October 16, 2019

In This Issue: 
Welcome Fall
Message From The President

By John Witkowski, President & CEO

IBANYS Looks Ahead To New Fiscal Year

Friday, October 18, IBANYS will hold its final 2019 Board of Directors meeting. IBANYS board members play an essential role in providing the leadership and guidance your association needs as we continue to represent the interests of New York's community banks -- in our Albany and Washington advocacy efforts. . . through educational programs, meetings and conferences. . .by facilitating your access to products and services to contribute to your profitability. . .and in offering new and innovative solutions.  

Our Chairman Tom Amell (Pioneer Bank) has done an extraordinary job this past year and we salute him for his dedication, commitment and willingness to share his time and expertise on our behalf. Current Vice Chairman, Mike Wimer (Cataraugus County Bank) will assume the chairman's gavel and the IBANYS reins on November 1, ensuring that IBANYS will remain in good hands as we continue to build on the solid financial, political and member-driven foundation that we have all built together. 

We are fortunate to have the commitment and support of these leaders of our industry!

*   *   *   *   *
  • IBANYS has been hard at work preparing for the beginning of our new Fiscal Year on November 1, and the start of the new state and federal legislative sessions which begin in January. Our philosophy remains unchanged: to advocate, educate and provide value to our member banks.
  • As is the case each year, we will work to achieve growth in our membership -- in both community bank members, and in our associate membership & preferred partners programs that provide services to our banks.
  • We are excited that we will be expanding our footprint in New York City are by offering two new one-day programs - Compliance Program in January, and a Directors Programin February. We have also offerour classes to neighboring states. 
  • Legislatively, we will support proactive bills that put community banks on offense, and we will continue defending ourselves against the credit unions. It is a challenging political environment but one that we are ready to take head on with our legislative and regulatory leaders. Maintaining and enhancing solid relationships with our local members of the State Legislature and Congress is vital to our success. 
IBANYS is YOUR association, and survives and succeeds by remaining member-driven. 
In all our plans and objectives, we need the active participation, support and engagement of our membership. It is paramount. We need your participation in our committees and peer groups (e.g., Government Relations, CFO, Compliance, Innovation); our seminars, meetings and conferences, and we need your banks to consider the benefits that our associate members, preferred partners and endorsed products and services can bring to your institutions.

As always, thanks for all you do for community banking in New York State.

Follow IBANYS On Social Media!

 Connect With Us Today!

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  • IBANYS 2020 Annual Convention will be held June 15-17, 2020 - Turning Stone Resort and Casino - Save the Date - Mark your calendar.
  • Watch for our announcements regarding our 2020 Meetings, Conferences & Seminars Calendar. . .Coming Soon!
  • 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


IBANYS Education/WebinarsWebinars

The Independent Bankers Association of New York State (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. Not only that, but every 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.

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

Purchase Webinars Individually or Purchase the Series to Save 10%!

View or Purchase the Webinar

Stay-up-to-date with our webinar features by following us on Facebook, Twitter, Instagram, and LinkedIn! You can also follow the hashtag #WebinarWednesday on Instagram/Twitter!

Government Relations


The New York State Legislature will return to Albany in January for the 2020 session. 

  • The New York State Department of Financial Services (DFS) formed a Student Debt Advisory Board to consider issues such as consumer protection, student financial products and services, and issues facing communities impacted by student debt.
  • The new Siena Poll out this week found that New Yorkers who responded favored impeaching and removing the President by 55% - 38%:  79% Democrats backed the process, 81% of Republicans opposed it and  Independents were essentially split. As for the Democratic presidential nominating process, former Vice President Biden and Massachusetts Senator Warren were tied at 21%, with Vermont Senator Sanders at 16%.  Governor Cuomo's favorable rating was at 49% favorable to 47% unfavorable, virtually unchanged from the previous month.

IBANYS' Plan of Action for 2020

IBANYS is preparing for the 2020 state legislative session that begins in January, developing positions and policies and encouraging member banks to meet with their local legislators to continue informing them about community banks, our priorities and the vital role we play in New York State. Please email us your ideas, thoughts and comments on issues you want to see on the 2020 IBANYS legislative agenda.

Washington, D.C.WashingtonGR

Both the House and Senate are back in session this week following the Columbus Day Holiday.

Maloney Beneficial Ownership Bill Advancing 

Rep. Maloney
Legislation supported by IBANYS and ICBA that would provide relief from " beneficial ownership" disclosure mandates is advancing toward a House vote as soon as next week.  Rep. Carolyn Maloney's (D-N.Y.) "Corporate Transparency Act" (H.R. 2513) would require certain small businesses to disclose their "beneficial owners" to the Financial Crimes Enforcement Network when they are formed or there is a change in ownership structure.  The bill would relieve community banks of the burden of collecting this information from their customers. The Senate recently introduced similar, bipartisan legislation (S. 2563).

