May 22, 2019


In This Issue: 
Message From The President

By John Witkowski, President & CEO
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IBANYS Testifies At Assembly Hearing On 
Credit Unions & Public DepositsIBANYSTestfies


On Monday, May 20, IBANYS testified in Albany on behalf of New York's community banks at a Joint Hearing of the New York State Assembly Committees on Banks and Local Governments. (The full transcript will be available soon at www.ibanys.net.) The hearing was to consider allowing credit unions to accept public deposits (state and municipal deposits). Banks Chairman Ken Zebrowski (D-Rockland County) and Local Government Chairman Fred Thiele Jr. (D-Suffolk County) presided.

IBANYS was represented by Chairman Tom Amell, President & CEO, Pioneer Bank; Industry consultant Lawrence Heilbronner-Kolthoff (who spent 21 years as CFO of Canandaigua National Bank and Trust Company, and was also a Director); Kevin Klotzbach, EVP & Senior Financial Advisor of Five Star Bank who also served as CFO and Treasurer, and lastly myself. 

Larry provided the Committees with an overview of New York's community banks and their involvement in municipal deposits. He noted that  137 community banks in New York State (those with less than $10 Billion in assets) include commercial banks and savings banks, who hold a combined $193 Billion in assets, approximately $150 Billion in deposits, and account for 94% of all banks in the state and 18% of assets and deposits. Nearly 100 community banks hold approximately $12.2 billion in municipal deposits, representing approximately 45% of all municipal deposits of all banks in New York State. For a large number of smaller institutions, municipal deposits represent a significant source of funds to make loans and invest in municipal bonds. Municipal deposits account for nearly 10% of core funding for community banks.

Next, Kevin provided insight and specifics into how allowing credit unions into the business would impact an individual bank's profitability and bottom line. In many small towns and villages across New York, community banks are the only financial institutions operating branches. Should community banks lose access to core funding provided by municipal deposits to unfair competition, these communities will have limited options, which would be economically detrimental.
 
As we know, allowing credit unions to accept these deposits removes taxable income from New York State. There is no resulting benefit for the communities or the state since credit unions will not make more loans than can already be made. Some banks may find it no longer economically viable to continue and will have to sell, merge, or go out of business. It is not competition to which community banks object; rather, it is the unfair competition. The playing field should be made level and include all.
 
One thought on levelling the playing field would be to allow credit unions to enter the municipal deposits business only by creating taxable commercial bank subsidiaries, as savings banks must do. We noted this would protect against a loss of NYS tax receipts or risks to the economic viability of our communities. Another option would be to allow all regulated depository financial institutions (commercial banks, savings banks, credit unions) to accept municipal deposits, and make the net income from these activities fully tax-exempt.
 
Chairman Amell wrapped up IBANYS' testimony by effectively contesting a number of statements made by the credit union representatives as factually incorrect. He summarized the reality that allowing tax-exempt credit unions to accept public deposits would have a serious negative impact on community banks' profitability and ability to continue to serve the needs of our local customers and communities throughout the state. 

The Committees very much appreciated IBANYS' providing the facts behind our testimony, and our answering previously unanswered questions. 

IBANYS members: Write to the members of the State Assembly and Senate Banks and Local Government Committees to express your opinions. See how to do so in our Albany Government Relations article below.  We'll keep you informed of further developments as they unfold. 

Thanks to those who testified so well on our behalf, and to all the IBANYS members who supported our effort with their input, information and legislative outreach on this issue.

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This week, IBANYS held our annual Lending Conference in Watkins Glen, New York 
- co-sponsored for the fourth straight year by IBANYS' preferred partner T. Gschwender & Associates The conference brought together New York community bank Commercial Loan Officers, Consumer Lending Credit Officers, Mortgage Officers, Loan Support Personnel, and Senior Management team members and featured expert speakers on issues facing the lending environment, both short and long-term.

The presentations examined such subjects as banking and the economy, stress testing, CRE lending, balance sheet lending and many additional timely topics. The agenda included:
  • The Current State of Lending - Stephanie Butler, Director of Advisory Services, Baker Hill
  • Risk Rating: The Cornerstone of Credit Risk Management - Alison Trapp, Director of Client Education, Abrigo 
  • New Trends in Bank Partnerships With Alternative Leaders - Steven Cohen, President, Excelsior Growth Fund
     
  • C&I and Balance Sheet Lending Strategies for the Latter Stages of the Business Cycle - Craig Poms, Regional Senior Vice President of Sales, LSQ Funding
  • Hybrid Asset Based Lending: Controls Are Necessary - Robert R. Reuter, Managing Director, Executive Editor, CEIS Review, Inc.
  • Positioning Your Bank for Success with the FHLBNY's Affordable Housing Program (AHP) - Daniel Randall, Deputy Community Investment Officer, Office of the Chief Bank Operations Officer, Federal Home Loan Bank of New York (FHLBNY)
  • Banking Needs to be Something You Do, Not a Place You Do It. It's Time to Think Outside the Branch - Andy Papadopoulos, CEO, CloudBnq
     
  • Equipment Leasing: A Market Opportunity for Banks - Henry (Jay) D. Waters, Jr., Executive Vice President, Trigen Leasing
Presentations will be available tomorrow, Thursday, May 22.
 
Thanks to our preferred partner, Bharpur "Bo" Singh and T.Gschwender & Associates, for once again co-sponsoring the conference, and to our associate member, the Federal Home Loan Bank of New York, for their generous support of our dinner. 

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2019 Meetings

Attend One of Our Educational Meetings! Meetings2019


Our 2019 Meeting dates and locations are now available! These educational conferences cover various subjects that are important within the community banking industry, spoken by the experts. T hey are also a great opportunity to network and earn CPE credits. Here is what we have planned for 2019:


Banking Executive SymposiumBankExecSymposium

September 9-11, 2019
200 Riverside Drive
Clayton, NY 13624

CPE Credits Available  = TBD

__________________________________________________________________

Have an idea for one of our meetings? Want to see a meeting or forum on a different subject? We want to hear from you! 
Contact Linda Gregware or John Witkowski with your thoughts and/or comments.

