• Our busy autumn continues at IBANYS. Today, we wrapped up our annual Executive Leadership Symposium at the Harbor Hotel in Clayton, NY. We had our largest group ever for this event, as we gathered together community bank leaders, business partners, sponsors, and speakers! See below in today's newsletter for a summary and scenes from the Symposium.

• We continue building strong business partnerships with quality companies that can help community banks. KreditIQ (Agentic AI commercial loan underwriting, Bankers Cooperative Group (alternative funding for Health Benefits) and Appointment U (strategic relationship building) are the latest to come on board to work with community banks across New York State. Questions? Contact me: Johnw@ibanys.net. 

• IBANYS has announced a strategic partnership with KreditIQ, Inc. – a developer of an agentic AI platform for commercial loan underwriting. KreditIQ becomes an IBANYS associate member and preferred solutions partner, and will work with us to bring governed agentic underwriting capability to member banks through education programming, member briefings, and structured evaluation support. KreditIQ will streamline the commercial loan process for community banks, helping them reduce their time spent reviewing loans while staying directly involved in the review. . .a valuable tool for community banks throughout their loan decisioning process. Contact KreditQ CEO Mike Persichini (mike@kreditiq.ai).

• The FDIC issued its state profiles for the second quarter -- its latest quarterly summaries of banking and economic conditions for each state. Here’s the summary for New York State: https://www.fdic.gov/analysis/new-york.pdf

• Net interest margins and core deposit growth remained the top two external risks cited by community banks according to the Conference of State Bank Supervisors' latest survey. It also found: 1) Nearly 60% of community bankers voiced concern about the potential impact of stablecoins on deposits and lending capacity; 2)  Cybersecurity ranked as the top internal risk for the ninth consecutive year; 3) More than halfof community bankers said they are actively piloting artificial intelligence programs.

• The latest Independent Banker magazine details community bank cybersecurity threats and solutions “from A to Z.” The article in the October issue alphabetically breaks down key issues from AI-driven fraud to zero trust architecture. The magazine is available on the Independent Banker Website and via the digital edition. Meanwhile, Independent Banker magazine is seeking feedback for its annual CEO Outlook survey, the results of which will be featured in the January 2027 issue.

• Independent Banker magazine wants feedback for its annual CEO Outlook survey. Results of which will be featured in the January 2027 issue. The survey -- open through Thursday, Oct. 15 -- takes only a few minutes and offers insights from community banking peers across the nation. Take the survey.

• Congratulations to Michael Psyllos, President and CEO of Alma Bank in Long Island City, appointed to the Federal Reserve Bank of New York’s Community Depository Institutions Advisory Council. The council provides the New York Fed with information and insight from the perspective of community depository institutions. Members serve three-year terms. 

. . .John

IBANYS EXECUTIVE LEADERSHIP SYMPOSIUM

The IBANYS 2026 Executive Leadership Symposium kicked off on Monday, October 5, with a beautiful sunrise over the St. Lawrences River. A brief rain shower gave way to sunshine, cooler temperatures, and a refreshing breeze. Despite the cooler weather, our golfers enjoyed a wonderful day on the course at Thousand Islands Country Club, taking in the beautiful surroundings and camaraderie.

College 1:

Scenes from the opening day, including the beautiful morning sunrise, remarks from IBANYS Chairman of the Board Mark Lavarnway, President & CEO of Watertown Savings Bank, and highlights from Monday evening’s dinner.

College 2:

Our distinguished speakers share their insights and expertise with IBANYS members during Tuesday’s program, October 6.

College 3:

IBANYS members enjoy an afternoon cruise along the St. Lawrence River, taking in the scenic beauty of the Thousand Islands and enjoying time together outside the conference setting.

The 2026 Executive Leadership Symposium concludes on Wednesday, October 7, with a full day of programming designed to support and strengthen New York’s community banking leaders. The day will feature concurrent sessions for up-and-coming leaders, offering valuable insights and professional development opportunities, along with a Presidents Roundtable, moderated by Hartman Executive Advisors, providing an opportunity for bank presidents and CEOs to share perspectives, discuss industry challenges, and exchange ideas for the future.

Thank You for Making Our Leadership Symposium a Success!

We extend our deepest thanks to our sponsors, speakers, and attendees for making our Leadership Symposium such a meaningful and successful event.

To our sponsors, thank you for your generous support and commitment to advancing leadership in our community. To our speakers, we are grateful for the knowledge, insights, and inspiration you shared with our participants. And to everyone who attended, thank you for your enthusiasm, engagement, and willingness to connect, learn, and grow together.

