| INDUSTRY INSIGHTS
THE PRESIDENT'S CORNER
By John Witkowski
President & CEO
The first two months of 2016 have been extremely busy ones for IBANYS. We're off to a strong start, having held a Long Island Regional Compliance Conference in January
 and planned agendas for two more in Western New York and the Capital District for March 30 and 31. We've finalized programs for our upcoming Bank Directors Conference in April, CFO/Senior Management Conference in May and Lending Conference in June. Plus, we're working hard to complete the agendas for our Annual Convention at The Turning Stone Resort and our two Regional Security Conferences in October. We have listed below our 2016 meetings and conferences. I hope we see our bankers and associate members participating.
Of course, we've been active on the government relations fronts in Albany and Washington, with input from our board, G.R. Committee and members. We've reviewed budget proposals, monitored committee meetings and hearings, and tracked legislative introductions impacting community banks.We've held a board meeting, and continued our communications efforts -- through our weekly e-newsletter and our quarterly magazine,
Banking New York
.
We also continue to offer products, services and partnerships through our associate members and preferred providers. In 2015, we launched two new initiatives for consideration, and we encourage you to take advantage of them.
- The "My Wellness Resource Card" offers a low-cost, non-traditional program to help community banks to save time and money. It helps provide on demand health care from U.S. board-certified doctors who provide diagnosis, treatment options and necessary prescriptions via unlimited telephone medical consultations. The My Wellness program offers discounts and significant savings on a variety of medical and dental products, and is designed to improve productivity, decrease absenteeism and boost morale without straining your bottom line. It's an exciting new way for community banks to provide health care benefits, reduce cost and retain employees. For more information, contact Alan Justin, Managing Partner at (716) 907-5500.
- We also joined the "Cure the Blue" effort to raise funds and awareness regarding prostate cancer in New York State. We are partnering with the Buffalo Bills Alumni Foundation, and hope to see a number of IBANYS members participate. Please join us in supporting this worthwhile cause. Visit www.curetheblue.com to get involved!
Finally, I want to welcome the three new members of our IBANYS Board of Directors, and thank them for sharing their time and expertise with IBANYS and our industry:
- Thomas Carr, Elmira Savings Bank, Elmira, NY;
- Gerald Klein, Tompkins Mahopac Bank, Brewster, NY;
- Michael Wimer, Cattaraugus County Bank, Little Valley, NY.
IBANYS welcomes our newest associate member:
Freed Maxick CPAs, Inc. -- one of the largest accounting and consulting firms in Western New York and a top 100 largest CPA firms in the country. Serving closely held businesses, SEC companies, governmental and not-for-profit clients across the state, as well as nationally and internationally, Freed Maxick mobilizes high-performance professionals to guide client growth, compliance, security and innovation.
Don't Miss These Upcoming
IBANYS Meetings!
IBANYS' 2016 events may be viewed online
at www.ibanys.net under education/upcoming meetings. They provide CPE credits, and offer New York community banks the latest information and tools for profitability and success, feature unique networking opportunities
and afford our preferred providers, partners and associate members valuable sponsorship & exhibiting opportunities.
These March 30-31 in Rochester and Albany sessions
will include
presentations by federal and state banking regulators, topical presentations by outside consultants and a "bankers peer panel" discussion.
- Cyber security and risk management
- CRA/fair lending/community development loans
- Flood insurance
- HMDA, BSA/AML
- Complaint management, including portal systems
Our Regional Directors Conferences
These sessions on
April 13 and April 14
in Rochester & Castleton (Albany) will feature issues, trends and information for the board members of New York community banks. As we continue to work out of this latest banking crisis, we see a significant decline in the number of community banks around the country. Bank boards and management continue to see increasing "help" from Washington, D.C. -- much of which simply adds to the cost of doing business. With so much pressure on earnings, it's time to look for answers about how we can survive and prosper in the future. We'll examine current M&A Environment, Capital Planning Strategies, and how to prepare for any interest rate environment headed our way... and, much more!
Next, it's time to. . .