2019 Annual ConventionConvention19

Get Ready For 2019 Annual Convention!

 

SAVE THE DATE

When:

June 10-12, 2019


Where:

5218 Patrick Rd, Verona, NY 13478


 Brochure                    Registration Form



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Hotel InformationConventionHotel


Arrival Date: Monday, June 10, 2019
Departure Date: Wednesday, June 12, 2019


Each attendee must make their own reservations by calling the hotel directly at
1-800-771-7711.  All individual reservations will require one night's room deposit (including applicable taxes and surcharges) or a valid credit card to guarantee the reservation. Single/double occupancy is available in a Tower Room or a Junior Suite. Check in 3 p.m., check out 11 a.m. Reservations received after this date accepted on a space and rate availability basis and cannot be guaranteed at the conference rate. View full information on the hotel and booking. 

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Convention Favorites Are Back!ConventionFavoritesPAC


Six-Minute Drill 

For our 2019 Annual Convention, IBANYS is continuing with a favorite-the 6 minute drill.  This convention favorite offers our IBANYS preferred providers the opportunity - from the podium - to take a brisk six minutes and showcase their firms, products and services, and to demonstrate exactly what they can do to help New York community banks.


Thank you to our 6 minute drill sponsors!


PAC Silent Auction


Our PAC Silent Auction returns! This a wonderful opportunity to help our industry stay competitive in the political process in Albany by supporting IBANYS' state political action committee, NYSIBPAC. 

The PAC contributes to New York State candidates and officials who understand and support the vital role community banks play in our local and state economies, as well as our communities.   Donate a gift today! View full information on the PAC Silent Auction here or download the PAC Silent Auction form to submit an item. 

Need gift ideas?
View our video from last year's Convention for suggestions!

There is also a recently released video for this year's PAC Silent Auction that can provide additional gift ideas. Check out items that have been donated so far:


These are just some of the many items that will be available at the PAC Silent Auction. Don't miss out on the fun and register to attend or donate an item today!

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Sponsorship & Exhibitor InformationExhibitorSponsorshipConvention


Demonstrate your support for community banking by becoming a sponsor or exhibitor at our Annual Convention! Our Convention Trade Show provides the opportunity for exhibitors to discuss their products and services with attendees, while also providing something that is unmatched in today's digital age: face-to-face interaction.

THERE'S ONLY 15 SPACES LEFT!

IBANYS'  exhibitor trade show b egins Monday, June 10 at 5:30 p.m. and concludes Wednesday, June 12 at 11:00 a.m. View booths available, along with full exhibitor information. Or download the exhibitor registration form here


Becoming a convention sponsor gives your organization the chance to show its continuing support for community banking in New York, and to be recognized in our printed materials, signage and from the podium. Our Convention has various sponsorships available, including bronze silver, gold, and platinum sponsorships. Page 9 of our Convention brochure lists sponsorships available and what is included.

These two important opportunities give your organization a chance to both present your firm's products/services and show your support for community banking while networking with individuals who all value one common thing: the power of community banking.

Please take a moment to carefully review, and act soon to secure both your exhibitor booth location for the trade show and the event/activity you wish to sponsor.

Please note:  Both exhibitor space and sponsorships will be assigned on a first come, first served basis.
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EntertainmentEntertainmentConvention



Golf - Monday, June 10 at 10:30 a.m.
Paint & Sip - Monday, June 10 at 10:30 a.m.
After-Dinner Party & The Beadle Brothers Band - Tuesday, June 11 at 9:00 p.m.

The 2019 Annual Convention has various recreational activities to enjoy during your down time. Beginning on Monday, June 10 at 10:30 a.m., registrants can enjoy golf at    Kaluhyat Course   with an 11:00 a.m. shotgun start or a Paint & Sip with mimosas and brunch. If you are interested in attending one of these two events, please be sure to  mark it on your registration form or exhibitor registration form

At the conclusion of Tuesday evening's  PAC Silent Auction  and dinner, attendees can enjoy  The Beadle Brothers Band  at 9:00 p.m. at the  Tin Rooster , located inside of Turning Stone. No additional sign-ups or fees are required to attend the show, as it is part of our After-Dinner Party on Tuesday evening.

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SpeakersConventionSpeakers

Bart Smith
Managing Director
Performance Trust Capital Partners

Drawing on 33 years of experience in banking, Mr. Smith serves as an expert resource in bank policy and regulatory matters.

Prior to joining  Performance Trust, Bart Smith began his career in 1985 as an Assistant Examiner in the FDIC's Houston, Texas Field Office. He received his Commission as an Examiner in 1989 and was promoted to Senior Examiner in 1991. During his tenure in Texas, Mr. Smith was instrumental in the examination and resolution of several large banks and savings and loans. 

In 1992, Mr. Smith accepted a Review Examiner position in the New York Regional Office, where he worked primarily with large multinational institutions. In 1997, he was promoted to the Field Supervisor position in the Baltimore, MD where he had coverage of all field examination activities in Maryland and the District of Columbia. Read full bio.

Mr. Smith will be presenting on Tuesday, June 11 at 12:45 p.m. with his presentation "Crisis and Response: How FDIC History Could Impact Your Institution".



Patrick Dix
VP - Public Relations Manager
SHAZAM

Patrick Dix is a seasoned media professional and the leader of SHAZAM's public relations efforts. With a 25-year career as a broadcast journalist, he is a veteran news anchor and reporter. He has received recognition for outstanding reporting with awards from The Society of Professional Journalists, The William Randolph Hearst Foundation and the Midwest Broadcast News Association.

Prior to joining SHAZAM, Mr. Dix spent the majority of his career as an anchor of the #1 morning newscast on WHO-HD in Des Moines. During his tenure at the station, he covered five Iowa Caucus cycles, city and county government and countless stories about Iowa weather including two major floods.  Read full bio.

Mr. Dix will be presenting on Tuesday, June 11 at 1:41 p.m., with his presentation "Creating Your Social Media Mix".

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These Community Banks Are Registered - Are You?


