The Federal Reserve -- still divided over where its priorities should lie -- today lowered its key interest rate but also signaled "a tougher road ahead" for further reductions. The Fed Open Market Committee cut its key overnight borrowing rate by a quarter percentage point, putting it in a range between 3.5%-3.75%. The 9-3 vote raised questions about where policy is headed from here; there hadn’t been three “no” votes “since September 2019. Dissenters included Gov. Stephen Miran, who favored a steeper half-point reduction, and Regional Fed Presidents Jeffrey Schmid of Kansas City and Austan Goolsbee of Chicago, who supported holding the line. Here’s coverage of this afternoon’s decision: https://www.cnbc.com/2025/12/10/fed-interest-rate-decision-december-2025-.html

. . . . .

As we wind down 2025, I want to thank you all for your commitment to and support of IBANYS. There will be some positive changes in 2026 for all of member banks, associate members and preferred partners. IBANYS is rolling out our new CRM in early 2026 to streamline: 

1.     Communication to our members

2.     Registration for meetings, webinars and events, including “pay on-line” registration 

3.     Resources for our banks including white papers, articles and business partner information

4.     Government Relations communication on active bills at the state and federal level.

We understand this change will not happen overnight, but we want to be sure we provide all the information needed to make this a smooth transition. The Onboarding Process will be distributed in a few weeks and we look forward to providing more support for our members, banks and business partners.

. . . . .

HUMAN RESOURCES CONFERENCE – DECEMBER 9^th

The speakers for this conference were fantastic. I want to thank Wade Connor of Pentegra, Tom Mourdant and Melissa Mueller of Empower, Wade Show and Tiffany Simpson of Smith and Wilkerson, Rick Glaser, Ryan Montgomery and Kevin Gill of Pentester and Chris Kelly from the Barret School of Banking for their time and expertise. Great info on retirement plans, organizational development, cyber security, identity theft and high risk vulnerabilities for banks and their clients and leadership models. We look forward to hearing more from each of these speakers and topics in 2026. 

. . . . .

2026 INITIATIVES: 

• CRM: In 2026, IBANYS will enhance our ability to distribute communication and simplify meeting and conference registration thru on-line payments with the help of a new CRM. We are rolling out our new CRM in the next few weeks. Please be on the lookout for more information as we map our data to the new system.

•  Innovation Project: Last year we started to build a consortium of banks to work within our new eco-system of business partners. We are excited to roll out this program to all NYS community banks to help leverage cost and provide additional resources. Updates will be provided in early 2026.   

• NYS Loan Guarantee Program with Empire State Development (ESD):  In concert with ESD, IBANYS is looking for banks to partner with us on a New Loan Guarantee Program targeted for community banks and your small business clients and prospects. We are finalizing the program rollout the week of December15 and  I will distribute information for community banks to enroll in a program sponsored by ESD.

IBANYS stands ready to work for and with you to accomplish these things -- and other priorities -- together. 

In today's newsletter we cover upcoming meetings, webinars, educational programs. . . government relations activities on the state and federal levels, and more. Please take a few moments to review, and share the details with your management teams, officers, directors & employees.

. . . . .

MARK YOUR CALENDARS – SAVE THE DATES FOR THESE

2026 IBANYS CONFERENCES:

• Our 50th Annual Convention & Trade Show at Resorts World Catskills in Monticello, New York June 8-10, 2026 -- a New Date & Location, but still our same Premier Event. Mark Your Calendars. . . and please share the news with your officers and management teams!

• Our 2026 Executive Leadership Symposium October 5-7, 2026 at 1000 Harbor Hotel in Clayton, New York.

. . .Stay tuned! As future meeting agendas are finalized, details and registration information will be shared via email, the IBANYS website (ibanys.net/meetings-schedule), and in upcoming IBANYS Updates and e-newsletters.

. . . . .

Words worth sharing: Senator Katie Britt (R-AL): “…Community banks are the backbone of Main Streets across America and I’m proud to champion efforts that enable our smaller financial institutions to have the voice andsupport they deserve.”

. . . . .

