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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 2016 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 Events!
IBANYS has scheduled a number of important programs for New York community banks over the next few months -- designed to address timely issues
All of our 2016 events are listed on our website (www.ibanys.net, under Education/Upcoming Meetings. Many provide CPE credits, offer our member banks unique networking opportunities. . . and afford our preferred providers, partners and associate members valuable sponsorship & exhibiting opportunities.
We'll kick off with our Regional Compliance Conferences. . .
IBANYS' Regional Compliance
Conferences will be held in Rochester and Albany on March 30 and 31.
Our sessions
will feature
presentations by federal and state banking regulators, topical presentations by outside consultants and a "bankers peer panel" discussion. We'll focus on:
- Cyber security and risk management
- CRA/fair lending/community development loans
- Flood insurance
- HMDA, BSA/AML
- Complaint management, including portal systems.
Click the link above for details.
Then, our Regional Directors Conferences will be held April 13 and April 14 in Rochester and Castletown (Albany). Program details and registration information will be available very soon.
Next comes our CFO/Senior Management Conference
May 9-11 at The Harbor Hotel in Watkins Glen, will include:
- An Economic Update from Gary Keith, Chief Economist with M&T Bank
- A Tax & Accounting Update
- A Regulatory Update
- A Cyber Security/IT Discussion
- A Discussion Of The New FDIC Compliance Manual
- Updates On Interest Rates & Investment Portfolio Management
- Best Practices Updates On Compensation & Employee Benefits
- A Discussion Of The New FASB CECL Model
- Presentations & Discussions On Trends In Banking
We'll follow with our second annual
Lending Conference June 28-29 at the Woodcliff Hotel & Spa in Fa
irport
(Rochester).
The program will review and discuss all aspects of the lending process, including loan review, risk, sales, portfolio management and the impact of CECL. . .
Finally, we will gather for our. . .
IBANYS Annual Convention: Oct. 3-5,
The Turning Stone
Our 42nd Annual Convention -- our premier educational meeting and business show of the year -- will be held at The Turning Stone October 3-5. We'll have a  full menu of top notch speakers and presenters, including keynote speaker Steve Greenberg, a veteran political analyst and commentator who will preview the critically important 2016 election for community banks. Plus, our business show, silent PAC auction and much more!. We will provide details on each program, as well as registration information, in the very near future. Watch for updates.
IBANYS will also participate in two important ICBA meetings: The ICBA Annual Convention in New Orleans, March 6-10, and the Washington Policy Summit in late April. There, IBANYS members will meet "on the hill" with Members of our New York Congressional Delegation. Watch for details.
Board of Director Meetings
- February 10, 2016 - Sovay Bank, Solvay, NY - 12:00 - 2:00 p.m.
- May 11, 2016 - Harbor Hotel, Watkins Glen, NY - 10:30 a.m. - 12:30 p.m.
- July 28, 2016 - Conference Call - 2:00 - 3:00 p.m.
- October - date and time to be announced
"Clip & Save": IBANYS Regional Meetings
- March 30, 2016 - Compliance Conference - Rochester, NY
- March 31, 2016 - Compliance Conference - Castleton, NY (Albany)
- April 13, 2016 - Directors Conference - Rochester, NY
- April 14, 2016 - Directors Conference - Castelton, NY(Albany)
- May 9-11, 2016 - CFO/Senior Management Conference - Watkins Glen, NY
- June 29-30, 2016 - Lending Conference - Fairport, NY (Rochester)
- September 28-30, 2016 - 42nd Annual Convention - location to be announced
- October 19, 2016 - Security Conference - Rochester, NY
- October 20, 2016 - Security Conference - Castleton, NY (Albany)
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GOVERNMENT RELATIONS UPDATES
Legislative Updates
Some legislators, including Sen. Democratic Minority Leader Andrea Stewart-Cousins (D-
 Westchester) are saying there should be some mechanism for easing the
property tax cap when it is as low as it currently is. However, GOP Majority Leader John Flanagan said:
"No one really anticipated we would be at this juncture," (the less-than-1 percent cap triggered by near-Zero inflation). He added
it was unlikely there would be changes this  year.
Some legislators want a straight two percent cap, regardless of inflation, while others maintain that the inflation rate is realistic guideline. Leader
Flanagan noted Gov. Cuomo is a defender of the cap, and has kept state-level spending generally at the two percent level, noting:
"The governor takes a pretty strong position on this." Sen. Flanagan also noted while State Senate Republicans have not totally ruled out considering the Governor's proposed minimum wage increase, they are "leery" and seeking "accurate information" to determine the proposal's impact on business.
Gov. Cuomo discouraged the Assembly Democrats' plan to raise taxes on the wealthy, saying:
"I don't  believe there's any reason or appetite to take up taxes this year."
Assembly Speaker Carl Heastie has unveiled the plan, which would extend and expand this year a "millionaire's tax," which isn't set to expire until 2017. Under Heastie's
plan, anyone earning between $1 million and $5 million would be subjected to a state income tax rate of 8.82%. Those making between $5 million and $10 million a year would pay 9.32%, while those with income above $10 million would be taxed at a 9.82% rate.
