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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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UPCOMING IBANYS MEETINGS
. . .For IBANYS' Regional
Directors Conferences
- Wednesday October 21 (Rochester)
- Thursday, October 22 (Albany)
Is YOUR Bank Doing What's Needed To
Keep YOUR Directors Informed
?
Regulators, analysts and bankers agree that director education is essential to the future success of community banks. Regulators expect board members and senior management to provide banks guidance and leadership. To do this, board members must be fully up-to-speed on the significant challenges their institutions face in today's business, banking and regulatory environment. On October 21 and 22, IBANYS will hold regional directors conferences specifically for the board members (and senior executives) of New York community banks. As our industry emerges from the latest financial/banking crisis, there has been a decline in the number of community banks, and a continued increase in
 our regulatory burden.
How can community banks survive and prosper in the current regulatory, business and banking environment? One way is by providing their board members and senior management teams with the necessary tools and best practices to help lead the bank to future growth and success. IBANYS' two single-day regional conferences will help you do exactly that.
We'll Examine Challenges YOUR Bank Faces
& Offer Best Practice Solutions
. . .Topics Include:
- 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
. . .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.
INDUSTRY INSIGHTS
Is Dodd-Frank's Effect On
Small Banks "Muted"?
That's the conclusion of a Wall Street Journal article that appeared this week in its "Economy/The Outlook" section. The article noted there is no doubt the Act has disproportionately raised compliance costs for
 small banks, but adds those banks are surprisingly resilient by some measures, and in some ways are "the picture of health." It further argues that low interest rates pose a bigger threat to community bank profits, and speculates that a rate increase by the Fed could help small banks build margins again, boost capital and support additional small business and household lending. ICBA President & CEO Cam Fine is quoted in the article: "Dodd-Frank--that term--became the poster child for every regulatory ill that's been foisted onto community banks. There are regulatory burdens that community banks face today that are real, but had nothing to do with Dodd-Frank."
To read the Wall Street Journal article in full, please click here.
Fed, CSBS Release Community
Banking Survey/Report
The Federal Reserve System and the Conference of State Bank Supervisors (CSBS) have released
Community Banking in the 21st Century: Opportunities, Challenges and Perspectives. The report was issued in conjunction with research and policy conference. The 2015 survey, developed and
 administered with the assistance of Cornell University's Survey Research Institute (SRI), was distributed to community bankers by state bank commissioners in 39 states. It provides a comprehensive view of what bankers are thinking about key issues facing their industry, and how they are responding to changes in their markets.
The survey covers such topics as the regulations most impacting community banks, the narrowing of mortgage lending product offerings, and the evolving mix of other products and services. The report summarizes town hall meetings and discussions among regulators and bankers across the country.
at
http://www.communitybanking.org.
Savings Rate Data: Mixed Signals
According to a new survey by GOBankingRates, 28% of Americans have nothing in their savings accounts, and another 21% don't even have a savings account. The rate comparison website surveyed 5,000 people and found just 29% of them
 had $1,000 or more in savings account. The data
conflicts with a recent
survey by America Saves, a campaign from the Consumer Federation of America, that found people's interest, effort and effectiveness to personally save was on the rise in September. "While no trends over the past two years are yet evident, it is encouraging that the latest Personal Savings Index numbers are so high," said Stephen Brobeck, executive director of the Consumer Federation of America and a founder of America Saves. On average, Americans saved 4.6% of their disposable income in August, according to the U.S. Commerce Department's
Bureau of Economic Analysis. That rate includes savings in retirement accounts, such as IRAs and 401(k) plans.
Have You Joined Our Cure The Blue Effort?
"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. 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:
"
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?
Community Banks: Control Your
Health care Costs
The "My Wellness Resource Card" may be your bank's solution in controlling health care costs. At the same time, you can upgrade your employee benefits with a low-cost, non-traditional program to save time and money, and help retain employees.
 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. This program 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
Possible Special Session On Minimum Wage Hike/Business Tax Cuts?
Governor Cuomo has discussed proposing a phased-in $15 minimum wage, perhaps in conjunction with a potential tax cut geared to business. The current minimum wage is $8.75 and it is due to increase to $9.00 by yearend. There has
 reportedly some preliminary, informal talk recently of a possible special legislative session before the end of the year to consider the issue, although it is still considered a long-shot that a session will actually be called. However, there is some attraction to clearing the issue off the decks before the 2016 session and election cycle begins in January.
