Your IBANYS Team: 
Working To Make 2015 A Great Year 
For New York C ommun ity Banks !
 
In This Issue

Quick Links

Have You Contributed to NYSIBPAC This Year?
If not...now is the time! We need your help in this statewide election year to support candidates and committees who understand community banks' needs. Can we count on you?
CLICK HERE for our 2015 PAC contribution form. Help support IBANYS' political action efforts in New York State.

Partner
August 19, 2015

  
TO REGISTER 

FOR  IBANYS' 2015 ANNUAL
CONVENTION!
  • N.Y. Community Bankers
  • IBANYS Preferred Providers 
  • IBANYS Associate Members
  • Business Show Exhibitors
Register Today!
  • Hotel Room Block Deadline Extended Until This Friday, August 21
Join Your Industry Peers & Colleagues
Sept. 16 - 18, 2015
At The Hotel Thayer, 
West Point, New York
This year's IBANYS Convention will bring together the CEOs, senior management teams and board members of New York community banks from throughout the state. They'll be joined by executives from key partner companies affiliated with or related to our industry. The conference will will include timely educational/business sessions,
unique networking opportunities and, enjoyable recreational activities.

Earn up to 8.5 CPE credits!  IBANYS is authorized by the NYS Department of Education to award continuing professional education (CPE) credits.

Need More Details?
  • Business/Educational Sessions: (All Panel Discussions Thursday, and All Single Presenters Friday)
  • Networking Opportunities at Breakfasts, Luncheons, Dinners, Refreshment Breaks
  • Golf On West Point Golf Course: Wednesday at 11:00 AM-4:00 PM
  • West Point Tour: ("History and Tradition Of West Point"): 2:30 - 4:45 PM Thursday
  • Top Notch Trade Show & Vendors Welcome Reception
  • Trade Show will be site of our traditional PAC Silent Auction Thursday evening from 6:00 - 8:30 PM with reception and carving stations
  • Our new "6-Minute Spotlight" -- IBANYS' Preferred Providers Showcase Their Firms From Podium
Join Us At West Point:
  • Examine today's banking, business and regulatory environments. . . 
  • Explore tomorrow's strategic challenges 
  • Jim Reber of ICBA Securities ("Investment Management for 2015: What Happens When Rates Rise, or Don't?) 
  • Patrick MacKrell, President & CEO of New York Business Development Corporation ("Get It Fast When You Need It Bad--What Happens When Your Customers Go Online To Borrow") 
  • Steve Cundall, CEO - The Cornerstone Group ("Winning The Talent Game: Three Disciplines Of Great Banking Leaders")
  • ICBA Chairman Jack Hartings (President & CEO, The Peoples Bank Co. in Coldwater, Ohio) 
  • ICBA Immediate Past Chairman (and incoming IBANYS Chairman) John Buhrmaster (1st National Bank of Scotia), 
  • IBANYS Chairman Chris Dowd (Ballston Spa National Bank) 
  • IBANYS President & CEO John Witkowski; 
  • Panel discussions on such topics as: "The Branch of the Future for Community Banks", "The Impact of Cybersecurity On Banking" and "Managing Risk"
  • Kevin Christensen of SHAZAM will discuss "Emerging Payments Technology"
  • "The Passing Of The IBANYS Gavel" From 2014-15 Chairman Chris Dowd to 2015-16 Chairman John Buhrmaster 
  • PLUS, coming soon: Exciting news about our Keynote Speaker Wednesday evening. 
Convention Speaker/Panel Profiles
Periodically, we'll highlight some of the speakers and panels for our upcoming convention. On Thursday, September 17, we'll feature a panel discussion on recent trends and best practices in managing and mitigating risk by focusing on practical implications of regulatory mandates. We'll review everything from fair lending in mortgages and other areas, the future of "consumerism" under the CFPB, examiners' focus on regulatory compliance programs. . .to Reg X, Reg Z and HMDA changes. The panel will be moderated by Jay Hack, Esq. (Gallet Dreyer & Berkey) and our speakers will be Jacqueline Fenton, Supervision Officer with the Federal Reserve Bank of New York, and Dawnella Johnson, Partner and a senior person in Crowe Horwath's risk management practice. 

On Friday, September 18, we'll hear from James Reber, President & CEO of ICBA Securities, with a look at Investment Management for 2015: What Happens When Rates Rise, Or Don't?  The Fed has reached a point in its monetary policy that it never has before, and that could spell trouble for community bank investment portfolios. Jim Reber will review what are currently two different outcomes: What the fed is saying, and what the market expects. The presentation will analyze both. and suggest strategies that could help your investment portfolio. 