The new year is on the horizon. It’s time to examine whether your bank fully participates in IBANYS’ committees, webinars, seminars, meetings and conferences. . .Are you sharing IBANYS’

weekly updates and newsletters with your management teams? Are you keeping your senior management, officers, employees and directors fully informed on available opportunities & activities and developments impacting our industry?

It’s time to get engaged -- email IBANYS' Director of Administration & Operations Linda Gregware (Lindag@ibanys.net) or me (Johnw@ibanys.net) . . .Visit our website at www.ibanys.net and

review everything about IBANYS, our mission and what we do for New York

community banks. 

We’re still the voice at the table representing just New York community banks, just as we were founded more than a half-century ago.

2026 IBANYS MEETINGS

Stay tuned! As meeting agendas are finalized, details and registration information will be shared via email, the IBANYS website (ibanys.net/meetings-schedule), and in upcoming e-newsletters.

IBANYS JANUARY WEBINARS

ASSOCIATE & PREFERRED PARTNERS

December 8, 2025

Alert – Volume 24 of The Bankers’ Bulletin

Today we published Volume 24 of The Bankers’ Bulletin, which provides our insights into key banking industry developments from November 2025, including:

• The FRB’s memo revising its supervisory process;
• The agencies’ changes to key regulatory asset thresholds;
• An appellate court decision allowing Colorado to enforce its usury laws;
• The FDIC’s and OCC’s changes to their CRA and BSA exam procedures;
• The CFPB’s proposals to change ECOA regulations;

and more.



A link to the latest edition of the Bulletin is available here. If you have any questions related to any of the items covered in this edition of the Bulletin, please reach out to Brendan Clegg (bclegg@luselaw.com), Marc Levy (mlevy@luselaw.com), Scott Brown (sbrown@luselaw.com), Keeler Fina (kfina@luselaw.com), or your regular Firm contact. To learn more about Luse Gorman, please visit our website. 

Markets Lean Toward a December Rate Cut as Yields Test Key Technical Levels



Markets are now widely expecting a rate cut at the Fed’s next meeting on December 10, and this shift in rate policy sentiment has had a meaningful impact on markets over the past two weeks. Treasury yields are trading at key technical inflection points ahead of next week’s FOMC, with a high probability of a rate cut reinforcing a cautiously bullish outlook for lower yields despite near-term resistance in both the 2s and 10s. Further, corporate bond spreads have tightened since their November wides, while municipals are expected to remain positive in performance for the rest of the year. The labor market and inflation dynamics at the core of the Fed’s dual mandate will continue to be central to rate sentiment going forward, and while attention seems to have shifted toward slowing unemployment, it will be important to monitor this in the coming weeks.

Are You Ready For Your Next Exam

As we look ahead to 2026, regulatory expectations continue to evolve — and preparation is more important than ever. In this issue, we highlight insights from Rafael DeLeon’s article “Are You Ready for Your Next Exam?” which explores how financial institutions can navigate shifting supervisory priorities, manage emerging risks, and strengthen exam readiness in a changing environment.

Read Article

THE WEEK OF DECEMBER 8, 2025

The Municipal Market Monitor is a weekly overview covering key themes of the general municipal market. The update includes the AAA yield curve, municipal to treasuries ratio, fund flows, expected issuance volume and Piper Sandler’s weekly calendar, along with brief commentary, designed to provide issuers and investors insight into current market conditions.

Basic Information:

Cost: $1495/team for a virtual one-day session

Dates: January 22 / March 12 - choose preferred date on registration page

Session Structure: 6.5 hours, including intro and ratio review, followed by 3 years of balance sheet management and interest rate decisions

Schedule: 9:00am-3:30pm CST / 10:00am-4:30pm EST

Audience: Bank Execs, Division Heads, Bank Trainers, Directors/Trustees, Management Teams...or any banker wanting to take a swing at bank sim.

Ideal Team Structure: 3 to 5 members (although bank could include extra observers)

Check out the video below to learn more:

How's This Going To Work?

Up to 12 teams of 3-5 participants will compete virtually against banks from all over the country for bragging rights. You will immerse yourself in this one-day event simulating three years of interest rate, balance sheet management, and strategic banking decisions.

