IBANYS Weekly E-Newsletter | | |
As the summer winds on and down, IBANYS has been busy on a number of fronts.
Last week, I had the opportunity to meet with State Senate Banks Committee Chairman Sanders and other NYS leaders to discuss banking issues that impact community banks. IBANYS is working on updating programs that have been in place for years with no changes or amendments to bring them into today’s financial services environment. Our goal is to improve on existing programs that worked in the past, make adjustments and improve outcomes.
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Banking Development Districts – easing the application process and increasing the funding for new branches
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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.
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Community Deposit Program – developing a user friendly, less expensive, and flexible community deposit program to increase economic development into your communities.
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NYS DFS – discussed some of the reasons why banks are moving to a federal charter. Senator Sanders is going to schedule a meeting with DFS in the near future.
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. Senator 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.
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IBANYS' Executive Leadership Symposium is October 5-7, 2026 at the 1000 Island Harbor Hotel in Clayton, NY. It's a great opportunity for you and your leadership team to network with community bank colleagues from across the state -- and to gain valuable insights from our speakers. Bank presidents will also have the chance to discuss issues facing your organizations at our “Presidents Roundtable” panel moderated by Hartman Executive Advisors. Bring members of 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: The Deadline Sept. 18. Associate members, preferred partners and vendors: Secure your sponsorship before opportunities are gone! See below for full details on program, registration and sponsorships.
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FYI: FDIC Updates Rates & Caps. The FDIC has updated national rates and rate caps for savings accounts, interest checking accounts, money market accounts, and CDs. Updates are available on the FDIC 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!
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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!
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Thomas Grottke, CPA, Managing Partner, The NBS Group
Tom has over 40 years of professional experience working full-time in the financial services industry as a consultant, executive/board advisor, and auditor. After Crowe LLP spun-off Grottke’s business in 2023, The NBS Group continues to deliver strategic, technology, and operational consulting services, specializing in community and small regional banks and technology providers to the industry. In the last ten years, clients are from all New England states, Texas, Florida, Washington, Wyoming, Colorado, Arizona, Wisconsin, Illinois, Michigan, Indiana, Ohio, Pennsylvania, New York, New Jersey, California and Maryland, and include clients from Canada, Portugal and Panama.
Tom led the national Financial Services Performance Improvement Consulting practice at Crowe LLP from 2018 to 2023. Prior to Crowe acquiring his own bank advisory services practice in 2018, he led a northeast regional consulting practice focused on community and regional based FI providing strategy, technology, and operational consulting services from 2002 to 2018. Prior to starting his own practice in 2002, he was the Lead Advisory Services Partner on hundreds of banks, thrifts, credit unions, and investment services companies with his previous employers KPMG LLP (1995 – 2002) and Arthur Andersen & Co. (1985 – 1995). Tom’s most senior positions with his previous employers were: Managing Director at Crowe, Advisory Services Partner at KPMG and Senior Manager at AA&Co.
Tom has published numerous articles, been quoted by industry press, and spoken numerous times over the last 39 years on strategy, performance, technology, and other industry topics. He has been a speaker for Crowe, RMA, FMS, ABA, BankDirector, and the IL, IN, MI, PA, MA, NJ, NY, NH and CT state banking associations. He has been a keynote speaker with FI technology providers Abrigo, COCC, nContract, Open Solutions and at regional Fiserv conferences. He also has spoken multiple times to accounting and business organizations and students at UCONN, Clemson, Bryant, Marquette, and Southern, Eastern and Central CT State (CCSU) universities. Tom is an Advisory Board member at Marquette, School of Business, Commercial Banking Program, and assisting in the founding of an undergrad Banking Program at CCSU.
Education and Certification: Bachelor of Science, Accounting, University of Connecticut | Storrs, Connecticut
Certified Public Accountant – Connecticut (CSCPA)
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Kartik B. Athreya is director of research and head of the Research and Statistics Group of the Federal Reserve Bank of New York. He is also a member of the Bank’s Executive Committee.
Athreya has served in economic research leadership roles for over 10 years and has over two decades of experience as an economist within the Federal Reserve System. As director of research and head of the Research and Statistics Group, he is responsible for overseeing the New York Fed’s research and policy analysis in the areas of financial intermediation, financial stability, household and public policy, and monetary policy. He is also responsible for managing the collection of financial and bank structure data within the Data and Statistics Function.
Prior to joining the New York Fed, Athreya was executive vice president and director of research at the Federal Reserve Bank of Richmond, where he led economic research, regional analysis, and community outreach efforts. He also served as a senior member of the leadership team and advised the Bank’s president on matters related to monetary policy, banking, and financial markets.
Athreya’s research interests are in macroeconomics and consumer finance. His current research is focused on measuring economic risks to individuals and households, and understanding their importance for household investment decisions and financial distress. Athreya’s work has been published in a variety of academic journals, including the Review of Financial Studies, Journal of Monetary Economics, American Economic Journal: Macroeconomics, and International Economic Review. He has taught doctoral courses at the University of Virginia, and previously served as an associate editor at the Journal of Economic Dynamics and Control. He is the author of Big Ideas in Macroeconomics: A Nontechnical View (2013, MIT Press).
Athreya earned his doctorate in economics from the University of Iowa, and his bachelor’s degree in economics from Iowa State University.
| | | | Fishing Boat & Golf Refreshment Cart | | Dinner Wine - Tuesday & Golf Tee | | | Cocktail Hour - Monday & Golf Tee | | | 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. | | | |
Instructor:
Richard Hamm
President of Advantage Consulting and Training
Huntsville, AL
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Baker Market Update—Week in Review
August 14, 2026
Happy Baker Market Update — Friday Markets were relatively quiet early in the week, with inflation data largely coming in as expected. However, this morning’s sharp decline in retail sales provided an unexpected downside surprise, raising fresh questions about the strength of the consumer and the broader economy. Looking ahead, next week’s manufacturing, industrial production, and housing data will provide additional clues on economic momentum.