SPEAKER UPDATE: BREAKING NEWS:
Acting DFS Superintendent Albanese To Deliver Keynote Address At Convention
Acting Superintendent of the State Department of Financial Services (DFS) Anthony Albanese will address IBANYS' Annual Convention. Mr. Albanese has been Acting Superintendent since his predecessor, Benjamin Lawsky, resigned in June. Mr. Albanese previously served as Mr. Lawsky's Chief of Staff at DFS, and Lawsky  stressed continuity at the Department of Financial Services under Mr. Albanese in announcing his successor. "His appointment...means business as usual for the department...under his leadership D.F.S. will continue all of the important initiatives we have underway while also continuing to be a smart, modern, and forward-thinking prudential regulator."  Mr. Albanese was the main negotiator for all the bank enforcement actions under Mr. Lawsky. Before joining the department in 2011, he was a partner at the law firm of Weil, Gotshal & Manges. Governor Cuomo created the DFS in 2011 when he merged the former Insurance Department and Banking Department (which was established in 1851 and was the oldest bank regulatory agency in the nation until the merger. DFS supervises more than 3,800 entities with assets of more than $7 trillion. They include all New York State-chartered banks, the majority of United States-based branches and agencies of foreign banking institutions, all insurance companies in New York, all of New York State's mortgage brokers, mortgage bankers, check cashers, money transmitters, budget planners, and similar providers of financial services. 
MORE CONVENTION NEWS:
Support A Longstanding IBANYS Tradition:
Our "Silent Auction" 

 
Participate in IBANYS' silent auction! Showcase items from your region, or unique items others may enjoy, while supporting our New York community banking industry's  political action efforts.  
  • SILENT AUCTION ITEMS ARE NEEDED! PLEASE SEND BY SEPTEMBER 1st. . .
DONATE A GIFT: The gift donation is not tax deductible. Nationally-chartered banks must donate through a holding company, an individual officer, or a director. State-chartered banks may donate directly or through the holding company. All items shipped to IBANYS must arrive by Sept. 1, 2015. We recommend a minimum value of $100 for each donation.

. . .And, Help Launch A Brand NEW One


  
"Our 
Six Minute Drills" 
IBANYS preferred providers and select associate members the chance (from the podium, during business sessions) to take a brisk six minutes and showcase their firms, products and services - in short, to explain what they can do to help New York community banks. Registration cards will be distributed for the six minute drills. Those selected will have a contribution made in their name (or their bank's) to the "Cure the Blue" effort, co-sponsored by IBANYS to raise funds and awareness regarding prostate cancer research in New York State.


IBANYS thanks the list of firms who have already stepped forward to sponsor at the convention:
  • ACBB
  • BBN
  • Bowers& Company CPAs
  • Continuity
  • Federal Home Loan Bank of New York
  • Finger Lakes Technology
  • Five Star Bank
  • ICBA
  • Jamesson Associates
  • Main Street Checks
  • NBT Bank
  • Pentegra Retirement Services
  • Roosevelt & Cross
  • Sandler O'Neil
  • Smith & Wilkinson
  • Strategic Resource Management (SRM)
  • Wolf & Company

There are still sponsorship opportunities available! See the registration brochure below, or you may e-mail Director of Operations Linda Gregware: lindag@ibanys.net

  • The Hotel Room Block Is Extended Until This Friday, August 21.
Please Don't Delay:
The Convention Is Only One Month Away!
  
  • IBANYS Member Banks: CLICK HERE for UPDATED convention packets, including registration/ information.
  • IBANYS preferred providers, associate members & exhibitors:CLICK HERE for your registration/information packets.
Registration & information is also available at  www.ibanys.net under Upcoming Meetings.
 

Mark Your Calendars & Bring Your Board Members To. . .
IBANYS' 2015 Directors Conference
  • Wednesday, October 21 (Rochester)
  • Thursday, October 22 (Albany)
As we work our way out of the latest financial/banking crisis, we see a decline in the number of community banks, and face more and more regulatory burden. How can community banks survive and prosper in the current environment?  Further, how can community bank board members best guide and support this growth?
 