What are the logistics for each bank, you ask? Although teams could remain individually virtually corralled within a team Zoom room, we think it is optimal that you gather in a conference room setting for your effort (this also allows for some “observers” if you want training to extend a little further). We’ll need your attention for the full day, but you’ll be able to remain flexible enough to sign that stray wire transfer form or put out any of the daily mini-fires while your team carries on.



Ahead of the event, we’ll need to set up

Smartsheet access for your team (just one shared username and password) and do a Zoom-room shake-down cruise with one of your team members 15 minutes before showtime. Challenge your team – heck, challenge the bank across town! Let’s do this!

May 17-22, 2026

Barret Graduate School

Our three year graduate program. Annual one-week residency session.

Barret Graduate School Curriculum in Brief

One week per year for three years • 130+ hours of core classroom study • Nine on-campus case studies• Eight home study problems.

Over the three year graduate program, participants will have access to 200+ hours of training.

ICBA Information

ALBANY UPDATE

• Here is the 2026 New York State Legislative Session Calendar. Session will convene Wednesday, January 7 and is currently set to adjourn on Thursday, June 4. 

• Gov. Hochul will deliver her “State of the State” address Tuesday, Jan. 13 at 1 p.m. in Albany – which will followed shortly thereafter by the presenting of her proposed executive budget for FY 2026-27. 

• State Spending, Budget Is Center Stage. State spending has increased exponentially over the last decade: The state budget was $150 billion in 2015 . . .  the current spending plan is $254 billion. Hochul has taken a close look at spending since July, when changes in federal funding created a $750 million hole in the state’s current budget Her administration found the funding to fill it after she asked state agencies to tighten their belts, and those efforts are “not expected to be a one-time request.” https://www.capitolconfidential.com/p/hochul-to-pitch-efficiencies-in-state?utm_source=post-email-title&publication_id=2271190&post_id=180700151&utm_campaign=email-post-title&isFreemail=true&r=1vtg35&triedRedirect=true&utm_medium=email

• Differing Views Of State's Economy. State budget officials predict a total budget deficit of $26.8 billion over the next four years, with funding cuts for food assistance and health care for low-income families – BUT, the Fiscal Policy Institute – a think tank on economic policy -- believes the state will probably have a surplus for the next four years unless the economy crashes. https://www.localsyr.com/news/state-news/new-yorks-mid-year-budget-forecast-disputed/. Meanwhile, the Citizens Budget Commission, the budget watchdog group, is pushing Gov. Hochul to address spending gaps, strengthen infrastructure and put more cash into the state’s rainy-day fund. Read The report released Wednesday. The Public Policy Institute of New York State recently said high taxes drive businesses and people out of the state -- BUT,  the Fiscal Policy Institute says the idea that “rich people or job creators” will flee New York because of high taxes is a myth, and Census data shows that the top 1% are less likely to leave the state than other residents. . . The Business Council noted: “No matter how you try to slice it, increasing taxes makes New York even less affordable. Business taxes increase the cost of goods, income taxes drive out high income earners, generating a need for a new source of revenue — additional taxes.” https://www.politico.com/newsletters/new-york-playbook-pm/2025/12/03/kathy-hochul-tax-raise-corporate-tax-zohran-mamdani-00674452

• Gov. Hochul called up another 155 more bills to her office Monday night for end-of-year consideration, starting the 10-day clock (excluding Sundays) for her to make a decision on each of them. (That deadline is next Friday, Dec. 19.) Capitol Confidential. She may finish working her way through the rest of the bills passed this year by state lawmakers before her Dec. 31 deadline -- there are now only four bills she has not called up from the state Legislature. https://www.capitolconfidential.com/p/hochul-calls-up-155-more-bills-including?utm_source=post-email-title&publication_id=2271190&post_id=181080055&utm_campaign=email-post-title&isFreemail=true&r=8vw4g&triedRedirect=true&utm_medium=email

• Gov. Hochul announced NYS Division of Homeland Security and Emergency Services Commissioner Jackie Bray will take over the all-important State Operations Director. Bray has experience overseeing the state’s emergency response efforts. The New York Times first reported Bray’s move - - as POLITICO Pro first reported Tuesday Hochul will nominate current State Operations Director Kathryn Garcia to lead the Port Authority of New York and New Jersey, replacing longtime Executive Director Rick Cotton.