Registrations are coming in fast for the 2019 Annual Convention! Several community banks from across the state have already registered. Looking to join them? Now is the time! Register as a participant or exhibitor to secure your spot. You can also get involved by becoming a sponsor or donating an item to the PAC Silent Auction. Don't wait! Download the brochure to register for one of the most exciting New York community banking events of the year!
IBANYS Education/WebinarsWebinars
  WebinarSchedule2019

The 2019 Webinar Calendar is now available! The Independent Bankers Association of NYS (IBANYS) partners with CBWN to bring you more than 150 webinars each year covering compliance, lending, regulations, security, operations, new accounts, collections, fraud, security and other topics. Even better, each time you purchase a webinar, you support IBANYS, because a portion of your registration comes directly to us. Thank you!  

You can view the 2019 Webinar Schedule here or by category here. In addition, CBWN has made some recent updates to provide better service to its consumers. Unfortunately, some changes may have caused you to miss important webinar announcements. Please read the IBANYS letter to view the updates and ensure that you do not miss another webinar.

NEW WEBINARS ADDED FOR 2019NEWWebinars19

CBWN has added more than 140 webinars to the IBANYS webinar calendar, covering all the essential topics. Start the new year off right by gaining the knowledge and tools to make 2019 the best year yet! 


CBWN and IBANYS thank you for your continued support of the education in the community banking industry. 

Government Relations
AlbanyAlbanyGR

  

IBANYS Testifies At Assembly Hearing on
Credit Unions & Public Deposits

A s we stated above in John Witkowski's President's Message, IBANYS testified in Albany this past Monday  on behalf of New York's community banks at a Joint Hearing of the New York State Assembly Committees on Banks and Local Governments. (View the full transcript)  The hearing was to consider allowing credit unions to accept public deposits (state and municipal deposits).  IBANYS was represented by Chairman Tom Amell, President & CEO, Pioneer Bank; Industry consultant Lawrence Heilbronner-Kolthoff (who spent 21 years as CFO of Canandaigua National Bank and Trust Company, in addition to serving as a Director); Kevin Klotzbach, EVP & Senior Financial Advisor of Five Star Bank, who also served as CFO and Treasurer, and IBANYS President & CEO John Witkowski.

IBANYS members: Write to the members of the Assembly and Senate Committees on Banks and Local Government to share your own bank's perspective, and to tell them the impact of allowing credit unions into the municipal deposits business would have on your bank and your community. 

You can access the committee lists at:

NYS Assembly                   NYS Senate



A Rundown Of Recent Legislative Activity

Recent legislative introductions:


  • S.5880 (Sanders), "The New York State Loan Shark Act," would cap the annual percentage rate of interest/APR at 15% for credit cards and consumer loans.
  • A.7668 (Seawright)/S.6100 (Sanders) extends the law relating to permissible fees in connection with open end loans, currently set to expire in June 2019, until June 2021.
  • S.5721 (Comrie) would mandate that businesses offer at least two years of identity theft prevention and mitigation services after a security breach involving an individual's social security number. Businesses operating under financial hardship would have exemptions. There is currently no Assembly companion bill.
Among Bills of Interest On Committee Agendas: 

Assembly Codes Committee: 
  • A.1931 (Zebrowski)/S.982 (Breslin) would require banking institutions maintaining checking accounts for customers to shall either pay checks in the order received or from smallest amount to largest.
  • A.2611-B (Dinowitz)/S.2884-B (Sanders) would prohibit the disclosure or use of consumer credit history in hiring, employment and licensing determinations. (Employers who must utilize credit history pursuant to state or federal law would be exempt.) The legislation is on the Senate floor.
  • A.5294 (Crespo)/S.2302 (Kavanaugh) would prohibit a licensed lender or a consumer reporting agency from using the credit scores of members of an individual's social network to determine the credit worthiness of such individual. This bill is currently on the floor in the Senate
Assembly Judiciary Committee: 
  • A.5611 (Weinstein)/S.3216 (Comrie) states that current affirmative allegation provisions for high-cost loans and subprime home loans would be applicable to all mortgage foreclosures. The legislation is on the Senate floor.
Senate Housing, Construction & Community Development Committee:
  • A.6370 (Williams)/S.5357 (Comrie) would expand the definition of "tenant" for the purposes of required notice during a mortgage foreclosure action. This bill is on the floor in the Assembly. NYBA opposes this bill.
  • S5079A (Skoufis), the "Zombie Property Remediation Act of 2019" relates to foreclosure actions involving abandoned properties. There is no Assembly companion bill
Items On This Week's Legislative Committee Agendas:

Assembly Consumer Affairs & Protection Committee: 
  •  A.2611-B (Dinowitz)/S.2884-B (Sanders), to prohibit disclosure or use of consumer credit history in hiring, employment and licensing determinations. (Legislation is on the State Senate floor.)
  •  A.5294 (Crespo)/S.2302 (Kavanagh), would prohibit a consumer reporting agency or lender from using the credit scores of members of an individual's social network to determine the credit worthiness of such individual. This bill is currently on the floor in the Senate.




Lacewell Notes Cybersecurity Still A Top DFS Priority
& Emphasizes New Consumer Protection Division 

Linda Lacewell
Acting NYS Financial Services Superintendent Linda Lacewell recently called cybersecurity "the number one threat facing all industries and governments globally." She noted DFS's leading role in cybersecurity regulation and indicated cyber will continue to be a top priority at the Department, noting: "We've got to do the hard work." Lacewell suggested DFS-regulated companies should place cyber issues at the top of their risk agendas. Lacewell also stated regulated entities need to think hard about all of their compliance efforts, including on cyber, to ensure "robust execution and meaningful risk mitigation plans" to deliver "what we owe to all consumers." 

Katherine Lemire
Acting Superintendent Lacewell also recently announced Katherine Lemire as Executive Deputy Superintendent to lead the newly created DFS Consumer Protection and Enforcement Division. The Division will be responsible for "enforcing compliance with state regulations, fighting consumer fraud and protecting and educating individuals about their financial and digital security." 