We'll look at a number of challenges ahead:
  • enhancing the branch structure
  • preparing for interest rate changes
  • ensuring strong financial performance and acquiring the requisite data
  • trends in compensation
  • ERM & The Committee Process: Directors' Role
  • Maximizing Profitability In A Consumer-Driven Market
  • Creating Shareholder Value Beyond Just The Share Price
  • The Job Of The Audit Committee
  • Regulatory & Industry "Hot Button" Issues 
Our speakers include: 
  • Shawn O'Brien, President of QwickRate; 
  • Greg Dingens, Head of Investment Banking at Monroe Financial Partners; 
  • David Ruffin, Co-Founder, Credit Risk management;
  • Flynt Gallagher, President, Compensation Advisors;
  • Phil Pratt, Senior Consultant, Digital Insight (an NCR Company)
  • Peter Scully, Managing Director, BancList.com,
  • Patrick Hughes, Partner, & Laurie Shen, Principal, UHY, LLP;
  • Karl Nelson, CEO, KPN Consulting
Click here for the full agenda and to register for our 2015 IBANYS Directors Conference.
 

GOVERNMENT RELATIONS
 
Albany 
new york state capitol  

Credit Union Chapter Amendment Signed
Gov. Cuomo signed the agreed upon chapter amendment (A.1348 Robinson/S.1808 Griffo) that modifies the credit union legislation signed in late 2014. The original legislation expanded state chartered credit unions' credit union membership and powers. The new chapter amendment requires them to be subject to greater oversight from the NYS Department of Financial Services. IBANYS opposed the original legislation in 2014.

DiNapoli: State Foreclosure Crisis Not Over  
A new report by State Comptroller Thomas DiNapoli's office says the state's foreclosure crisis is not over yet, and is getting worse in many cities. The increase is partially attributed to lingering aftershocks of the economic recession that officially ended five years ago.  Areas immediately outside New York City were found to have the greatest number of pending foreclosures in the state. The number of pending foreclosure cases grew by 47% upstate, with Long Island and the Mid-Hudson region have risen 63% from the start of 2013, from 25,097 to 40,985. Due to New York State's judicial foreclosure process, a private label RMBS loan in the state spends an average of 1,498 days in foreclosure proceedings, up from 1,339 days in 2013. Former NYSDFS Superintendent stated in May that "...the foreclosure process is not only unacceptably protracted, but also unquestionably damaging for New Yorkers, including the homeowners it is intended to protect."

State Conservative Leader Backing GOP Senate Candidate In Southern Tier Special Election
State Conservative Party Chairman Michael Long is supporting Republican Fred Aksshar in the special election to be held this November to fill the NYS Senate seat vacated by the resignation of former Deputy Majority Leader Thomas Libous (R-Southern Tier). Akshar is opposed by Democratic former Broome County Executive and State Motor Vehicles Commissioner Barbara Fiala, who has been endorsed by Gov. Cuomo. While Long's announcement carries influence, local party leaders will make the eventual endorsement. 

Washington, D.C.

Congress continues its August recess. IBANYS joins with ICBA in encouragig community bankers to reach out to their local Members of Congress to urge them to support regulatory relief for community banks, oppose the credit union industry's effort to loosen critical safeguards on member business lending, and invite them to join you in your bank as "community bankers for a day" to gain a better understanding of the impact of regulatory burden. 

Continuity's Free Webinar Sept. 3rd: 
Worried about the how the deluge of new flood insurance regulations will impact your institution? In this session, we separate fact from fiction and break down the new interagency rules affecting loans in flood hazard areas. The surge of updates include changes regarding detached buildings, mandatory escrow, and forced placement clarifications. These significant changes become effective in two waves: October 1, 2015 and January 1, 2016. Don't wait for the high-water mark: begin your planning and preparation now!  