Your collective support and participation helped create an inspiring experience filled with valuable conversations, new connections, and opportunities for continued leadership development.



Thank you for being an important part of our Leadership Symposium. We look forward to seeing you next year September 13-15, 2027 at Watkins Glen Harbor Hotel. Mark your calendars and save the date!

IBANYS OCTOBER WEBINARS

Associate and Preferred Partners

In the current market environment, elevated bond yields and attractive floor premiums can support a levered, rate-agnostic earnings strategy designed to benefit from both rising and falling rates. The result is a V-shaped earnings profile with potential upside on either side of the base case.

The strategy combines:

• A mix of fixed and floating rate investments that generate positive carry, with the floating-rate exposure providing additional income if rates rise; and
• An interest-rate floor that generates additional income as short-term rates fall below the floor strike

Impact:

Together, the investments generate base earnings from the asset-funding spread, net of the floor cost, with incremental earnings in either rate direction. Higher rates benefit from greater asset yields and reinvestment, while lower rates benefit from floor income.

Please see our Hedging Insights publication for an overview of the strategy and impact to net interest income across interest rate scenarios.

ICBA Information

ALBANY UPDATE

Legislative

• The Times Union reports Gov. Hochul is proposing legislation to ensure the minimum wage is still increased next year --  despite a provision in the law preventing it.

Taxes & Budget Items

• “The bull market is fueling a stronger-than-anticipated year for Wall Street profits,” according to a report released yesterday by state Comptroller DiNapoli. Financial sector profits reached a combined $45.9 billion in the first half of the year, up 51.3% from the same period last year. “The news brightens the fiscal picture for New York state’s budget, where tax revenue heavily relies on Wall Street.” Gov. Hochul (if reelected) is expected to come under pressure from the left to raise taxes on wealthy people and large corporations. “A big tax haul from Wall Street stands to shrink New York’s projected budget gap — potentially dampening the need to hike tax rates.” Profits could exceed $90 billion in 2026, and iIndustry jobs reached a record high this year. The industry generated an estimated $26.3 billion in tax revenue for the state in FY 2025‑26 (up 28.5% from the previous year. That represents 20.8% of all state tax collections. Personal income taxes accounted for 88.3% of securities industry-related state tax receipts. 

• New York City is extending the deadline to apply for an exemption from its pied-à-terre tax to Oct. 13, one week after a judge ruled that it botched the rollout of the surcharge, Crain’s New York Business reports.

• In September, NYS DFS issued Guidance on How to Conduct and Use Risk Assessments Required by the DFS Cybersecurity Regulation clarifying regulatory requirements and highlighting best practices for designing, conducting, and updating Risk Assessments. Under DFS’s Cybersecurity Regulation (Part 500), Covered Entities must maintain cybersecurity programs based on their Risk Assessments, and review and update the assessments at least annually and whenever a change in business or technology causes a material change to their cyber risk. The new guidance does not create new obligations. It identifies common gaps in Risk Assessments DFS has observed during examinations and investigations. Read the full guidance.

Economica & Political Items

• Democratic Gov. Hochul leads GOP candidate Bruce Blakeman by 11% in the new Marist University poll of registered voters across the state. President Trump's job approval rating is underwater: 38% of approve, while 60% disapprove. On the generic congressional ballot question, the Democratic candidate on the ballot (55%) leads the Republican (42%). https://maristpoll.marist.edu/polls/midterm-elections-in-new-york-october-2026/

• Less than a month from Election Day, Gov. Hochul reported over $33 million to work with between her campaign and the state Democratic Party. Her GOP opponent, Nassau County Exec Bruce Blakeman, reported just $178,000 on hand. That amount “is inflated by donations above the legal contribution limit, and the amount he needs to refund to donors is roughly twice his current warchest,” Politico New York reports. It also says Blakeman is more vibes than policy, with “few detailed and specific proposals for what he would actually do as governor.” President Donald Trump will be in Syracuse Friday to campaign with Blakeman, according to NY1.