The Division also will cultivate investigations into violations of the state's banking, insurance and financial services laws as well, with a special focus on cybersecurity and financial crimes. Lacewell said: "DFS's new Consumer Protection and Financial Enforcement Division will be a powerhouse, and Katie's knowledge and skillset will greatly strengthen the Department's mandate to guard against financial crises and to protect consumers and markets from fraud." 

Washington, D.C.WashingtonGR


Top Financial Regulators Testify On Hill This Week

Maxine Waters
Top federal financial regulators testified last week before the House Financial Services Committee (chaired by Rep. Maxine Waters, D-CA) and Senate Banking Committee (Chaired by Sen. Mike Crapo, R-ID), providing their regular updates.  FDIC Chairman Jelena McWilliams, Comptroller of the Currency Joseph Otting, Fed Vice Chairman for Supervision Randal Quarles and National Credit Union Administration Chairman Rodney Hood were on the hill. 

The hearing touched on various current banking issues, including the Community Banking Leverage Ratio, examiners' use of guidance, Community Reinvestment Act (CRA) and Bank Secrecy Act (BSA) modernization, megabank leveraged loans, the BB&T-SunTrust merger, among others.
  • Mike Crapo
    Senate Banking Committee Chairman Crapo urged the regulators to revisit the Community Bank Leverage Ratio, which implements exemptions from risk-based capital requirements. He has supported setting the CBLR at 8%. That would include roughly 600 highly capitalized community banks otherwise ineligible for relief. He has also supported ensuring the proposed Prompt Corrective Action framework does not deter community banks from using the CBLR. The agencies are proposing a 9% leverage ratio that banks with less than $10 billion in assets must meet in order to be exempt from risk-based capital rules, including Basel III. (ICBA has repeatedly called on the agencies to lower the CBLR to 8%). FDIC Chairwoman Jelena McWilliams said her agency is reviewing comments on the proposal, while Comptroller of the Currency Joseph Otting said the 9% ratio would include roughly 84% of insured banks under $10 billion in assets.
  • Federal Reserve Vice-Chairman for Supervision Randall Quarles told the Senate hearing audience "competition in the banking industry is as good as competition anywhere," and suggested a "sanguine" attitude towards the pending $66B merger between BB&T and SunTrust. The comments came in response to a question from the Ranking Democrat, Sherrod Brown (D-OH).



IBANYS, ICBA Support Rep. Maloney's 
"Corporate Transparency Act"

Rep. Carolyn Maloney
When IBANYS was in Washington for congressional visits April 30, we met in Rep. Carolyn Maloney's (D-Manhattan) office on a number of issues, including legislation regarding "beneficial owners." Rep. Maloney is a senior member of the House Financial Services Committee. ICBA this week urged Congress to require companies to disclose their "beneficial owners" when they are formed. In a statement for today's Senate Banking Committee hearing on collecting beneficial ownership information, ICBA is demonstrating support for Rep. Maloney's "Corporate Transparency Act" (H.R. 2513). As IBANYS shared with Rep. Maloney, and as  ICBA noted, collecting this information for all legal-entity customers is a difficult and onerous task for banks. On the other hand, requiring businesses to provide this information to the Financial Crimes Enforcement Network would provide no additional burden on these companies over what they currently provide to banks under the existing Customer Due Diligence rule. 

Furthermore,  ICBA also provided its July 2018 white paper on modernizing anti-money-laundering and anti-terrorist-financing laws and regulations. As Congress debates Bank Secrecy Act reform, the white paper advocates updating currency transaction report and suspicious activity report thresholds, providing more current information to financial institutions, and creating a tax credit to offset the cost of the Bank Secrecy Act.



OCC Speaks Out On DFS &  Fintech Charter Lawsuit

Joseph Otting
Comptroller of the Currency Joseph Otting said in an interview that the recent decision by U.S. District Court Judge Victor Marrero that allows the New York State Department of Financial Services (DFS) to continue its legal challenge to the OCC's special-purpose fintech charter is having an impact by inhibiting applications for the charter. The court ruled  the OCC failed to rebut DFS's claim that the charter poses a threat to its ability to establish its own laws and regulations. 

There is also another lawsuit pending against the OCC by the Conference of State Bank Supervisors. Otting no longer expects to have a fintech firm formally apply during the second quarter of 2019.  ICBA has expressed concern the charter would create an unlevel regulatory playing field, and believes the OCC should not issue any fintech charters absent specific congressional authorization.

. . .And, On CECL

Meanwhile, in its  latest Semiannual Risk Perspective, the OCC said the implementation of the Current Expected Credit Loss (CECL) standard warrants awareness among bankers and examiners and could develop into a key risk. OCC said CECL "may pose operational and strategic risk to some banks when measuring and assessing the collectability of financial assets,"  and cited credit quality, the increasing complex operating environment, BSA/AML compliance, and interest rate risk.



Latest On "Postal Banking"

ICBA told the House that it has serious concerns with congressional efforts to pressure the U.S. Postal Services to offer banking services, noting the USPS's serious fiscal problems and stating it should focus on restoring its own viability rather than entering a complex industry that would put taxpayers at risk.  "In trying to address one problem, let's not create another," wrote ICBA President and CEO Rebeca Romero Rainey. "Instead, Congress should pursue policies to strengthen community banks and encourage de novo banks." 

IBANYS and  ICBA have consistently opposed postal banking and urged  a Treasury Department task force on the postal system to recommend prohibiting an expansion of banking services at USPS. The task force did so last December, noting the USPS has narrow expertise and capital limitations and should not take on added balance sheet risks.



Update On CFPB's Ability To Repay Provisions


ICBA has urged the Consumer Financial Protection Bureau (CFPB) to ensure the small-dollar marketplace is fair, transparent and competitive. Commenting on the Bureau's proposal to rescind "ability-to-repay" provisions required by its 2017 small-dollar rule, ICBA supported promoting community banks as model small-dollar lenders, and urged the CFPB to allow flexibility for banks to develop and manage their own reasonable underwriting guidelines.