INDUSTRY INSIGHTS

Dodd Frank Impact On Community Banks?
An American Banker article examines the state of community banking in the nation, and the impact of Dodd Frank on the industry. To read the full article, click here. Among the highlights:
  • The banking industry continues to shrink, how big a role Dodd-Frank is playing in the decline is debatable. Overall, the total number of banks in the country has been gradually declining for decades. There were more than 18,000 institutions in the 1980s, compared to just over 6,400 in the first quarter of 2015, according to the FDIC. 
  • The pace did slow somewhat in the mid-2000s, but the shrinking has never stopped or reversed. On average, it is only slightly higher since the passage of Dodd-Frank in 2010, falling by about 4% per year since 2009. 
  • Small banks continue to make up the vast majority of the financial services industry - 98% of banks have fewer than $10 billion of assets, while 89% are smaller than $1 billion.
  • The biggest impact of consolidation has been on the largest and very smallest banks. According to a 2014 FDIC report, institutions smaller than $100 million declined by 85% from 1985 to 2013, while banks with more than $10 billion of assets nearly tripled.
  • The credit union industry has evolved in a similar fashion. The number of federally insured credit unions declined from roughly 18,000 around 1980 to just over 6,200 in the first quarter of 2015, according to the NCUA. he smallest institutions - those with fewer than $10 million of assets - have taken the biggest hit over that period.
  • While the number of institutions has declined, the financial services sector overall is growing. The banking industry controls over $15 trillion of assets, and the credit union industry oversees more than $1 trillion of assets. 
  • ICBA's Cam Fine noted: "If Dodd-Frank was written exactly as it's written except there was no Consumer Financial Protection Bureau, no Title X of the law, community banks really wouldn't feel much of the impact from Dodd-Frank - it would be marginal at the most." He added  the CFPB has been responsive to some ICBA's concerns, "they have not gone nearly far enough."
  • Dodd-Frank is far from the only challenge for the community banking industry. Others include Basel III capital standards, fair lending requirements and the Financial Accounting Standards Board's proposed current expected credit loss model, just to name a few.The New York Fed's Empire State general business conditions index tumbled from 3.86 in July to -14.92 in August, its lowest since April 2009.
U.S. housing starts rose to a near eight-year high in July as builders ramped up construction of single-family homes, suggesting that the economy was firing on almost all cylinders. A monthly sentiment index from the National Association of Home Builders rose 1 point to 61, the highest level since November 2005. Any reading above 50 is considered positive. The index stood at 55 one year ago. Regionally, homebuilder confidence in the West and Midwest each rose 3 points, to 63 and 58; the South gained 2 points to 63, and the Northeast held steady at 46. The Northeast has the smallest share of home construction nationally.  Housing s tarts in the Northeast tumbled 27.5% after being boosted in recent months as builders took advantage of tax incentives for real estate development in New York that expired in mid-June. Still, single-family starts in the Northeast rose to the highest level since October 2013.

Young Americans are waiting longer than ever to buy their first homes. The typical first-timer now rents for six years before buying a home, up from housing money 2.6 years in the early 1970s, according to a new analysis by the real estate data firm Zillow. The median age of first-time buyers is 33.  A generation ago, the median first-timer was about three years younger. The delay reflects a trend that cuts to the heart of the financial challenges facing millennials: Renters are struggling to save for down payments. Housing industry experts note that surveys still show a strong desire to buy among millennials, but that their timelines for purchasing depend on achieving more stability in their careers.

Free White Paper: Six Best Practices For a More Efficient, Regulator-Friendly CMS
Download a Free Copy of this Industry White Paper: " Six Best Practices For a More Efficient, Regulator-Friendly CMS ." Based on regulatory guidance, this white paper explains the six key objectives of an effective CMS: understanding the regulations that apply to a financial institution; keeping up with applicable regulatory changes that apply; making sure everyone understands their regulatory responsibilities; embedding regulatory requirements into daily operations; routinely verifying that the FI is on track; and having a reliable and transparent way to fix what breaks. The paper also offers a holistic solution for satisfying and implementing the six points of the CMS framework.


Support IBANYS'  "Cure The Blue" Fight 
Against Prostate Cancer
"Cure the Blue" raises funds and awareness regarding prostate cancer research in New York State. Lake Shore Savings Bank President & CEO Dan Reininga recently joined former Buffalo Bills Head Hall-of-Fame Coach Marv Levy and former Bills and Buffalo Bills Alumni Foundation members Booker Edgerson and Ed Rutkowski at a recent event on behalf of Cure the Blue. The Bills Alumni Foundation and IBANYS are spearheading this long overdue effort, and IBANYS' member bank Lake Shore Savings Bank is strongly supporting the campaign. "Cure the Blue" ribbon pins can be purchased for a donation at all the bank's branches. As  Lake Shore President & CEO Dan  Reininga stated:  " The exciting thing about this is that it's going to be a national campaign at some point. It's very exciting and we're very proud. It's what Lake Shore is all about - putting people first.
Can we count on YOUR bank or firm to join this truly important effort?

