Hard to believe, but today's newsletter is our last in August! With Labor Day fast approaching and summer rapidly winding down, IBANYS is busy on a number of different fronts. Two key areas:

• IBANYS' Executive Leadership Symposium October 5-7, 2026 at the 1000 Island Harbor Hotel in Clayton, NY is a chance for you and your leadership team to network with community bank colleagues from across the state & gain valuable insights. We'll cover AI and cybersecurity, economic trends, regulatory developments, technology modernization, executive leadership, and the future of community banking. Bank presidents will have the chance to discuss issues facing your organizations at our “Presidents Roundtable” panel moderated by Hartman Executive Advisors. Bring your leadership team to experience what other banks are facing, learn from the subject matter experts and have a little fun fishing, golfing and cruising the St. Lawrence River. Register today: Deadline is Sept. 18. Associate members, preferred partners and vendors: Secure your sponsorship before opportunities are gone! For full details on program, speakers, registration and sponsorships, see below in today's newsletter.

• A Strong Start to 2027 Legislative Session: Before the next legislative session begins in January 2027, IBANYS would like to establish a plan to provide Senate Banks Chair Sanders and current Assembly Banks Chair Clyde Vanel and get off to strong start in getting bills through the legislative process. This would include current issues facing community banks that we can work on before the session starts. A few ideas were discussed of the Senator Sanders Summer Tour of banks and the meeting held recently with leaders from the senate, assembly, state comptroller’s office and NYC comptrollers’ office.  (See our Albany section below for more details.)

. . .

A Few Updates To Share:

• Community banks reported an 8.2% second-quarter increase in net income from the previous quarter, according to the FDIC’s latest Quarterly Banking Profile. Key drivers included higher net interest income (up 4.0%); noninterest income (up 7.9%), and securities gains of $139.3 million offset higher noninterest expense (up 2.3%), and provision expense (up 37.2%). Total assets increased 0.8% quarter-over-quarter and 4.8% year-over-year. Loan and lease balances grew 1.6% from the previous quarter and 5.1% from the prior year, and the quarterly loan growth was broad-based across all major portfolios except auto loans. Deposits increased 0.4% from the previous quarter and 4.6% from a year ago. The number of community banks declined by 35 to 3,818, and one community bank failed during the quarter. For full details, read the FDIC’s statement with accompanying charts. Additional charts and data are also available for download.

• . . . The overall banking industry reported a 12.0% increase in net income from the previous quarter (and was up 28.7% from a year ago.) https://www.fdic.gov/news/speeches/2026/fdic-quarterly-banking-profile-second-quarter-2026. The Deposit Insurance Fund balance increased $3.7 billion to $161.1 billion; the reserve ratio increased five basis points during the quarter to 1.48%. The number of FDIC-insured institutions declined by 41 during the second quarter to 4,238. Four banks opened, four were sold to non-FDIC-insured institutions, 36 merged with other banks, and one bank failed during the first quarter. Read the FDIC's press release: https://www.fdic.gov/news/press-releases/2026/fdic-insured-institutions-reported-return-assets-137-percent-and-net

• Community bankers can now pre-order ICBA’s Compensation and Benefits Report. Pre-orders will receive full access to the report and dashboard on Sept. 2, including: 1) Compensation data from more than 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. Participants qualify for a discount on the standard report price. Learn more.

• Congratulations to IBANYS’ state legislative counsel firm Greenberg Traurig, listed number 4 on “City & State's” top 50 New York lobbyist firms. Among those mentioned: IBANYS’ state legislative counsel Beth Garvey & colleague Deb Stevens. https://www.cityandstateny.com/power-lists/2026/08/2026-top-50-new-york-lobbyists/415527/

. . .John

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

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

Meet the Speakers

Shea Galibrieschi, Vice President, Relationship Development

Financial Services, Hartman Executive Advisors.

Shea works directly with executives of midsized financial institutions to help align IT strategies to business goals. Shea is passionate about helping banks and other financial institutions navigate the opportunities and uncertainties that technology brings. He spends time with clients to learn their needs and interests and dedicates himself to building trusting relationships that stand the test of time.

Prior to joining the Hartman team, Shea worked for CRA Partners, a subsidiary of Independent Community Bankers of America, where he helped bank executives across the Southeast and Mid-Atlantic invest in local elder abuse prevention programs. In his role with CRA Partners, he was responsible for growing and managing relationships with more than 80 customer accounts across 13 states.

Outside of work, Shea spends time golfing, running, painting, and rooting for the Memphis Grizzlies. He also enjoys traveling with his wife and spoiling his Basset Hound, Gatsby. 

