who cherish New York and want to see it thrive, as opposed to becoming a filthy, crime ridden, decrepit place of mockery and scorn.” (The president’s Trump Tower penthouse is likely subject to the tax. Condos and co-ops with a market value of at least $1 million, as assigned by the NYS DFS, are subject to the surcharge, and Trump’s penthouse has an assigned market value of about $6 million.) GOP gubernatorial nominee Bruce Blakeman — a Trump ally — wants the pied-a-terre tax killed. 

Budgetary & Economic Items

• Gov. Hochul criticized the President for new cuts to Medicare, saying the end of a temporary subsidy program that has helped offset premiums for the past two years would impact roughly 1.3 million seniors across the state, State of Politics reports.

• Fairport in Monroe County is New York’s hottest housing market, and one of the top ZIP codes for homes sales in the nation, according to Realtor.com. The annual Hottest ZIP Code ranking is based on market demand as measured by the number of unique viewers per property on the website, and the number of days a listing remains active.

• New York City remains one of the nation’s most expensive places to start or operate a business — but, several major business expenses have grown at a slower rate than in competing metropolitan areas over the past decade. (According to a new report released by NYS Comptroller DiNapoli.) 

• NYC Mayor Mamdani is reportedly asking a former top executive for UBS Group, an ex-global head of investment banking at Lazard and Bank of America’s New York City president to join his administration’s new business advisory council, Bloomberg News reports.

Political News

• In a new Siena University poll released this morning -- the first major poll of likely voters this election cycle -- Gov. Hochul leads her GOP challenger Bruce Blakeman by 10 points, 49% to 39%. In June, Hochul had a 52%-32% lead among registered voters. Her 10% margin compares to a 16-point Democratic edge on the generic congressional ballot. 46% view Hochul favorably and 49% unfavorably. Blakeman had a favorable rating of 33% to 26% unfavorably. Hochul leads 64%-19%z in New York City. Blakeman leads 49%-41% in the suburbs. They are effectively tied upstate: Blakeman at 46%, Hochul at 45%. In other statewide races: 1) NYS Attorney General Tish James (D) leads GOP challenger Saritha Komatireddy by 18 points (54% to 36%); 2) State Comptroller Tom DiNapoli (D) leads GOP challenger Joseph Hernandez by 23 points (55% to 32%). https://sri.siena.edu/2026/08/12/siena-poll-of-likely-new-york-state-voters-hochul-49-blakeman-39/

• Siena Poll, Part II. 62% of voters New Yorkers said the country is headed in the wrong direction, while 31% said it's on the right track. 47% said New York State is headed in the wrong direction, and 43% said right track. On the generic Congressional ballot, New York likely voters favor Democrats 54-38%. They also gave the Democratic Socialists of America (DSA) a negative 30%-47% favorability rating. https://sri.siena.edu/2026/08/12/siena-poll-of-likely-new-york-state-voters-hochul-49-blakeman-39/

• One of the "most intriguing questions" in New York and national politics is what Rep. Alexandria Ocasio-Cortez will do in 2028, columnist Ross Barkan writes for Crain’s New York Business.



FEDERAL UPDATE

Congressional Update

• With the Senate breaking for its August recess without taking up the Clarity Act despite intense pressure from the crypto industry, ICBA President and CEO Rebeca Romero Rainey said community bankers’ persistent advocacy is paying off. While the battle over the legislation’s policies on stablecoin yield is not over, Read ICBA's message to community bankers. Media outlets including Punchbowl News cited the critical role of community bank advocacy leading to the Senate breaking for recess without a vote on the Clarity Act. A follow-up Wall Street Journal editorial details why Congress must include a robust stablecoin yield prohibition in the bill.

• A "Punchbowl News" piece entitled “Community bankers are louder than money”cited the critical role of community bank advocacy leading to the Senate breaking for recess without a vote on the Clarity Act. It details how community bankers’ mobilized to spotlight the harmful impact on local lending without adequate safeguards to bar payment on yield and interest in the legislation, while a Wall Street Journal editorial details why Congress must include a robust stablecoin yield prohibition in the bill.

• Before recessing last week, the U.S. Senate passed a stopgap spending bill to avert a government shutdown at the end of September, in a bipartisan effort to head off a major spending battle before the midterm elections, the Times reports.

• The Senate Agriculture Committee did not advance its version of the farm bill during a markup. The Agricultural Act of 2026 stalled amid disagreements over the nutrition section of the five-year bill. The committee recessed following the vote against advancing the measure. In a national news release, ICBA said eventual passage of the farm bill is achievable, warning that further modifications are needed to include guardrails on the Farm Credit System. ICBA last week reiterated the importance of sound farm policy in a letter to committee members while emphasizing the need for sufficient FCS guardrails and transparency.

Regulatory Update

• ICBA commended the CFPB's review of the TILA-RESPA Integrated Disclosure Rule and its impact on consumers, lenders, and the mortgage market. Read ICBA' letter responding to the CFPB’s request for information.

• The Financial Crimes Enforcement Network issued a final rule that permanently removes the requirement for U.S. companies and persons to report beneficial ownership information under the Corporate Transparency Act and said it will delete previously reported information by U.S. persons from the BOI database. The final rule does not remove collection requirements for banks. The agency published FAQs. ICBA has consistently called on FinCEN to amend its customer due diligence rules and withdraw its requirement that banks collect beneficial ownership information, including in a 2025 congressional statement.

• All Federal Home Loan Banks met their housing goals last year, according to the Federal Housing Finance Agency’s 2025 Mission Activities Report. FHFA said: 1. Housing goals provide an important measure of the extent to which FHLBank activities support low-income households and community banks. 2. In 2025, 99.5% of members met Community Support Program standards, which ensure FHLBank members met standards related to community lending and investment.

• The FDIC announced a new two-phase process it will use to review new deposit insurance applications intended to encourage new bank formation and accelerate the speed of the review process. The FDIC will provide de novo applicants who satisfy relevant requirements a contingent authorization within 120 days of receiving the application and approval within the subsequent 12 months following the receipt of additional information and completion of key organizational steps. When deposit insurance applicants notify the FDIC that the institution is ready to open, the FDIC will affirm that all pre-opening conditions have been met.

• The OCC said it will continue to encourage the formation of new banks and strengthen the resilience of the federal banking system. OCC said it has received 40 de novo applications in the last 18 months and, in many cases, made decisions on charter applications within 120 days of receipt of the complete application. Comptroller Gould: "For too long, regulators stifled the formation of new banks, reduced competition, and weakened the resilience of the banking system."

• Treasury and the IRS issued proposed regulations providing guidance to employers that choose to make contributions to Trump Accounts for employees or their dependents.

• America's employers "unexpectedly shed 23,000 jobs in July, the government said last Friday. Economists had anticipated a gain of 87,000 jobs. It was the first job decline since February and could suggest "bigger cracks in the labor market than previously known." Job gains were also weaker in previous months, according to new revisions: The economy added 20,000 jobs in June, 37,000 less than initially estimated, and gains in May were revised down by 66,000, to 63,000. The July jobs report was released as many Federal Reserve officials have said they are more concerned about the outlook for inflation than about the outlook for employment.

• President Trump is renewing his push to oust Federal Reserve Gov. Lisa Cook from the Fed board after a Supreme Court ruling found that his previous attempt did not afford her due process. Politico reports.

Industry Insights

• The “American Banker” (subscription required) reports that for the first time since the Great Recession, the number of brick-and-mortar bank branches in America is steadily growing. 
•