Governor To State Agencies:
Keep Spending Flat For 2016-17
Governor Cuomo and State Budget Director Mary Beth Labate reportedly asked state agencies to
 submit budget requests "that assume zero growth from 2015-16 cash ceilings." (That excludes major items like school aid and Medicaid - both of which are projected to grow at roughly four percent, and which also vary with federal funding - as well as
 spending on major capital items.) Governor Cuomo and Director Labate want each agency's capital requests to be "consistent" with existing plans and "prioritize infrastructure projects that will create jobs and contribute to economic growth." The administration will release a proposed 2016-17 state budget in late January. The current spending plan expires on March 31, 2016.
IN WASHINGTON
Key Reg Relief Bills In House
The U.S. House will vote soon (perhaps this week) on two regulatory relief bills "inspired" by ICBA's
"Plan for Prosperity (PFP) which is strongly endorsed by IBANYS. H.R. 1553 would provide an 18-month exam cycle for highly rated
community banks with assets up to $1 billion. It would raise the threshold from the current $500 million. (IBANYS is advocating similar legislation in Albany at the state level.) Also, H.R. 3192 would provide a reasonable "hold-harmless" period for good-faith efforts to comply with TILA-RESPA Integrated Disclosure (TRID) Rule, which took effect last Saturday.
Update On Proposal To Reduce Fed
Reserve Stock Dividend
The federal highway transportation bill passed by the U.S. Senate includes a reduction in the dividend rate paid on Federal Reserve stock to offset the cost of the bill. All Fed member banks are required to purchase Federal Reserve stock, which cannot be sold, transferred or used as collateral. The  dividend helps offset the cost incurred by banks for this stock purchase. The proposal would impose a 75% cut, from 6% to 1.5%. It would essentially be an added tax on banks, and would
disproportionately impact community banks and their customers. ICBA and IBANYS strongly oppose using this dividend reduction as a cost offset for this (or any other) spending bill. IBANYS will co-sign a joint letter with ICBA and numerous other banking associations across the country. The process of moving the House version of the bill will likely begin next week.
- New York community bankers: Speak out on this issue, voice your opposition! Visit www.icba.org and click on the advocacy tab, then on the "Be Heard" grassroots tab.
Mortgage Update: Positive Signs
Total mortgage application volume surged 25.5% on a seasonally adjusted basis for the week ending October 2 compared to the previous week, according to the Mortgage Bankers Association. Refinance applications rose 24%, seasonally adjusted, and purchase applications, were up 27% and
 are 49% higher than one year ago, the highest level in five years. However, purchase application volume is less than half of what it was during the housing boom from 2005-2007. It is now back to levels comparable to the late 1990s. Meanwhile, the average loan size of applications increased by 6.9%, driven by a 12.1% increase in the average size of refinances. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.99%, lowest since May 2015.
IBANYS' WEBINARS ARE FOR NEW YORK
COMMUNITY BANKS
See Why So Many Of Your Peers Participate
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 specifically 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. . .
All Covered is the nationwide technology services division of Konica Minolta Business Solutions USA Inc., focusing on the unique computing, networking, and application needs of businesses across all verticals. Through its All Covered IT Services division, Konica Minolta helps companies achieve their goals through better management of information and more effective collaboration. Through one of their local offices in your area, you'll receive a customized solution for your IT network. All Covered has served in an IT consulting capacity to thousands of organizations across the nation in practically every major industry. As a technology consulting company with a national reach they are able to negotiate better pricing from key suppliers, expand their expertise using their vast base of knowledge from others within their organization, and stay abreast of the latest developments. Their local presence means they are readily available to you with fast response times and familiar faces. All Covered's Finance leadership team has a combined 100+ years' experience servicing Financial Institutions. In addition they hold many industry recognized certifications including: CRISC®, CISA®, CISM®, CGEIT® and CISSP®. As they state on their website: "We believe that the continued growth and success of Community Financial Institutions, Broker Dealers and RIA's is critical to the building of a strong economy. Our helping these institutions break through IT compliance barriers and mitigate cyber threats in order to compete and win the fight against the worlds mega banks."
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DID YOU KNOW. . .
. . .that according to the Peter G. Peterson Foundation, the personal savings rate in the U.S. increased after the financial crisis and subsequent recession, but is still low compared to its history? In 2014 the personal savings rate was 4.8% of disposable personal income. In the 50-year period between 1950 and 2000, the personal savings rate averaged about 9.8%. Personal savings includes contributions to retirement accounts like a Roth IRA or a 401K.
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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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