The
Governor's proposed budget continues to highlight the legislative focus in Albany. Budget hearings continue, and the NYS Division of Budget is not offering any 21-day amendments, but will wait for the 30-day window.
Changes to last year's corporate tax reforms have been proposed in Governor Cuomo's budget. IBANYS has reviewed these changes, and none were found to directly impact community banks. One  issue does concern the QTL asset test, which now applies to community banks as well as thrifts. It involves lease payments being deemed eligible as assets. (More banks now lease, rather than own, their branches, so the payments are not on their balance sheets.) IBANYS will consider calling for an amendment recommending these should be eligible for the deduction, regardless of whether the payments are on the balance sheet. There is a small window during which such technical changes must be made.
Two bills sponsored by Assembly Banks Committee Chair Annette Robinson were reported by the Committee. A.3385 would impact CRA, requiring NYS DFS to submit an assessment of the bank's ability to deal with a spectrum of issues (e.g. small business loans, farm loans, etc.) even if the proposed application (for a branch, an ATM, a merger, etc.) is approved.
Other Albany News
The
special election to fill the vacant State Senate seat of former Senate Majority Leader Skelos in the
 9th S.D. (L.I.) will be April 19, in conjunction with the State's presidential primaries. Republicans are running a political newcomer Chris McGrath, a trial attorney, against Democratic Assemblyman and former federal prosecutor Todd Kaminsky.
Governor Cuomo swore in J
anet DiFiore as Chief Judge of the State Court of Appeals. Meanwhile the State Senate confirmed former U.S. Attorney
Michael Garcia, a Republican, to fill the final vacancy on the Court of Appeals.
IN WASHINGTON
The NCUA Credit Union Proposal
In a comment letter, ICBA wrote the NCUA's planned expansion of field-of-membership rules would violate the Federal Credit Union Act and further erode any meaningful distinction between tax-exempt credit unions and taxpaying  community banks.
Among its provisions, the NCUA proposal would recognize entire congressional districts as local communities without regard to population-allowing community credit unions in seven states to serve the entire state. Another provision making it easier for tax-exempt credit unions with multiple common bonds to add new groups contradicts the statute's clear preference for separately chartered credit unions. ICBA noted t
hese provisions "make a mockery of the term 'local' and would likely result in much larger credit unions serving larger and more geographically diverse areas. ICBA has worked with state community banking associations, including IBANYS, to build strong grassroots opposition to the plan. The ICBA letter concluded: "This proposal is another example of the NCUA attempting to inappropriately and illegally extend the industry's government-subsidized competitive advantage and shows how captive the agency really is to the industry it regulates. If credit unions want to eliminate the common bond requirement and operate like banks, they should be taxed like them and required to meet the same set of regulatory standards. They can't have it both ways."
In other federal news:
- ICBA supports legislation (H.R. 4500, the "Community Bank Reporting Relief Act"), which would permit highly rated, well-capitalized community banks to file a short-form call report in the first and third quarters of every year. It would enact a provision from ICBA's "Plan for Prosperity" agenda that is endorsed by IBANTS.
- President Obama sent a $4.1 trillion budget proposal to Congress Tuesday. include a new unemployment insurance plan that would cover half of a worker's lost earnings up to $10,000 for those making under $50,000 a year. The budget would reduce deficits by $2.9 trillion in that 10-year window, much of it by assuming a range of new tax revenues that essentially have no chance of becoming law. The budget would also double the funding of two major financial regulators: the Securities and Exchange Commission and the Commodity Futures Trading Commission.
INDUSTRY INSIGHTS
Yellen Testifies Before House Financial
Services Committee
In testimony today before the House Financial Services Committee, Federal Reserve Chair Janet Yellen
said there are good reasons to believe the United States will stay on a path of moderate  growth that will allow the Fed to pursue "gradual" adjustments to monetary policy. She stated that the Fed has not completely researched whether implementing negative interest rates would be legal, and that she does not expect the Fed will cut rates anytime soon and considers the risk of recession to be low.
She noted that family incomes and wealth are rising, domestic spending "has continued to advance," and business investment (outside the oil sector) accelerated in the second half of the year. Chair Yellen expects the labor market to continue to improve, and that inflation will eventually rise toward the Fed's target despite a recent drop in inflation expectations. She noted
some weaknesses in the global economy have become self re-enforcing. An accompanying report said the U.S. financial sector "has been resilient" to stress from oil and weakening corporate debt markets around the world, with "limited" exposure among large U.S. banks. But "if conditions in these sectors worsen...wider stresses could emerge."
Survey: Loan Demand, Interest Rates
Top Concerns Of Banks
According to a a new survey by Cornerstone Advisors, for the first time in five years, regulatory burden is not at the top of bank and credit union  CEOs' list of concerns. Instead, the biggest concerns are loan demand and the interest rate environment.