FHFA's Calabria: Time To Release Fannie & Freddie 

Mark Calabria

The Trump administration is pressing to release Fannie Mae and Freddie Mac from their federal control, which took effect in October 2008 in the wake of heavy losses that both suffered on home loans during the subprime mortgages crisis. "It was insufficient capital that triggered the conservatorship, and it's going to be sufficient capital that triggers an exit," said Mark Calabria, Director of the Federal Housing Finance Agency (FHFA).



New Director Of Congressional Budget Office

Dr. Phillip Swagel

U.S. Senate Budget Committee Chairman Mike Enzi (R-WY) and House Budget Committee Chairman John Yarmuth (D-KY) announced University of Maryland economics professor Dr. Phillip Swagel, a former Treasury official under President George W. Bush, will be the next director of the non-partisan Congressional Budget Office (CBO). Swagel was Assistant Secretary of Treasury for Economic Policy from 2006-09, served on the White House Council of Economic Advisers, and was an economist for the Federal Reserve Board. The CBO advises Congress on projected costs of legislation.



State Sen. Jacobs To Run For Collins' Congressional Seat In 2020

Senator Chris Jacobs

Republican state Senator Chris Jacobs (R-Erie County) announced he will is run for New York's 27th Congressional District in Western New York in 2020, instead of seeking re-election to the Senate.  The congressional seat is currently held by Republican Chris Collins, who is facing federal insider trading charges. Jacobs said Collins does not 
the capacity to be effective because of the situation." Collins' trial is scheduled for February 2020, and he has not said whether he'll run again.  Jacobs indicated he would primary Collins if necessary. 



Comments On Proposed Call Report Revisions Due June 18

The FDIC is requesting feedback on proposed revisions to the Consolidated Reports of Condition and Income (call report), which introduces reporting requirements on the proposed Community Bank Leverage Ratio.  The proposed call report revisions also address proposed amendments to the FDIC's regulations that would apply the CBLR framework to the deposit insurance assessment system. Comments on the proposal are due June 18, 2019. New York  bankers: use ICBA's "Be Heard" grassroots action center  to tell regulators the proposed 9% community bank leverage ratio is too high and to urge an 8% CBLR.

Industry Trends & Updates

How Community Banks Can Deal With "Fraudulent Instruction"TravelersArticle


IBANYS' preferred partner Travelers has prepared an article on a social engineering threat called "fraudulent instruction" that is being faced by community banks and financial institutions. In a bank's case, fraudulent instruction occurs when an employee is tricked into transferring money from a customer's account to somewhere else because a fraudster steals the customer's identity and convinces the bank through emails or phone calls to move the funds. It also includes steps that can be taken to protect against attacks. Read the full article.

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PromontoryArticle

Relief for Community Banks in the Competition for Deposits

The recent bank reform bill made a lot of news, but what may surprise you is the specific provision of the Economic Growth, Regulatory Relief, and Consumer Protection Act that community bankers believe will have the biggest impact on their daily business.

Before the bill became law, a lot of attention was placed on the provision raising the systemically important financial institutions, or SIFI, threshold from $50 billion to $250 billion in assets, above which banks must contend with a heavier compliance burden. 

Yet, the provision involving SIFIs directly impacts only a small number of commercial banks based in the United States-the dozen-plus with between $50 billion and $250 billion in assets. Read full article.

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BondAcademy
The Bond Academy

Learn Bond Basics with your Peers!

When: October 21, 2019

Where: Embassy Suites
1022 S. Shady Grove Road
Memphis, TN  38120

The Bond Academy is designed to provide community bankers with the basic knowledge needed to help plan and create effective investment portfolios.
A high performance investment portfolio can provide a noticeable increase to your bank's bottom line. The learning objectives of Bond Academy are aimed at providing you with the tools to understand how debt instruments work and their overall role in complementing the entire balance sheet.

This all new curriculum has been specifically designed to equip a new portfolio manager with basic portfolio management issues. Specifically, fundamentals of bond pricing, valuation, and selection will be covered extensively.  You'll learn the basics of the bank portfolio investment process. There is also an opportunity to earn up to 12 CPE credits!

Who Should Attend?

CPAs and those new to their roles as investment officers, cashiers, controllers, and internal control professionals will benefit the most from Bond Academy. New directors serving on the investment or asset-liability committee will also find this course beneficial. No advance preparation is necessary.

You Will Learn:
  • Bond basics, including bond pricing, duration, and price volatility
  • Bond types, including agencies, municipals, mortgage securities, and floating rate instruments
  • The composition of a high performing portfolio
  • How to understand the rate market: yield curves, spreads, monetary policy
  • How economic data affects the bond market
  • The impact of interest rate risk on portfolio management
  • Portfolio strategies of laddering, barbells, riding the yield curve
  • Day-to-day portfolio management techniques
  • Evaluating investment portfolio performance
Fees:

  • ICBA Members - $595 / session
  • Nonmembers - $695 / session
  • Members & Non-Members: Save $150/session for each additional registration from your bank.




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Leveraging Customer Data for Growth


Main Street has prepared an article on " Leveraging Customer Data for Growth."  
A recent survey revealed that 57% of banks say internal silos are their biggest obstacles to big data success. Sharing customer data across departments and even across marketing channels can be challenging, but the benefits are worth it.   Your bank may not be leveraging retail customer data to its' full potential, but the good news is that it is a big opportunity ...and it can be easy to implement. 

Data has the power to drive customer acquisition, improve customer relationships, unlock new opportunities and increase profitability. Analytics provides the knowledge to empower your institution to drive retail customer growth. Read the full article.

