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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.
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For more information, visit:
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INDUSTRY INSIGHTS
Beige Book: New York Economic Updates
The Federal Reserve released its seventh and next-to-last Beige Book for 2015, chronicling the economic developments in the Fed's 12 Districts since the last report roughly six week earlier. In the New York District, small to medium sized banks in the District report increased demand for commercial mortgages but little change in demand for other types of loans. Demand for  refinancing is reported to have weakened for the first time in 2015. Bankers reported credit standards were unchanged across all loan categories. Respondents report a decrease in spreads of loan rates over cost of funds across all loan categories, with the exception of consumer loans, for which bankers reported no change. The decrease in spreads was most prevalent for commercial mortgages. Banks also reported an ongoing decrease in delinquency rates across all loan categories, except for consumer loans, where delinquency rates were reported to have leveled off.
The pace of growth was characterized as modest. Non-auto retail sales were "mixed" and vehicle sales were "steady to stronger." There was a modest-to-moderate increase in e
mployment, and increased wage pressure for both skilled and less skilled workers. Manufacturing activity declined, the service-sector activity expanded on balance, t
ourism weakened, the inventory of available homes was low, but strong multi-family construction was reported. There was some pullback in new commercial construction, but activity remained fairly brisk.
Other Economic News:
- U.S. consumer sentiment came in higher than expected in October, according to a new report from Thomson Reuters/University of Michigan. A preliminary reading on that
 index was 92.1, higher than the previous month's reading of 87.2 and above Reuters' estimates for 89. Personal financial expectations rose to their highest level since 2007. So did consumers' views toward purchases of durable goods. Consumers expect a continued economic expansion, but did foresee challenges from low commodity prices and weakened global growth.
- New foreclosures are nearly normal, but bank repossessions, the final stage of the foreclosure process, jumped 66% year over year in the third quarter of this year,
 according to RealtyTrac. That's the largest annual rise ever recorded in bank repossessions by the firm. More than 123,000 homes went back to the bank in just three months. "In states such as New Jersey, Massachusetts and New York, a flood of deferred distress from the last housing crisis is finally spilling over the legislative and legal dams that have held back some foreclosure activity for years," said Daren Blomquist, vice president at RealtyTrac. New York and New Jersey have the longest foreclosure timelines in the nation. In both states, foreclosures can take well more than three years. "That deferred distress often represents properties with deferred maintenance that will sell at more deeply discounted prices, creating a drag on overall home values."
- Job openings fell in August, missing analyst estimates, according to the the U.S. Bureau of
 Labor Statistics. Job openings decreased to 5.4 million; analysts polled by Thomson Reuters had expected the index to come in at 5.63 million. The total number of job openings has increased over the past 12 months for non-farm, private businesses, and government positions. The job market has weakened the past two months. Employers added just 142,000 jobs in September. Hiring for the third quarter came in at 167,000 a month, down from an average 231,000 during the second quarter.
Sandler O'Neill's Webinar:
Balance Sheet Strategies for 2016 --
Wednesday, November 4, 2015 at 3:30pm EST
All too often, ALCO decisions are made based on rate predictions, risk profile history lessons, or the isolated evaluation of balance sheet components. Is your bank letting these factors dictate asset/liability decisions? Instead, balance sheets should be viewed in a dynamic and holistic way, and ALCOs should take control of strategic planning and franchise valuation expansion.
Join Sandler O'Neill's Balance Sheet Strategy team as they discuss:
- Current themes and trends from banks across the country
- Frequently-asked questions and concerns from Board and ALCO members
- Overall balance sheet positioning in relation to bank valuations
- Strategies for your balance sheet
This webinar will highlight topics your bank should be talking about in ALCO and Board meetings, and how to best prepare for 2016.
To register or for more information, contact:
Scott Hildenbrand,
Principal/Chief Balance Sheet Strategist
Sandler O'Neill + Partners, L.P.
A new article in IB Magazine on "Cure the Blue" spotlights the effort,co-sponsored and endorsed by IBANYS, to raise 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. The bank has "Cure the Blue" ribbon pins available for purchase for a donation at all eleven of the bank's branches, and plans a branch wide fundraising event during September.
Lake Shore President & CEO Dan
Reininga has noted:
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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?
Control Your Bank's
Health Care Costs
-- AND Boost Employee Benefits?
The "My Wellness Resource Card" may be your bank's solution. You can upgrade your employee benefits with a low-cost, non-traditional program to save time and money, while helping to retain employees.
 The program allows the bank to rovide 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.
GOVERNMENT RELATIONS UPDATES
IN ALBANY
Unemployment Down Throughout State
The NYS Labor Department says unemployment rates fell across New York over the past year.
Since September 2014, private sector jobs increased 135,100 to about 7.8 million. The unemployment  rate to 5.1% in September, its lowest level since April 2008. Unemployment was down
In all regions except for Elmira's rate, which stayed at 5.8% since last year.
Binghamton's unemployment rate in September 2015 was 5.5% percent compared to 6% a year earlier.
Unemployment rates dropped in the Buffalo and Niagara Falls region from 5.8% to 5.3%, and
the Dutchess and Putnam region rates fell to 4.6% compared to the 5%.
Orange, Rockland and Westchester Counties had a 4.7 percent rate, compared to 5.1%.