Nearly two-thirds cited loan demand as a top concern for 2016, up from 44% in 2015.
In addition, nearly twice as many banks as last year indicated they'll look to non-traditional lines of business (insurance, trust, and wealth management) and commercial customers for growth opportunities. (Many credit unions will look instead to improved sales and marketing methods as a source of growth.)
Community Banks: Control Your Health Care Costs, Retain Your Employees
A Forbes article (November 23, 2015) on healthcare innovators on the success of TelaDoc demonstrates the company's outstanding performance to date, and likely growth in the future. The article notes: "Patients with a wide array of non-emergency medical conditions obtain the care they need -- from diagnosis to treatment to necessary prescriptions -- quickly, conveniently and affordably."
Click here to read the full article.
Here's a way to lower your health care costs, and offer a boost in employee benefits that could help retain employees. The "My Wellness Resource Card" offers a
low-cost, non-traditional program to save time and money, and allow your bank to  provide on demand health care from U.S. board-certified doctors. They'll provide diagnosis, treatment options and necessary prescriptions via unlimited telephone medical consultations. The program will provide discounts and significant savings on a variety of medical and dental products. Sponsored by My Wellness Resource, Inc. and IBANYS, this program is designed to improve productivity, decrease absenteeism and boost morale without straining your bottom line. It's a way to provide health care benefits, reduce cost and retain employees.
Click here
and
here
to learn more about this exciting new alternative, or visit
www.ibanys.net
for details/to enroll.
"Cure The Blue" Is Fighting Prostate Cancer
-- Join The Battle!
The Buffalo Bills Alumni Foundation and IBANYS have joined to lead the effort to raise funds and awareness regarding prostate cancer research in New York State. IBANYS' member bank Lake Shore
Savings Bank is among the community banks strongly supporting the campaign: Its "Cure the Blue" ribbon pins are available for purchase for a donation at all eleven branches, and Lake Shore conducted a branch wide fundraising event earlier this fall. As Lake Shore's President & CEO Dan Reininga 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 YOUR bank or firm to join this effort?
NEWS ON THE ECONOMY
Latest On Subprime Auto Loans
The percentage of auto loans to buyers with the poorest credit ratings is growing faster than the rest of the auto finance market, according to a new report by
Experian Automotive.
In addition to the growth in subprime and deep subprime auto loans, the report also shows a slight decrease in auto loans one month past due but an increase in auto loans at least 60 days' delinquent. In the fourth quarter, 0.77% of all auto loans were at least two months past due. The average amount owed on the loans 60 days past due was $737 to $3,042, depending on the credit score.
As auto sales climbed to a record high last year, banks, credit unions and the finance divisions of automakers wrote so many loans that the total amount borrowed for new cars and trucks hit almost $1 trillion in the fourth quarter.
Experian says 20.8 percent of open auto loans are now held by those with subprime and deep subprime credit ratings. That's a slight increase from the fourth quarter of 2014.
In other news, for the first time the Federal Reserve
is requiring banks to prepare for the possibility of negatively yielding Treasury rates in a round of stress tests commencing this year. The Fed said the scenario is purely hypothetical and not a forecast.
IBANYS Webinars Provide
Bottom Line Value!
Community bankers are facing significant challenges. Bank officers, board members and employees know their responsibilities and potential liabilities are not about to diminish. Is YOUR bank doing everything possible to provide the type of information and tools necessary to prepare for the future?
IBANYS' webinars are specifically designed to meet the needs of community banks. They are effective -- and, cost-effective. Your officers, directors and employees are able to participate directly from their offices.
There's a reason
why your industry and association peers are signing up in growing numbers...and why participation in IBANYS webinars has expanded dramatically over the past eighteen months.
Review
all
our upcoming
programs by clicking the link below:
https://ibanys.fed.financialedinc.com/store/webinar
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IBANYS SPOTLIGHTS:
CEIS Review, Inc.
CEIS Review, Inc. is an independently owned consulting firm serving the needs of the commercial and savings bank communities and other commercial lending institutions. Their
services include commercial loan review, international (off-shore) loan review, portfolio acquisition review, leveraged loan & specialty finance review, loan loss reserve methodology validation or refinement, loan portfolio stress testing, credit risk management process review, credit loan policy maintenance, and loan and credit seminars.
Banks and other lending organizations with an excellent portfolio quality often engage CEIS as a means to maintain the credit standards of their organization. Banks looking to improve the quality of their portfolios will retain CEIS to assist in determining an accurate reading of their risk profile, as well as to provide practical recommendations for its improvement.
Incorporating an independent consulting firm into an institution's credit risk management efforts brings with it substantial benefits. Whether it's the years of experience that CEIS' professionals bring to the table, the knowledge of ongoing industry trends, or the insightful advice regarding regulatory matters, CEIS consistently provides valuable tools for institution management to utilize in managing credit risk. For more information, visit the website at
www.ceisreview.com or
contact Justin Hill,
Marketing Manager, at
(212) 967-7380, email
[email protected].
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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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