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New York Unemployment Rate At 3.9%, 
Private Job Growth  "At All Time High"

New York State's unemployment rate remained unchanged in April at 3.9%, according to the State Department of Labor.   The private-sector job count grew by 24,600, to more than 8.3 million - reportedly a new all-time high.  Gov. Cuomo said the administration's goal is "to provide excellent employment opportunities across the state by bolstering our regionally focused economic development strategies and diversifying our portfolio through new and innovative industries.   While we continue to set record numbers, we still have more work to do. New York must continue to build on our economic success by creating and retaining jobs to pave the way for future success."  However, T he Empire Center said  much of the job growth is uneven across the state, and the April numbers show "a wide regional variation in private job creation rates around the state - and New York as a whole continues to trail employment growth nationally."
  • Recently released data from the Federal Reserve Bank of New York's Center for Microeconomic Data revealed that the first quarter of this year was the mortgage business' worst quarter in more than four years, and on the refinance side of things it may have been the worst quarter since the financial crisis. The report examined mortgage originations as appearances of new mortgage balances on consumer credit reports and includes refinances. It showed the first quarter had the lowest dollar amount of mortgage originations in any quarter since the third quarter of 2014. 
  • The New York Federal Reserve Bank reported aggregate household debt increased 0.9% during the first quarter, the 19th consecutive quarterly increase. Mortgage balances rose $120 billion during the first quarter, to $9.2 trillion. Balances on home equity lines of credit declined by $6 billion, to $406 billion, continuing a trend going back to 2009.   Non-housing balances increased by $10 billion in the first quarter, with auto loan and student loan balances increasing and credit card balances declining by $22 billion. Aggregate delinquency rates remained steady, mortgage delinquencies declined slightly, while credit card delinquencies continued a climb dating to 2017.
  • The U.S. Census Bureau reported that housing starts rose 5.7% in April but remained down 2.5 % from a year ago.  Building permits rose 0.6% last month and were still down 5.0%  from April 2018. Single-family starts were up 6.2% last month, while single-family authorizations declined 4.2%. Meanwhile, the Bureau also said retail sales declined 0.2% in April but remained up 3.1% from a year ago. (The Bureau's previously reported 1.6% increase in March was also revised up to 1.7%.)
  • The National Association of Home Builders (NAHB) reports that builder confidence in the market for new, single-family homes has improved during May. Its monthly index rose three points to 66, its highest level since October. NAHB did say affordability challenges persist, and are impeding stronger sales. Meanwhile, industrial production fell 0.5 percent in April on declines in production automobiles and parts, the Federal Reserve said. In March, business inventories were unchanged from the previous month but up 5.0 percent from the same time last year, according to Census.
  • Existing-home sales decreased 0.4% in April following a decline in March, according to the National Association of Realtors. Decreases of 4.5% in the Northeast and 0.4% in the South offset a 1.8% gain in the West and no change in the Midwest. Overall, sales are down 4.4% from a year ago.
  • According to the Mortgage Bankers Association's seasonally adjusted index, total mortgage application volume increased 2.4% last week from the previous week, and was up 15% from a year earlier. Refinances drove the numbers, jumping 8% for the week to the highest pace in a month and 31% annually. Mortgage rates fell for the fourth straight week, with the 30-year fixed rate mortgage hitting its lowest level since January 2018.
  • Federal Reserve Chairman Powell warned that financial regulators need to be wary of increasing corporate debt, although he said some comparisons to the subprime mortgage crisis are "not fully convincing." Between a return to the subprime-mortgage crisis and "nothing to worry about here," Powell said "the truth is likely somewhere in the middle." 
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2019 Crowe/ICBA Bank Compensation & Benefits SurveyCroweICBASurvey

The survey closes May 31, so don't wait! 
For more than 30 years, Crowe Horwath LLP has conducted a comprehensive annual  survey of compensation-related practices in the banking industry. This year, the survey report will provide salary and bonus benchmarks for 273 positions as well as information on benefits, incentives, director compensation, succession planning, and human resource practices. It will also allow you to benchmark your bank's compensation practices against those of other similar banks.
 
Participating in the 2019 survey is the first step to accessing valuable bank compensation benchmarks and trends across 273 jobs, including:

  • Salary trends and incentive payouts
  • Employee turnover and staffing levels
  • Benefit trends
  • Generations in banking
  • Board of directors' compensation
The survey results can help you address questions such as:
  • Are our employees being paid competitively?
  • What are banks planning for salary increases?
  • Is our executive compensation package competitive?
  • How do our director fees compare to others?
  • What can we do to control the costs of benefits?
  • How do our human resource programs compare with those of other banks? 
By completing the entire survey, you will receive access to exclusive thought leadership and a substantial discount off the retail price of the survey report. 


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New York Community Banks: Take The Survey!


Community bankers are encouraged to participate in a survey from state regulatory agencies and the Conference of State Bank Supervisors (CSBS) on a range of topics for research purposes. CSBS has begun the annual process of surveying community banks on their economic condition, regulatory impacts and business plan. The goal is to get a more accurate understanding of how bankers are feeling about the future and to help provide an important barometer of the state of the industry. Survey results will be presented during the Community Banking in the 21st Century Research and Policy Conference, slated for Oct. 1-2 in St. Louis. Responses are due June 30. 
 

Banking News

Further Your Education at Barret Graduate School of Banking BarretGradSchool


Barret and IBANYS are aligned with a common interest: to represent the interests of the industry through effective advocacy and high quality educational offerings.

Located in Memphis, TN, Barret Graduate School of Banking offers a comprehensive graduate learning program for professionals in the financial services field. IBANYS has established partnerships with key industry educators including the Barret Graduate School of Banking. The school provides community bankers with an opportunity for a graduate degree in banking. 

We are currently endorsed by ICBA, ICBA Securities, Arkansas Community Bankers, CBAofGA, Indiana Bankers Association, CBAofKS, MIBA, CBAofOH, CBAofWV - with a couple more on the way. 

To learn more about Barret Graduate School of Banking, please visit   www.barret.ws.

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Keep The Door Open For Your Small Business Customers

Excelsior Growth Fund (EGF) is NYBDC's nonprofit Community Development Financial Institution and IBANYS' exclusive online lending partner. Join the growing number of banks that work with EGF to offer their customers an affordable and responsible option when they do not qualify for traditional financing. EGF offers loans up to $500,000 with a convenient, digital process. Loans under $100,000 are disbursed within 5 business days.

 EGF's experienced team can work hand-in-hand with yours to develop a customized process to make referring seamless. To learn more about offering your customers a second look through EGF contact Bryan Doxford, SVP, at bryan.doxford@excelsiorgrowthfund.org at at (212) 430-4512.