CFPB Extends HMDA Lines Of Credit Thresholds Through 2021
The Consumer Financial Protection Bureau   issued a final rule  extending for two years Home Mortgage Disclosure Act temporary reporting thresholds for open-end lines of credit.
As proposed, the threshold for open-end lines of credit will remain at 500 until Jan. 1, 2022, when it is scheduled to revert to 200. ICBA has been calling on the bureau to make the temporary threshold permanent. In a comment letter, ICBA told the CFPB that the financial costs associated with HMDA  compliance are one of the most challenging burdens for community banks, and that the Bureau should eliminate the collection and reporting of discretionary HMDA data not required by law, which are part of the 48 unique data fields added via the agency's 2015 rule. 

"Explainers" on Cannabis-Banking Bill
ICBA has released a  one-page summary  providing answers to  frequently asked questions
on House-passed legislation to establish a cannabis-banking safe harbor in states where cannabis is legal. Last month's bipartisan House vote sent the SAFE Banking Act (H.R. 1595) to the Senate. This ICBA summary details what's in the legislation, and how it would benefit community banks and local communities.  To read these documents, click here  and  here . . .O r, visit www.icba.org and click on "ICBA Issues Explainers On Cannabis Banking Bill"

OCC Names New Senior Deputy Comptroller
For Community Banks
The  OCC announced that Blake Paulson will become the next senior deputy comptroller for midsize and community bank supervision effective in December. He will succeed  Toney Bland, who is retiring in January.  Paulson will oversee the team of more than 1,500 employees responsible for supervising approximately 1,100 community and midsize national banks and federal savings associations.  

New CFPB Task Force To Review Consumer Finance Laws
The Consumer Financial Protection Bureau is creating the  Taskforce on Federal Consumer Financial Law examine ways to harmonize and modernize federal consumer financial laws. The task force will examine the existing legal and regulatory environment and report its recommendations to CFPB Director Kathleen Kraninger. The bureau is accepting applications for membership on the seven-member task force. 

Congress To Hold Two Hearings On CFPB's Semi-Annual Review
The House Financial Services Committee held a hearing at 10 a.m. this morning  for the semi-annual review of the Consumer Financial Protection Bureau, with testimony by CFPB Director Kathy Kraninger. The Senate Banking, Housing and Urban Affairs Committee will hold its similar hearing at 10 a.m. tomorrow.  Meanwhile, Committee Chair Maxine Waters (D-CA) has also announced a 10-year extension of the federal terrorism reinsurance bill that contains no significant changes to the existing structure. Rep. Carolyn Maloney (D-Manhattan) is expected to co-sponsor the legislation.

Rep. Nita Lowey Won't Seek Reelection In 2020
Longtime U.S. Rep. Nita Lowey (D-Westchester/Rockland Counties), first elected to the House in 1988, 
will not seek reelection  in 2020.  Lowey was the first woman to chair the powerful House Appropriations Committee. A competitive primary is expected for the Democratic nomination to succeed her. Democratic Assemblyman David Buchwald and former Obama Justice Department official Mondaire Joneshas have announced, with speculation that Chelsea Clinton may run. 

New York Community Bankers: Take Action! 

IBANYS joins ICBA in asking IBANYS members to urge their local Members of Congress to advance legislation that will help community continue to serve military bases and rural communities. ICBA's "Be Heard" grassroots action center ( www.icba.org) can provide important information to help you: 
  • Urge lawmakers to include language in a defense bill to extend the same "rent-free" benefits to on-base banks that are currently enjoyed by credit unions
  • Support legislation that would exempt from taxable income interest on loans secured by agricultural real estate, and
A Conference Committee is currently working to reconcile a defense appropriations bill to support the provision to require the Department of Defense to treat banks and credit unions operating on military bases equally.  New Yorkers on the conference committee  include Senator Gillibrand and Reps. Delgado, Katko, Engel, Meeks, Nadler, Rose, Stefanik, Tonko, and Velazquez. 

ICBA is also asking community bankers to use the " Be Heard" grassroots action center  to advocate increasing the minimum threshold for collecting and reporting Home Mortgage Disclosure Act data. U rge the Consumer Financial Protection Bureau to raise the threshold even higher than proposed. ICBA advocates raising the threshold for closed-end mortgages from 25 to at least 100 and making permanent the 500 open-end lines of credit threshold.

Industry Trends & Updates


As part of its "Trust Through Transparency" campaign, the Federal Deposit Insurance Corporation ( FDIC) is holding listening sessions throughout the nation. The New York Region's event will be Wednesday, November 13 (8:30 am to 12:30 pm) at the FDIC Regional Office in the Empire State Building, 350 Fifth Avenue, New York, New York 10118.
Visit https://fdic.gov/news/news/financial/2019/fil19052.pdf to read about the session and for a link to register for the New York session.  Or, contact the FDIC Conference Planning Manager : (703) 516-5664,  vejames@fdic.gov.