• New York was ranked by U.S. News & World Report as the 45th most affordable state in the nation. The ranking comes as the governor continues to make lowering costs a focus of her tenure. 

• The Federal Reserve Bank of New York’s November Survey of Consumer Expectations showed households’ inflation expectations remained unchanged at the short-, medium-, and longer-term horizons. Labor market expectations improved slightly, but respondents’ perceptions and expectations about their current and future financial situation became more negative.

• Financial exploitation of New Yorkers over age 60 is an issue legislators want to address next session. Last year, the FBI reported crimes targeting older New Yorkers resulted in more than $257 million in financial losses — up 27% since 2023. The NYS Office for the Aging has told a NYS legislative hearing on the issue a new partnership with SilverShield will enable older adults to send a text, email or information about a suspicious call to get advice about whether it’s a scam. The Director of the Office of Aging wants legislators to explore proposals to limit freezing a person’s bank accounts after a scam so they can pay their prescriptions and rent on time. https://spectrumlocalnews.com/nys/central-ny/politics/2025/12/03/n-y--to-launch-tool-in-2026-to-curtail-elderly-scam-victims

• Nassau County Executive Bruce Blakeman has launched a 2026 gubernatorial bid, touting his electability. “While Democrats made gains nationwide on election night, the Republican party shined bright on Long Island,” the narrator of his launch video said. “Nassau County Executive Bruce Blakeman won a Democrat county by 12 percent. https://www.nytimes.com/2025/12/10/nyregion/blakeman-trump-stefanik.html?unlocked_article_code=1.7k8.-8eA.jZ1k_QbDYNgR&smid=url-share

• If State Senate Majority Leader Andrea Stewart-Cousins (D-Yonkers) wants to remain Leader in 2027 and beyond, the rules governing the Senate will need to change. The rules for the current two-year cycle put an eight-year cap on the term of service for the “temporary president,” (Stewart-Cousins’ official title), and they also restrict Senate Committee Chairs to serving eight years consecutively -- theoretically impacting six committees including the powerful Finance Committee. Stewart-Cousins plans on being a part of that conversation, will be run for re-election in 2026.

FEDERAL UPDATE

• A new op-ed from ICBA breaks down ICBA’s data analysis showing that when credit unions  purchase community banks, consumers and local communities are harmed. As noted in Open Banker: 1) ICBA’s analysis shows that tax-exempt credit union purchases of tax-paying community banks results in diminished lending, reduced opportunities for small businesses, and fewer resources for the high-poverty areas that Congress subsidizes credit unions to serve; 2) To expand the tax base and encourage a competitive financial services marketplace, lawmakers should treat credit unions with over $1 billion in assets the way they operate—like tax-paying commercial banks. 

• ICBA and other groups urged the Federal Reserve to withdraw its 2023 debit interchange proposal until there is legal certainty in several court cases. In a letter to the Fed, ICBA and the other groups said: 1) The Corner Post and Linney’s Pizza cases have conflicting rulings on the original Regulation II, making any final rulemaking on the 2023 proposal highly questionable; 2) Leaving the debit card market in limbo creates uncertainty for issuers, networks, and merchants; 3) The Fed should release the 2023 debit card survey data, which was collected more than 19 months ago. Background: The Fed proposal would lower the maximum interchange fee that covered debit card issuers may receive for debit card transactions under Reg II, which would lead to a third of covered issuers not covering debit costs. ICBA has repeatedly urged the Fed to withdraw the Reg II proposal, See a) Its May 2024; b) comment letter; c) comments to the agencies earlier this year under the Economic Growth and Regulatory Paperwork Reduction Act review, and d) Its May letter to the Office of Management and Budget.