Convention Spotlight of the WeekConventionSpotlightofWeek

Convention Sponsors

Federal Home Loan Bank of New York (FHLBNY)

The Federal Home Loan Bank of New York (FHLBNY) helps community lenders in New Jersey, New York, Puerto Rico and the U.S. Virgin Islands advance housing and community growth. The FHLBNY is part of the congressionally chartered, nationwide Federal Home Loan Bank System, which was created in 1932 to provide a flexible credit liquidity source for member community lenders engaged in home mortgage and neighborhood lending. The FHLBNY increases the availability of mortgages and home finance to families of all income levels by offering high-value correspondent and cash management services to assist our members in more effectively serving their neighborhoods and meeting their Community Reinvestment Act responsibilities. 

The mission of the Federal Home Loan Bank of New York is to advance housing opportunity and local community development by supporting members in serving their markets.  The FHLBNY meets our mission by providing our members with access to economical wholesale credit and assistance through our credit products, mortgage finance program, housing and community lending programs, and correspondent services to increase the availability of home finance to families of all incomes. Learn more.



Wolf & Company, P.C.

Wolf & Company is one of the top regional certified public accounting firms in the Northeast, New York and New Jersey. Building on our tradition of unparalleled guidance, we provide our clients with audit and assurance, tax, business consulting, risk management services, and  WolfPAC Integrated Risk Management®.




NYBDC


New York Business Development Corporation (NYBDC) promotes and advances the business prosperity and economic welfare of New York State by providing small business loans. Throughout its 60-year history, NYBDC has provided thousands of small businesses, including start-ups, mature businesses, and minority- and women-owned businesses, with access to loans when they do not meet the requirements for traditional financing. Learn more.



The Bonadio Group

Founded in 1978 and led by active, engaged partners, The Bonadio Group brings a passion and approach to our work that distinguishes us in our field. Each client assignment begins with the close attention of a senior partner, who continues to watch over and advise the relationship as it proceeds, to ensure we optimize the outcome of our services.

We are a nationally ranked, top 40 CPA firm that brings an integrated world of resources to every client, large or small. We have developed relationships with a diverse range of organizations - from private sector to public, tax-exempt to individual. And we are continually expanding our range of offerings and geographic footprint to ensure your growing needs are consistently met. Learn more.



COCC

COCC was created by a cooperative of financial institutions to deliver real banking technology. At COCC, we feel strongly that our carefully crafted mission statement, vision and corporate values are reflected in everything we do.

Our mission is to be a trusted partner, delivering secure, quality solutions that drive the success of financial institutions, while providing a challenging and rewarding workplace for our employees.Our vision is the hope that by embracing our business priorities and living our values, we will become the preferred technology provider in our industry.And our values are embraced company-wide and held up as a standard for quality in our industry.



Steuben Trust Company

On August 28, 1902, the Bank of Steuben was opened in the City of Hornellsville under the direction of then President, William Richardson, as a New York State chartered bank. Originally located in the former Babcock building on Main Street in Hornell, the Bank was built to accommodate the booming railroad village founded on the lumber, fur and farming industry of the region. This attention to regional industry and the communities served has stayed a primary focus to this day.

In 1914 the bank built its main office at 82 Main St. in Hornell, which the bank called home for the next 85 years. In 1920 the Bank of Steuben officially changed its name to, Steuben Trust Company as it began offering trust services.  Today, Steuben Trust Company, with assets over $550M, operates fifteen full service branches and one representative office across six counties in Western, NY and the Southern Tier. On September 17, 2018 Steuben Trust opened its doors at its first full service branch in Erie County in the Town of Clarence, NY. In addition to the Bank, Steuben Trust Company also operates Steuben Asset Management, for wealth management and trust services and Steuben Financial Services, a subsidiary offering insurance services. Learn more.




Accume Partners

Accume Partners is a trusted advisor that assists clients by delivering integrated Risk, Regulatory, and Cybersecurity solutions to help manage uncertainty and drive business value.  We focus on both emerging and established Financial Services, Commercial, and Education sectors.  We have over 25 years of experience, a local & national presence, and currently advise over 500 clients.

Accume Partners has a long history of providing internal audit, regulatory compliance and risk management services to banks and financial institutions. As the level of regulatory and business complexity has surged, so has the need for specialized knowledge and focus.
Learn more.



S.R. Snodgrass, P.C .

S.R. Snodgrass, P.C. was built on a strong foundation of stability, integrity, and high-quality customer service. 

Since 1946, their independent accounting and consulting firm has assisted clients in the ever-changing world by taking a consultative approach. S.R. Snodgrass, P.C. professionals provide vast expertise in the areas of auditing and assurance, internal audit and regulatory compliance outsourcing, information technology, consulting, enterprise risk management, and tax management. Learn more.



CEIS Review, Inc.

The CEIS Review mission is to be the preeminent provider of independent outsourced loan review, loan portfolio stress testing, ALLL methodology validation or refinement, as well as being a provider of related commercial credit management techniques to financial institutions worldwide. Their commitment is to commercial banks, savings banks, credit unions, foreign branches and agencies, multinational organizations and other firms requiring a third party assessment of loan portfolio quality and process. Learn more.



CloudBnq, Inc.


CloudBnq.com turns Community lenders into Digital lenders. CloudBnq.com is a loan origination solution that enables all lending product types with no upfront capital or IT investment, does not change the lending policies in place today & reduces the cost/time across all loan origination. Learn more.



Metropolitan Commercial Bank

H eadquartered in New York City, Metropolitan Commercial Bank is a full-service commercial bank with banking centers in Manhattan, Boro Park Brooklyn and Great Neck, Long Island.  The bank is known for its white glove personal service. 

Combining the relationship-driven banking experience you would expect of a community bank with an extensive suite of products and services. They not only have the capabilities and capacity to meet your needs, but also have the ability to craft highly innovative solutions to your precise challenges based on an intimate familiarity with your business. Metropolitan Commercial Bank professionals are prudent lenders who look beyond the simple numbers on a spreadsheet for the context to understand your needs and help you take advantage of the opportunities that you make happen. Learn more. 