Wade Barnes, Managing Director,

Financial and Professional Services,

Hartman Executive Advisors

Wade is an indispensable asset to his clients who benefit from his extensive experience working in the banking industry and expertise in using technology to solve issues ranging from operational inefficiencies and regulatory challenges, to cyberthreats. At Hartman, he works alongside financial and professional services executives to create and execute technology roadmaps and data strategies to drive growth and innovation. Wade is a highly effective, multi-disciplined leader who thrives on identifying opportunities and creating strategies for businesses to build market share and increase overall profitability.

Wade has spent most of his career in banking, starting as a teller and advancing through the ranks to the C-suite. Before Hartman, Wade was the Chief Marketing Officer at Howard Bank. In this role, he championed the importance of using technology to source new clients and expand relationships with existing clients by defining the customer journey and personalizing the banking experience. He also created and led a corporate discipline for product development, including a FinTech initiative, with a focus on processes for highly efficient internal operations and enhancements to the customer experience. Wade also held senior management roles in retail banking, marketing and e-commerce at 1st Mariner Bank, where he leveraged technology to automate business processes and used data analytics to drive strategy and execution.



Wade most enjoys spending time at home with his wife and daughter, especially when he has time to try out a new recipe for dinner. You might also find him on the golf course or making plans for his next European vacation. Wade also passionately serves on the board of directors for Meals on Wheels of Central Maryland and Maryland Council on Economic Education.

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

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

Baker Market Update—Week in Review

August 21, 2026

Treasury markets faced renewed pressure this week as rising concerns over fiscal sustainability, inflation uncertainty, and mounting government debt pushed long-term yields to multi-decade highs. While a surprise Treasury intervention provided a brief reprieve, investors remain focused on the broader forces driving rates higher and the implications for the economy and fixed-income markets.

Author: Andrea Pringle , Senior Vice President

ALBANY UPDATE

Legislative Items 

IBANYS President & CEO John Witkowski recently met with State Senate Banks Committee Chairman Sanders and other NYS leaders to discuss issues that impact community banks. Among the key areas that were addressed: Updating existing programs that have been in place for years to promote changes or amendments to bring them into today’s very different and ever-evolving financial services environment. Our goal: Improve these existing programs that worked in the past by making adjustments to improve outcomes. Among the subjects on our agenda:

• Banking Development Districts – easing the application process and increasing the funding for new branches;

• 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.

• Community Deposit Program – developing a user friendly, less expensive, and flexible community deposit program to increase economic development into your communities.

• 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.

IBANYS continues to advocate and work for community banks -- and we have a seat at the table to present our views on some very important issues to improve economic development in your communities. Chairman Sanders said he “listened and learned” during his banking tour this summer and would like to have 3 or 4 pieces of legislation ready to go at the start of 2027 session.

. . .

• A.11393 (Rules, Anderson (same as S 10579 Sanders) was delivered to the Governor last Friday, August 21, due to be signed by 9/2. This bill extends the effectiveness of the state charter advisory board. It amends A §114, Chap 62 of 2011 It extends the expiration of the State Charter Advisory Board for five additional years, through October 3, 2031. The Governor is expected to sign it in advance of the deadline. https://www.nyassembly.gov/leg/?bn=A11393&term=&Summary=Y&Actions=Y&Votes=Y&Memo=Y&Text=Y&leg_video=1#jump_to_Summary

 . . .

Economic Updates

• How Stablecoin Growth Could Impact Small Businesses In N.Y. ICBA’s interactive map shows how stablecoin growth could put small-business credit at risk. The map shows details for all 50 states on the number of small businesses that could lose credit, share of small businesses at risk, and small-business lending capacity at risk. In New York State, the map shows: 8,773 small businesses could lose credit; 1.9% of small businesses are at risk, and $4.3 billion in small business lending capacity is at risk.

• As tariff talks between the U.S. and Canada collapsed this past weekend and the new tariffs took effect, state tourism data shows Canadian visitation to New York State dropped by more than 26% in 2025. . .spending from Canadian travelers decreased by 28%. Relations between the U.S. and Canada are strained as a result of federal policy changes (e.g., shifts in border policies, a 50% tariff on certain Canadian imports) and President Trump’s comments about making Canada the 51st state. https://archive.ph/2026.08.21-095424/https:/www.newsday.com/news/region-state/canada-tourism-new-york-qf0m6g05

• On Taxes: New York City property owners have more time to seek a break from the new pied-à-terre tax after the Finance Department further extended the deadline to Oct. 6 for exemption applications, Bloomberg Law reports.