• Progressives, moderates and former Democratic members of the House Financial Services Committee have reportedly expressed interest in serving on the Committee if elected in November -- and the list includes two New Yorkers: 1) Brad Lander (former NYC Comptroller, progressive and former member of the Democratic Socialists of America who’s running in the 10^th C.D. in Manhattan after defeating incumbent Democrat Dan Goldman in a primary), and 2) Micah Lasher (NYS Assemblyman and former top aide to Gov. Hochul who’s running to succeed retiring Democrat Jerry Nadler in Manhattan’s 12^th C.D. It will remain unclear until after next month’s election how many open slots the committee has, Katherine Hapgood and Jasper Goodman report for Pros.

• There has been much speculation whether Sen. Schumer should run for reelection in 2028, and if Rep. Alexandra Ocasio-Cortez (D-Bronx/Queens) might challenge him in a primary. Now, Rep. Pat Ryan (D- Hudson Valley) said he’s open to running, News 12 reports.

FEDERAL UPDATE

The House and Senate are out until after the November midterm election, when they will reconvene for a “lame duck” session.

. . .An on-demand recording of last week’s third-quarter ICBA Community Bank Briefing webinar is now available. The quarterly session featured updates from ICBA President & CEO Rebeca Romero Rainey and members of ICBA’s Government Relations team, and highlighted the recent Clarity Act vote and other digital asset developments, as well as the congressional outlook, regulatory relief efforts, and more. Access the on-demand briefing.

. . .ICBA has updated its “Advocacy in Action” government relations dashboard for the fourth quarter with the latest community banking advocacy successes and priorities. It includes “hot-button” community banking advocacy issues such as CRA proposals, AI, capital treatment of mortgage lending, community development financial institutions, and more. Access the dashboard.

. . .

Congressional

• ICBA supports H.R. 10230, Foster (D-ILL), the “Strengthening Oversight for the Financial Sector Act of 2026” -- noting the bill would partially close a loophole that has allowed credit unions to outsource their information technology and other services to credit union service organizations to avoid regulation of those services and activities. It would grant the National Credit Union Administration and Federal Housing Finance Agency authority to supervise and examine third-party vendors or service providers. Read ICBA’s letter to Foster and other members of the House Financial Services Committee. In previous letters to lawmakers and in congressional testimony, ICBA has advocated legislative changes to grant the NCUA equivalent third-party oversight authority to ensure greater regulatory parity across the financial services sector.

. . .

Regulatory

• The “American Banker” (subscription required) noted Fed Vice Chair/Supervision Michelle Bowman laid out a sweeping overhaul of the Fed’s supervisory role that involves “dismantling a web of internal committees, realigning oversight into five regions and revising the definition of a community bank.” Also, “Punchbowl News” @PunchbowlNews noted the Fed plans to overhaul how it will monitor U.S. banks, Federal Reserve Vice Chair for Supervision Michelle Bowman said Tuesday.

• Fed Vice Chair/Supervision Bowman said the agency is restructuring its supervisory functions: 1) The Fed is realigning the supervisory structure into five regions, each led by a regional leader; 2) By following state lines rather than Reserve Bank District boundaries, the agency can coordinate more effectively and efficiently with its state and federal regulatory partners. Bowman said the Fed is working to ease the regulatory burden on community banks by lowering the Community Bank Leverage Ratio, adjusting asset thresholds, addressing competition standards in mergers and acquisitions, supporting de novo bank formation, and streamlining the call report.

• ICBA strongly supports a proposed rulemaking to update and index the dollar thresholds for certain extensions of credit to insiders of FDIC-supervised institutions. Read ICBA’s letter to the FDIC regarding its proposal to modernize and index Regulation O. 

• ICBA said efforts to strengthen the Robocall Mitigation Database and prevent scam calls would significantly benefit community banks, their customers, and the broader financial ecosystem. Read ICBA’s letter to the Federal Communications Commission.

• The American Banker (subscription required) reported FDIC Chair Hill said regulatory changes to bank supervision and M&A rules are meant to improve safety and soundness, not water down oversight. 1) The FDIC has overhauled the bank exam process and CAMELS rating system to focus on fundamental financial risks rather than administrative policies; 2) The proposed rules to fast-track merger approvals will factor credit unions and fintechs into competitive market analysis; 3) New rules for stablecoin issuers require 1:1 asset reserves, two-day redemptions, and 12 months of liquid expense backstops — and exclude stablecoins from pass-through deposit insurance. https://www.americanbanker.com/news/fdics-hill-defends-supervision-and-merger-reforms?utm_campaign=NL_AB_Daily_Briefing_10072026&position=2&utm_source=newsletter&utm_medium=email&campaignname=NL_AB_Daily_Briefing_10072026&oly_enc_id=6022C2600790I8Z