Compliance Anchor


Owned and managed by community bankers for community bankers, ACBB/Compliance Anchor has been serving financial institutions since 1983. They provide correspondent services to over 300 shareholder banks in addition to many non-shareholder banks. From their full product and service lineup to banking expertise with a personal touch, they help their customers meet the needs of their communities. ACBB can satisfy the correspondent needs of community banks of all sizes, including regional financial institutions. Learn more.



Info Agora

Founded in 2004 by Grigoris Karakoulas, InfoAgora delivers innovative prescriptive analytics, RegTech (IFRS9/CECL/IRRBB/Basel III)  solutions and risk management consulting that have enabled their clients to proactively manage risk/reward in their portfolios and increase profitability.

As a thought leader and provider of leading-edge analytics solutions, the company empowers Financial Services companies with new capabilities to understand and predict customer behavior, measure and mitigate risk under different macro and micro scenarios, at both the customer and portfolio levels, in order to gain competitive advantage.  Each of their solutions leverages proprietary machine learning technology. Their breakthrough data preprocessing and modeling techniques deliver dynamic and robust models for predicting customer behavior, such as default, loss given default, prepayment, usage, attrition, and fraud. Learn more.


Sandler O'Neill

Sandler O'Neill + Partners, L.P. is a full-service investment banking firm and broker-dealer focused on the financial services sector. Their clients include a wide variety of financial firms nationwide, and increasingly, around the globe. Sandler O'Neill  provides the full suite of investment banking services, including merger and acquisition advisory, capital markets, fixed income and equity trading and sales, equity research, balance sheet management, mortgage finance, and consulting services to financial institutions and their investors.

Sandler O'Neill is a partnership and different by design. Since the firm's founding in 1988, its partners have sought to provide banks, thrifts and other financial services companies with an alternative to large Wall Street banking firms. Their focus has always been to enhance the franchise value of their clients. They provide clients a wealth of experience and knowledge more critical to them today than ever. Learn more.
IBANYS Spotlight Is On...








The Federal Home Loan Bank of New York ( FHLBNY)  is part of a government-sponsored enterprise, owned by its stockholders, that provides wholesale liquidity to member community lenders in New York, New Jersey, Puerto Rico and the U.S. Virgin Islands to help them more effectively meet the needs of their customers and CRA responsibilities. 

The FHLBNY is committed to operating a financially safe and sound organization and fostering diversity at all levels by ensuring the inclusion of minorities, women, and individuals with disabilities in employment, in its business activities, and in service contracts.

For more information, contact:

Adam Goldstein, SVP, Head of Sales & Business Development

IBANYS Endorsed Services
IBANYS identifies offers products and services that provide value to your banks, companies, employees communities. These brief summaries provide links for information. Please contact IBANYS President John Witkowski with questions.

Health & Wellness

My Wellness Resource & TELADOC

The health and wellness landscape continues to evolve. "My Wellness Resource" can be a nice addition to your existing benefit package. 

Teladoc can save your banks time and money, and provide real value to your employees as this testimonial from a New York community bank CEO proves:
HERE'S WHAT YOUR FELLOW NEW YORK
COMMUNITY BANKER SAYS. . .
"I wanted to let you know that some of our employees and I have been using "Teladoc" and it is one of the best things we have done for the bank. We all love it: We are saving time, avoiding waiting in an urgent care center or a doctor's waiting room for non-emergency related illnesses . . .and it is easy to use and convenient. Once you use it, you are hooked! This was a great find! Would recommend it to all banks."

Mario Martinez 
Chairman & CEO
Catskill Hudson Bank

Contact Alan Justin: (716) 907-5500. 




"Cure the Blue" Helps Banking Industry Battle Prostate Cancer!

The "Cure the Blue" program sponsored by the Buffalo Bills Alumni Foundation allows New Yorkers to participate in one of the most comprehensive efforts to help promote prostate cancer awareness and research in the United States.  Lake Shore Savings Bank has provided prostate cancer literature and Cure the Blue information at all eleven of its branches and their headquarters in Dunkirk. The bank also offered Cure the Blue ceramic lapel ribbon pins for a $5.00 donations to Cure the Blue to all their customers. "We fully understand the severity of this disease and the devastating effect it can have on families" said Lake Shore Savings Bank President and CEO Dan Reininga. "Our support of the Buffalo Bills Alumni Foundation's "Cure the Blue" initiative is something that we are taking very seriously and are proud to support." Buffalo Bills Wall of Famer and Alumni Foundation President Booker Edgerson, a two time prostate cancer survivor, said the bank has been a tremendous longtime supporter, noting: "They have really stepped up to the plate with their unwavering support of our Cure the Blue initiative." 

IBANYS urges all of our member banks, associate members and allies to join the effort. Cure the Blue" raises funds and awareness regarding prostate cancer in New York State. Visit  curetheblue.com  to get involved! Of all new cancer cases in the nation, prostate cancer represents 9.6%. In 2017, there were an estimated 161,000 new cases, and more than 26,000 fatalities due to the disease. Support IBANYS' "Cure the Blue" campaign to help New Yorkers participate to promote prostate cancer awareness and research.



Secure, Enhanced Internet Presence

The .bank program by fTLD operates trusted, verified, more secure, easily-identifiable internet locations for financial companies and  customers. www.icba.org 

Did You Know?


. . .that in 1974, the year IBANYS was founded, the U.S. House and Senate were both controlled by Democratic majorities. The Senate Majority Leader was Mike Mansfield of Montana, and the Speaker of the House was Carl Albertr of Oklahoma. In 1974, New York State had 39 congressional districts and  and two U.S. Senators (Republican Jacob Javits and Conservative James Buckley), for a total of 41 electoral college votes.

Today, New York has 27 congressional districts and two U.S. Senators (Democrats Chuck Schumer and Kirsten Gillibrand) for a total of 29 electoral college votes.

 
New York community banks play a key role in our state and local economies. Help spread the good news among our customers, business, elected leaders and the media!



John J. Witkowski
President & Chief Executive Officer

Stephen W. Rice
Director of Government Relations & Communications

Linda Gregware
Director of Administration & Membership Services

William Y. Crowell III
Legislative Counsel

Natalie Rowan
Marketing & Social Media Assistant