Regulatory News

• Governor Hochul announced the State Department of Financial Services issued a consumer notice warning Holocaust survivors and their families about potential fraud. DFS Acting Superintendent Asrow: “DFS will continue working with our government and community partners to protect survivors, provide trusted assistance, and help families recover assets that were wrongfully taken from them.” DFS helps recover assets deposited in banks; unpaid proceeds of insurance policies issued by European insurers; and artworks lost, looted or sold under duress. Read the DFS news release: https://www.dfs.ny.gov/reports_and_publications/press_releases/pr20260818.

 Political News

• In a new interview, Gov. Hochul discussed her five years in office, her relationship with NY House Democrats, and the role she believes NYC Mayor Mamdani will play in her reelection campaign. Politico New York reports. In a separate interview, Democratic Lt. Gov. candidate Adrienne Adams left the door open to taxing the rich, State of Politics reports.  

• Republican gubernatorial candidate Bruce Blakeman has three months before the November election to not only boost name recognition, but also appeal to upstate voters as to why he should be governor as polls show two out of five likely voters don’t know or have an opinion on him. Newsday reports. 

• The Cook Political Report released its latest analysis and rating of congressional races including several key swing districts in N.Y. COOK REPORT House Ratings Update: NY19 Likely D, NY3 Lean D, NY4 Lean D, NY17 TossUp…

FEDERAL UPDATE

Regulatory & Legislative

• 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.

• ICBA expressed support for the Senate version of the Fair Audits and Inspections for Regulators’ Exams Act (S. 5335, Moran), which would improve the bank examination environment by creating a workable appeals process. Read ICBA’s letter to Moran, ICBA said the legislation would improve the sometimes oppressive bank examination environment by creating a workable appeals process, thereby promoting trust and accountability in supervisory appeals. ICBA in 2025 also supported the House version of the bill (H.R. 8071), sponsored by House Financial Services Committee Chairman French Hill (R-Ark.).

• The SBA proposed changing the asset threshold for small banks from $850 million to $5 billion. The effort to simplify small business classification and expand access to federal programs would mean 760 additional banks would receive the regulatory relief that is tied to the SBA definition of a small business. Read what else the SBA said regarding its proposal.

• SEC Proposes Crypto Exemptions. The SEC is proposing two exemptions for certain crypto companies looking to raise capital. It proposed rules to create a framework for certain investment contracts involving crypto assets. SEC Chair Atkins said crypto asset legislation is needed to “future-proof” rules of the road for crypto assets

• The Trump administration has reportedly dismissed a dozen senior staff from Fannie Mae this week in the latest move to remake the lender. Bloomberg reports.

Digital Assets Updates

• In a new article on LinkedIn, ICBA’s SVP/Digital Assets and Innovation Policy said when deposits are displaced from a community bank, the consequences can show up as a delayed equipment purchase, a reduced farm operating line, a postponed small-business expansion, or fewer jobs on Main Street. It cites a new Aspen Institute paper that identifies potential benefits of payment stablecoins but also acknowledges a significant trade-off: stablecoin growth could draw deposits out of the banking system and impair the availability of small-business credit. ICBA notes: “That trade-off cannot be waved away as a manageable side effect of innovation.” 

• ICBA said permitted payment stablecoin issuers must be subject to rigorous, enforceable customer identification program requirements that are equivalent to those applied to banks. Read ICBA’s comment letter on an interagency proposal to establish CIP requirements for PPSIs. 

• Press coverage has noted the battle over digital assets legislation and cited community banks’ success in highlighting the issue of payment stablecoin yield. In a Politico article, ICBA said the crypto fight is the most important thing on community banks’ Washington agenda. ICBA’s Chair stated: “We are the local economic drivers of growth,” and reiterated crypto companies are not going to make local loans like community banks do.

• Treasury & Genius Act. Treasury has proposed a rule saying when the GENIUS Act becomes effective next year, entities may not issue a payment stablecoin without obtaining a federal or state license. In recent letters to the OCC, federal banking regulators and the National Credit Union Administration, ICBA called for greater interagency coordination on GENIUS Act rulemaking. Read ICBA’s letter to the FFIEC.

Latest On Credit Unions

• After another tax-paying community bank was reportedly acquired by a billion-dollar credit union, ICBA said Congress should discuss credit union tax and regulatory exemptions. Read ICBA’s national news release, ICBA President and CEO Rebeca Romero Rainey noted taxpayers will be subsidizing a deal resulting in an organization with assets approaching $2 billion, harming small businesses and reducing lending capacity.