Tomorrow's Complimentary Webinar On Faster Payments:
Is It Time for Real-Time?
ICBA will host a   complimentary webinar on Thursday, October 17 at 3:00 p.m. on the Federal Reserve's recent decision to get involved in real-time payments. " FedNow" will operate alongside the private sector Real Time Payments (RTP) service by The Clearing House.  This session will provide an overview of both services and pose strategic question for your bank to decide which service to offer and when to offer them. The webinar will provide 1 CPE Credit.  Presenter  Cary Whaley of ICBA will discuss:
  • How RTP works 
  • FedNow
  • How RTP can improve the customer experience 
  • What ICBA has done to continue the momentum on this issue 
  • Expectations moving forward
  • What bankers should consider and plan for
For more information, or to register, call 800-422-7285


SBA Guaranteed Over $28 Billion In FY 2019

The  Small Business Administration  said it guaranteed more than $28 billion during fiscal 2019. The SBA's flagship 7(a) loan program made approximately 52,000 7(a) loans totaling $23.17 billion. The 504 loan program made more than 6,000 loans totaling more than $4.9 billion. SBA Acting Administrator Chris Pilkerton noted: "A strong economy is powering America's 30 million small businesses, and the SBA's FY19 numbers bear that out. When the economy is doing well, 7(a) lenders are more willing to provide capital without the need for a federal loan guarantee. Our 504 and Microloan programs continued to grow from last year, as all of these loans are designed to create jobs and grow all small businesses in communities across the country."

FDIC Call Reports Due October 30

FDIC call reports for the Sept. 30 report date are due by Wednesday, Oct. 30. Community banks with less than $5 billion in assets may qualify to file the FFIEC 051 Call Report during the first and third quarters. That rule, which implements a provision of the S. 2155 regulatory relief law, took effect July 22. 


The Economy: By The Numbers

  • The latest data from the University of Michigan's preliminary index showed consumer sentiment advanced to a three-month high of 96 (up from from September's 93.2) --  the second-straight advance, and the first back-to-back gains since March. Consumers expressed expectations for rising incomes and lower inflation. Republicans are growing more confident, while Democrats' sentiment was the weakest since October 2008.
  • The U.S. Labor Department reported that the flat consumer price index last month was the weakest reading since January and came as increases in the cost of food and rents were offset by decreases in the prices of energy and used cars and trucks.
    The CPI edged up 0.1% in August. In the 12 months through September, the CPI increased 1.7% after advancing by the same margin in August.
  • A new survey by Zillo found that most home sellers are stressed about two things beyond their control: How much it may sell for, and how long it may take to sell. Both  affect the purchase and financing of their next home.  A Zillo spokesperson noted:  "Those outcomes could ultimately be the difference between retiring now or six months later or having to   pay a new mortgage   and rent in a temporary home.
  • The Federal Reserve Bank of New York added $87.7 billion to the financial system Tuesday, using the market for repurchase agreements, or repo to relieve funding pressure in money markets.
Banking NewsBankingNews

Please Join Saratoga National Bank's David DeMarco 
In This Important Effort
As President & CEO of Saratoga National Bank & Trust, David  DeMarco  embraces both his employees and the community he serves. David is excited to be part of the "Real Men Wear Pink" campaign again this year. M any of us have been touched by breast cancer through family, friends and colleagues. During the month of October, David will once again wear pink every day to raise awareness and funds to combat this dreaded disease. He is joined in making this stand against breast cancer by Capital District business leaders in the "Real Men Wear Pink" campaign. David notes: "The more people that support this cause, the bigger impact we can have in saving lives."  This year, MLB Construction Services, LLC has sponsored his campaign, and is helping in the fight. David is  asking you or your company to consider making a donation to support his efforts. If you wish to contribute, you can mail a check payable to the "American Cancer Society" to this address:

David S. DeMarco, President & CEO
Saratoga National Bank & Trust Company 
171 South Broadway
Saratoga Springs, N.Y. 12866


Excelsior Growth Fund Can Help 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.

IBANYS Spotlight Is On...


Customer Experience Solutions (CES) produces the biannual NY Banking Customer Experience Benchmarks, which include 100,000 + objective reviews by households and businesses about all banks they use. CES provides the insight you need when it comes to understanding banking customer benchmarks, From measurements of perception of overall quality and customer service to the ease-of-use of technology and bank practices to evaluation of levels of loyalty and vulnerability, CES creates custom CX programs that provide banks with a wide range of insights into the customer and prospect experience within their competitive environment.  CES interviews customers at every institution in New York to gain their ratings on 53 different customer-centric metrics. Subscriptions provide banks with a best-in-class Customer Experience Measurement program with ongoing objective customer feedback and competitive benchmarking. 

For more information, contact Bruce Paul, CEO(203) 906-8923, bruce@cescx.com. Or, visit the website at www.cescx.com.

IBANYS Preferred ProvidersPreferred
For more information on IBANYS Preferred Partners - click here: https://ibanys.net/preferred-partners/
Did You Know?

. . .That the the use of credit cards originated in the United States during the 1920s, when individual firms such as oil companies and hotel chains began issuing them to customers for purchases made at company outlets? The first universal credit card that could be used at a variety of establishments was introduced in 1950 by the Diners' Club, Inc. and required payment in full each month.

The first 
debit card may have hit the market as early as 1966, according to the Kansas City Federal Reserve. The Bank of Delaware piloted the card, and by the 1970s, several other banks were trying out similar ideas. 

. . .Now you know. 

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