New York Community Banks:
 Control Your  Health Care Costs!
Are high deductible health insurance plans hitting your bank or company hard? The "My Wellness Resource Card" may be your solution. You can upgrade your employee benefits with a low-cost, non-traditional program that can save your bank/company time and money, and help you retain employees. It will provide on demand health care, from U.S. board-certified doctors who will provide diagnosis, treatment options and necessary prescriptions via unlimited telephone medical consultations through Telehealth. It will also provide discounts and significant savings on a variety of medical and dental products. Sponsored by My Wellness Resource, Inc. and by IBANYS, this program was specifically designed to improve productivity, decrease absenteeism and boost morale without straining your bottom line. Click here and here to learn more about this exciting new alternative, or visit www.ibanys.net for details and to enroll. 

IBANYS' WEBINARS FOR NEW YORK 
COMMUNITY BANKS
 
Sessions Designed For YOUR Bank!
New York community banks are facing a multitude of challenges in today's banking, business and regulatory environments. Bank officers, board members and employees have seen their responsibilities and potential liabilities continue to evolve. Are you doing everything possible to provide them with the information and tools necessary to remain fully informed and up-to-date so that they are equipped to manage the bank and guide it into the future? New York community banks are benefitting from IBANYS' webinars, especially designed to meet the needs of community banks in today's world. IBANYS' webinars are effective, cost-effective. Your bank's officers, directors and employees can participate directly from their offices. The sessions are timely and provide real bottom line value. That's why participation has been consistently increasing. Take a moment to review upcoming programs, including presentations on EMV and credit cards, current trends in cyber crime and payments fraud, regulator & industry hot buttons for bank directors and much more, including: 
  • New accounts 
  • CFPB rules for mortgage servicers 
  • BSA compliance 
  • TILA/RESPA disclosure 
  • Monitoring work-related social media 
  • Credit risk in agriculture lending 
  • EMV and debit cards 
  • Trends in cyber crime and payments fraud
  • Revised escrow rules
Click on the link below to review our upcoming webinars through September. 

IBANYS Spotlights. . .
in the spotlight 
Finger Lakes Technology
Finger Lakes Technologies Group, Inc. (FLTG), an affiliate of The Ontario & Trumansburg Telephone Companies (OTTC) and a Cisco premier certified partner, is rich in tradition and history as well as a model of stability in the communities they have served for over 100 years. In the 1920s, Hovey Griswold purchased OTTC, which is currently the second largest independently owned telephone company in New York State. In 1995, his great-grandson Paul Griswold founded FLTG to offer deregulated services such as telephone systems, network engineering and Internet services to residential and business customers. To this day, OTTC and FLTG are family owned and operated, with more than 15,000 business and residential customers.  When you do business with FLTG, you can count on unparalleled products, services and support. Since they are also dedicated to education and training, all of their engineers are certified in the latest technologies. FLTG provides value to customers through long-term experience, technical and professional expertise, proven methodologies, responsiveness, flexibility and innovation. Their over 2,000-mile fiber-optic network extends from Rochester to Ithaca, Syracuse and then back to Rochester, forming a complete SONET ring.  FLTG takes pride in developing custom communication and data networking solutions to meet the specific needs of your business. For added convenience, they have offices in Victor, Buffalo, Phelps and Trumansburg.  Visit the website at www.fltg.com. For more information, call (585) 924-3510 or email  paulg@fltg.com.

DID YOU KNOW. . .
That the New York State Banking Department was established by the State Legislature in 1851, and was the oldest bank regulatory agency in the nation until it was merged with the State Insurance Department in 2011 to form the Department of Financial Services? There were 57 Banking Superintendents over the course of its 160 years of existence, including fourteen Acting Superintendents. The very first Superintendent? Daniel St. John, who also served in the NYS Assembly, Senate and U.S. Congress.

 

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

Click here for quotes from Governor Cuomo and DFS Superintendent Lawsky extolling the performance and value of New York community banks.

Click here for the full NYS Study on community banking.

Click here to read IBANYS President & CEO John Witkowski's comments on the new tax changes and benefits for New York community banks as approved in the 2014-15 State Budget.

 

Click here for IBANYS' letter to the Editor of Consumer Reports Magazine correcting failure to mention community banks as an alternative to using "big banks."

_________________________________
John J. Witkowski
President and Chief Executive Officer
 
Stephen W. Rice
Director of Government Relations and Communications

Linda Gregware
Director of Administration and Membership Services 

William Y. Crowell, III
Legislative Counsel