• A recent Barron’s article highlighted the positive role of community banks in their communities in contrast to large credit unions. 

Economic Items

• Prices consumers pay for a variety of goods and services rose slightly in July, according to the Fed’s main inflation gauge. The “PCE” (personal consumption expenditures price index, the Fed’s preferred forecasting tool) increased a seasonally adjusted 0.2% for the month, putting the annual inflation rate at 3.7%, the U.S. Commerce Department reported Wednesday. The report comes with Fed officials weighing their next policy move as inflation, despite generally soft monthly readings this summer, is still well above the central bank’s 2% goal. The rate-setting Federal Open Market Committee’s next meeting is Sept. 15-16. Markets are pricing in only about a 1 in 3 probability of a move then, with the best chance for a rate hike coming in December.

• Canada plans to impose tariffs of up to 50% on roughly 700 American products in retaliation for new U.S. levies, escalating tensions between two of the world’s most closely integrated economies, The Wall Street Journal reports. After Prime Minister Carney announced Canada’s response, the Times chronicled how Canadians had his back. Canada “sees little chance of resuming talks” before the midterm elections. Bloomberg reports.

• America’s gross national debt topped $40 trillion for the first time, “an ominous milestone for an economy that sits on a shaky fiscal foundation” after decades of borrowing to pay for the rising costs of the military, social safety net programs and President Trump’s tax cuts, The New York Times reports.

• 1) Home prices increased 1.5% in June from the same time a year ago following a 1.2% annual gain in May, according to the Case-Shiller index. 2) House prices rose 0.3% in the second quarter and were up 2.1% over the past 12 months, the Federal Housing Finance Agency reported. 3)  The Conference Board’s Consumer Confidence Index decreased by 0.8 points in August to 89.4. The Present Situation Index increased by 6.8 points, while the Expectations Index of the short-term outlook fell 5.8 points. 4) New-home sales decreased 10.5% in July and were down 6.3% for the year, according to the Commerce Department. The median sales price of new houses sold in June was $393,800, 2.3% below the June price

• A typical family in the U.S. would need to allocate 34% of its pre-tax income to cover the mortgage payment for a median-priced home, according to the quarterly NAHB/Wells Fargo Cost of Housing Index (CHI). CHI results for the second quarter are based on a national median income of $106,800 and a median new home price of $410,700. 

• Consumer Sentiment, Housing Starts & Pending Home Sales Down. The University of Michigan’s index of consumer sentiment decreased 7.6% in early August and was down 12.4% from a year ago. Year-ahead inflation expectations increased from 4.2% in July to 4. Meanwhile, housing starts decreased 12.4% in July and 13.5% from a year ago, the U.S. Commerce Department reported. Also, according to the National Association of Realtors, pending home sales in July decreased by 2.3% from the prior month and were down 2.2% year over year.

• Treasury Secretary Bessent’s “economic D-Day” plan to end the war in Iran and calm down markets has Trump allies and some economists worried it won’t achieve either aim, and “offers few immediate remedies as rising costs loom over the midterms.”  POLITICO’s Scott Waldman reports with Megan. 

Political Matters

• With the GOP already facing affordability concerns for the midterms, President Trump’s “rekindled trade wars” are generating a new round of pushback, POLITICO’s Jordain Carney and Mia McCarthy write. Key states like Michigan and Maine could be hit hardest by the tariff standoff with Canada, as well as agriculture-heavy states like Iowa and North Carolina, and all critical to the GOP’s Senate majority. “We’ve got 71 days (to Election Day) and right now we don’t have a positive message to tell farm country,” warned retiring GOP Sen. Tilley (NC).

• Ten weeks before midterms, House Minority Leader Jeffries (D-Brooklyn) previewed what to expect if Democrats regain control of the House. It aligns with the priorities he has pushed on the stump: 1) Lower the cost of living; 2) Make health care affordable; 3) Take the Trump administration to task. https://www.axios.com/newsletters/axios-am-535ea6e1-13f1-4885-a12a-cac87b114a16.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosam&stream=top

One Last Reminder:

• ICBA and IBANYS encourage community bankers to set up bank visits with members of Congress during the August recess and published the Meetings on Main Street guide to help. The guide features information on setting up a meeting, conducting the meeting, and following up with lawmakers, letter templates, and sample social media posts. Download the guide. There's still time to arrange a meeting: The House returns to Washington August 31, 2026, then break for Labor Day. The Senate will return September 14. Both chambers face a compressed fall calendar with limited legislative days before the midterm elections.