In Ithaca, unemployment was 3.9%, down from 4.1%.
Rochester had a 4.9% unemployment rate, down from 5.4%.
New York City had the biggest drop, from 6.5% to 4.8%.
IN WASHINGTON, D.C.
Bipartisan Effort In House Against
Reducing Fed Dividend
A bipartisan group of 150 members of Congress is urging House leadership not to reduce the interest rate banks earn from Federal Reserve dividends. The letter, signed by 103 House
Republicans and 47 House Democrats including 19 of the 26 Democrats on the House Financial Services  Committee, aske
d congressional leaders to stop any talk of lowering the rate "until there is greater examination of the issue and an understanding of the implications that such a statutory change might have on the banking system."
Leadership is considering reducing the 6% dividend to 1.5%
to help fund a federal transportation fund which expires Oct. 31. Federal Reserve Chairwoman Yellen, in her July Senate testimony, warned: "I would be concerned that reducing the dividend could have unintended consequences for banks' willingness to be part of the Federal Reserve system - and this might particularly apply to smaller institutions."
ICBA's Paul Merski called talk of slashing the rate adding "insult to injury since most medium and small banks are still waiting for regulatory relief...
No one knows what the fallout will be if banks start switching out from being Fed members to be state-chartered banks." IBANYS co-signed a letter with ICBA and numerous other financial trade associations opposing the dividend reduction.
Two New Nominees For SEC
President Obama will nominate Lisa Fairfax,
a law professor who has studied shareholder activism, to be a commissioner to the Securities and Exchange Commission. He also will nominate
Hester Maria Peirce, a former Senate aide, S.E.C. lawyer and vocal critic of Dodd-Frank, to fill a Republican vacancy on the commission. If the nominations are confirmed by the U.S. Senate, the S.E.C. would be the most diverse it has ever been. Four of five commissioners would be women for the first time. Ms. Fairfax would be the third African-American commissioner in SEC history.
IBANYS' WEBINARS FOR NEW YORK
COMMUNITY BANKS
In today's banking and business environment, community banks face a number of significant challenges. Bank officers, board members and employees understand that their responsibilities (and potential liabilities) continue to evolve. Is YOUR bank doing everything possible to provide them with the information and tools necessary? Are You Ensuring that they are fully informed, and equipped to manage the bank and guide it into the future?
IBANYS' webinars are designed to meet the needs of community banks, and are both effective -- and, cost-effective. Your bank's officers, directors and employees can participate directly from their offices. They
provide bottom line value. That's
why participation in IBANYS webinars has expanded dramatically over the past eighteen months! Take a moment to review our upcoming programs
below.
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IBANYS Spotlights. . .
. . .
New York Business Development Corporation
New York Business Development Corporation (NYBDC) was
formed in 1955. It is a consortium of 124 banks and 83 economic development agencies. NYBDC's goal is to promote the business prosperity and economic welfare of the State of New York by providing loans to small businesses at all stages of maturity with a particular emphasis on start-up, early stage and minority/women owned businesses. NYBDC makes both SBA 7(a) and conventional loans. NYBDC is examined for safety and soundness by the Department of Financial Services pursuant to Article V-A of the Banking Law of the State of New York.
- The 504 Company, incorporated in 1981, is a certified development corporation and is New York's largest SBA 504 lender and consistently ranks in the top five among the 242 certified development companies nationwide. The 504 Company's mission is to promote economic development and jobs growth in New York by making SBA 504 loans for the acquisition and/or improvement of fixed assets. The 504 Company is a not-for-profit local development company that is affiliated with NYBDC by common management.
- Excelsior was formed in 2009 as a local development company to focus on providing opportunities to promote the economic prosperity of the State of New York. Excelsior focuses on providing gap funding to facilitate access to other loan programs, construction lending for small business expansion projects and small dollar loans to start-up and early stage businesses that may not be able to access capital under traditional loan guaranty programs.
NYBDC and its related companies have a combined portfolio under management in excess of $1.2 billion and have offices in Albany, Binghamton, Buffalo, Melville, New York City, Rochester, Syracuse, and White Plains, New York, and 88 employees. The 504 Company maintains offices in Philadelphia and Pittsburgh, Pennsylvania.
NYBDC and its related companies work closely with the three SBA District offices located in New York to promote the use of the SBA loan programs. More than 20% of the SBA lending in NYS (by dollar amount) consists of loans made by NYBDC or The 504 Company.
NYBDC's mission is to assist, promote and, through the cooperative efforts of our lending partners, advance the business prosperity and economic welfare of the State of New York by providing loans to small businesses including start-up, early stage and mature businesses with a particular emphasis on minority and women owned businesses.
NYBDC seeks to offer credit opportunities not otherwise available to small business in order to facilitate access to capital in support of economic development, to create or preserve job opportunities and to stimulate the growth, expansion and modernization of small businesses in New York State. For more information, email President & CEO Pat Mackrell: mackrell@nybdc.com or call (518) 463-2268.
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DID YOU KNOW. . .
. . .that North Dakota has the lowest unemployment rate in the country at 2.8%, while West Virginia has the highest rate at 7.3%? New York State's rate of 5.1% ranks 26th among the 50 states.
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| 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." _________________________________ |
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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
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