Author: Carson Francis, CFA , Financial Analyst
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Tax Update
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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 has indicated the process should be handled differently next year: "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.” Hochul's GOP gubernatorial opponent, Nassau County Executive Bruce Blakeman, (an ally of President Trump, who opposes the tax and may be subject to it) wants the tax killed.
Economic & Political Snapshots
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How Stablecoin Growth Could Hurt NY Small Businesses. 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.
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NY Fed: Manufacturing Up. According to the Federal Reserve Bank of New York’s Empire State Manufacturing Survey, New York State manufacturing activity increased at its fastest pace in over four years in August. Download the full report. Employment continued to pick up modestly. However, delivery times were substantially longer and supply availability continued to worsen. https://www.newyorkfed.org/survey/empire/empiresurvey_overview
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NY Fed Business Leaders Survey. Business activity held steady in the region's service sector in August, according to the Federal Reserve Bank of New York'sBusiness Leaders Survey. https://www.newyorkfed.org/survey/business_leaders/bls_overview. The headline business activity index fell eight points to 0.5. The business climate index was little changed at -25.7, suggesting the business climate was still worse than normal. Employment edged up slightly and wages continued to increase modestly. Supply availability continued to worsen. The pace of input price increases picked up slightly, while selling prices increased at about the same pace as in July. Capital spending was weak. Looking ahead, firms' optimism about the six-month outlook weakened notably. More »
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Costs Outpace Wage Growth In NY. A new Cornell University report reveals rising costs of living have outpaced wage growth for many New Yorkers, leaving families with just a 14.3% increase in purchasing power since 2007. The study highlights significant economic anxiety, a widening gender income gap, and declining trust in institutions like local government and large corporations. While the state saw recent private sector job growth, the overall labor force participation rate has slightly declined. https://www.localsyr.com/news/state-news/new-york-wages-fail-to-match-inflation-as-cost-of-living-dominates-cornell-polling/.
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Blakeman: Get Rid Of BitLicense. GOP gubernatorial candidate Bruce Blakeman is promising to scrap New York’s decade-old licensing system for cryptocurrency businesses on his first day as governor, Crain’s New York Business reports. The New York Department of Financial Services began regulating digital assets and cryptocurrencies in 2015 with BitLicense — a requirement for any person or company that uses virtual currencies to conduct business — “much to digital currency firms’ dismay.”
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Legislative & Regulatory Activities
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SEC Proposes Crypto Exemptions. The Securities and Exchange Commission is proposing two exemptions for certain crypto companies looking to raise capital. The SEC 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. SEC Commissioner Peirce said the proposal has new fundraising pathways tailored for the unique characteristics of crypto assets being sold as part of investment contracts.
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ICBA Concerns Over IRS’s EIN Procedures For Trust Officers. ICBA expressed concern over IRS procedures requiring community bank trust officers to use their personal Social Security numbers when applying for an Employee Identification Number for a trust or estate for which the bank serves as trustee, executor, personal representative, or other fiduciary. Read ICBA’s letter to the Treasury Department and IRS.
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ICBA’s WSJ Letter On Clarity Act. Responding to a “Wall Street Journal” Aug. 4 editorial that warned about the threat to community bank lending posed by allowing stablecoin yield, ICBA President & CEO Rebeca Romero Rainey said the Senate’s decision not to rush the Clarity Act through before the August recess was the right call. In a Wall Street Journal letter to the editor, ICBA said the stablecoin rewards loophole in the legislation as written isn’t a minor technical wrinkle; it is a threat to the community bank deposit base that powers local lending.
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More On Clarity Act. The Senate left for its August recess without taking up the Clarity Act despite intense pressure from the crypto industry. A new article discusses the battle over digital assets legislation and notes community banks’ success in highlighting the issue of payment stablecoin yield. In the Politico article, ICBA’s Chair said the crypto fight is the most important thing on community banks’ Washington agenda. “We are the local economic drivers of growth.” Frazier added crypto companies are not going to make local loans like community banks do.
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CFPB Won’t Publish Consumer Complaint Narratives. The CFPB Bureau announced it will no longer publish consumer complaint narratives and visualizations. The bureau said in April that consumer complaints reached an all-time high in 2025. CFPB will continue to collect, monitor, and respond to consumers’ complaints; systematically review and assess how well companies are providing responses; share consumer complaint information securely with prudential regulators and other agencies, and disclose certain data in the response to FOIA requests.
Economic & Political News
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Consumer Sentiment 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 4.3%.
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Housing Starts & Pending Home Sales Down. Housing starts decreased 12.4% in July and 13.5% from a year ago, the Commerce Department reported. Building permits increased 5.0% for the month and 3.1% from a year ago. Meanwhile, 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.
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Canadian Tariffs Delayed. President Trump announced yesterday he was delaying the 50% U.S. tariffs on $20 billion worth of Canadian imports after a last-minute deal less was reached ∆just before the sanctions were to go into effect. The announcement buys time for more negotiations and avoids, at least temporarily, another strain in already tense relations between the U.S. and Canada.
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Another 50-50 Senate? Democrats believe they have a real chance to win control of the U.S. Senate this November, having put a handful of traditionally GOP states in play. However, if they fall just short, the result could be one both parties dread — a 50-50 Senate. https://punchbowl.news/archive/81926-am/.
Special Reminder:
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