• The OCC confirmed permissible bank activities related to riskless principal transactions in cryptoassets. In an interpretive letter, the OCC said: 1) A national bank may engage in riskless principal cryptoasset transactions as part of the business of banking; 2) Such transactions involve a bank acting as principal in a cryptoasset transaction with one customer while entering into an offsetting transaction with another customer. 3) In these transactions, the bank does not hold the cryptoassets in inventory, serving as an intermediary in a capacity equivalent to a broker acting as an agent. The interpretive letter is the latest step by prudential and markets regulators to issue guidance on a variety of cryptoasset products and services.The OCC last month confirmed permissible bank activities related to paying cryptoasset network fees and said that a national bank may hold amounts of cryptoassets as principal necessary for testing otherwise permissible cryptoasset-related platforms. Also, the SEC in October indicated it would permit registered funds and advisers to use state trust companies to custody cryptoassets. Meanwhile, federal banking agencies in July issued a joint statement to provide clarity on banks' engagement in cryptoasset-related activities, highlighting potential risk-management considerations related to holding cryptoassets on customers' behalf. President Trump’s Working Group on Digital Asset Markets in July released recommendations for digital financial technology.

• The Trump administration announced a farm aid package of $11 billion for basic crop commodities with an additional $1 billion being considered for specialty crops following ICBA advocacy. 1) The Farmer Bridge Assistance Program is intended to assist farmers until higher reference prices established in the One Big Beautiful Bill Act kick in next October; 2) Agriculture Secretary Rollins said producers will know the level of assistance for their operations by the end of the year and payments will be made by the end of February. ICBA and others in October urged President Donald Trump to provide financial assistance to farmers as a bridge until market demand for agricultural commodities boosts prices. ICBA also sent a letter to the Treasury and Agriculture departments urging the administration’s support for a farm aid package as large or larger than the $10 billion package adopted by Congress last year. Congress may also consider other bills in coming months, such as one to advance a portion of next fall’s expected reference prices as provided for in the ICBA-supported Bridge the Gap for Rural Communities Act (H.R. 5710). 

• Members of Congress are strongly supporting community development financial institutions in current budget discussions, Politico reported. The “Morning Money” report notes: 1) The Senate Appropriations Committee’s draft spending bill allocates $324 million for the CDFI Fund in fiscal 2026, the same funding level approved for 2025; More than 100 congressional Republicans pushed back on a decision to fire CDFI Fund employees during the government shutdown; 2) Treasury responded last week that all CDFI Fund reductions in force were rescinded as part of last month’s legislation reopening the government. A group of 105 Republican senators and representatives in October urged the administration to continue carrying out the statutory obligations of the CDFI Fund, saying that eliminating work done by it could harm the U.S. economy. A group of 120 House Democrats later followed suit, saying the CDFI Fund’s work is vital in supporting families, businesses, and communities that rely on this source of economic empowerment. ICBA and other groups in October urged the administration to reconsider actions to eliminate CDFI Fund resources, noting it has long stood as one of the government’s most effective market-based strategies for fostering economic opportunity and expanding homeownership in low- and moderate-income communities. In a national news release, ICBA cited the harmful economic impact of eliminating the CDFI Fund and urged continued support from policymakers

• At the House Financial Services Committee’s “Oversight of Prudential Regulators” hearing, prudential banking regulators touted the important role of community banks and the need to reduce their regulatory burden. 1)Fed Vice Chair/ Supervision Bowman said she supports efforts by Congress to reduce the regulatory burden on community banks and advocated updating outdated statutory thresholds; 2) Acting FDIC Chairman Hill touted a recent interagency proposal to lower the Community Bank Leverage Ratio from 9% to 8% and extend the current two-quarter grace period to four quarters, as advocated by ICBA; 3) Comptroller of the Currency Gould said he wants to focus supervision on material financial risks and that community banks will benefit from a tailored framework that reflects their critical role in local economies. Committee Chairman Hill (R-Ark.) noted the goal of the committee was to “make community banks great again” and ensure any guidance or regulations should be clear and non-detrimental to the financial institutions required to follow them.

• Regional Fed presidents are at the new center of a brewing controversy (American Banker subscription required). The usually routine reconfirmation process could be in for a shake-up in February. A board of governors vote to reappoint the 12 regional Fed bank presidents might be the next focal point in the White House's effort to “bring the central bank to heel” as as the administration seeks more influence over the Fed's rate-setting committee. .