Our CFO/Senior
Management Conference
Our May 9-11 program at The Harbor Hotel in Watkins Glen will include a full program, starting with golf Monday morning at 11:00 a.m. at Corning Country Club. The conference will include a dinner cruise Tuesday evening on Seneca Lake. We will conclude the meeting with Wednesday morning's final session ending at 10:45 AM.
Here's a quick preview -- full details and registration will be provided in the very near future.
- Monday Evening Dinner Keynote Address by John Edelen, SVP & Chief Risk Officer, Federal Home Loan Bank of New York
- Economic & Capital Markets Update, by Gary Keith, Chief Economist with M&T Bank
- Deposit Analysis: Crucial Element In Understanding Your IRR Problem, by Al Forresester, CEO, FICAST Data Corp.
- Succession Planning: Developing The Next Generation Of Community Banking Leaders, by Flynt Gallagher, President, Compensation Advisors
- Revenue Enhancement: It's Not What You Think, by Lawrence Pruss, SVP & Revenue Expert, Strategic Resource Management (SRM)
- Historical Tax Credits by Roger Upton, MS Consultants
- Credit Stress Testing: What Examiners Expect, and Steps To Deliver, by Shawn O'Brien, President, Qwickrate
- The New ALLL: A CECL Primer For CFOs, by Emily Bogan, Senior Risk Management Consultant, Sageworks
- Managing Your Investment Process: Best Practices For Assuring Consistency & Success, by Greg Roll, ICBA Securities
- Public Funds: Enhancing Your Deposit Business In 2016, by Joe Hooker & Kevin Hamilton, Promontory Interfinancial Network
- Bank Cybersecurity: From A Senior Management Perspective by Dave Koto, VP of Banking Strategy, Presidio
- Strategies for Successful Partnership Between Internal Audit, ERM and the Business -- How To Maximize The Value From Your Risk Functions, by Larry Hessney, CIA, CISA, PCI, QSA, Director-Risk 7 Technology Consulting Servixes, Freed Maxick
- We'll also have numerous networking opportunities, refreshment breaks, breakfasts, lunches and dinners.
IBANYS' Second Annual
Lending Conference
Join us June 28-29 at the Woodcliff Hotel & Spa in Fa
irport
(Rochester). The program
will review all aspects of the lending process, with presentations and discussions on loan review, risk, sales, portfolio management and the impact of CECL.
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 Steve Greenberg, a veteran political analyst and commentator who will preview the critically important 2016 election for community banks.
We'll also hear from keynote speaker Ray O'Conor. Ray is the former President of Saratoga National Bank & Trust and a former Chairman of IBANYS. He is the author of She Called Him Raymond: A True Story of Love, Loss, Faith and Healing, which is a candidate for  the 2016 Pulitzer Prize for non-fiction.
Ray has also been weekly
newspaper
columnist, Special Agent with the U.S. Department of Defense and U.S. Border Patrol Agent. His presentation will share the story behind his book, provide a look into the true tale of two ordinary people who led extraordinary lives during the most tumultuous of times.
Plus, we'll also hold our business show, silent PAC auction and much more! Watch for program details and sponsorship opportunities.
IBANYS will also participate in two important ICBA meetings: The ICBA Annual Convention this week in New Orleans (March 6-10), and the Washington Policy Summit April 24-27, where IBANYS members will meet with Members of our New York Congressional Delegation. Please participate!
Share
With Your Officers, Directors
&
Senior Management Teams
- 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 - Castleton, NY (Albany)
- May 9-11, 2016 - CFO/Senior Management Conference - Watkins Glen, NY
- June 28-29, 2016 - Lending Conference - Fairport, NY (Rochester)
- October 3-5, 2016 - 42nd Annual Convention -Turning Stone Resort & Casino, Verona, NY
- October 19, 2016 - Security Conference - Rochester, NY
- October 20, 2016 - Security Conference - Castleton, NY (Albany)
GOVERNMENT RELATIONS UPDATES
- According to the Consensus Economic and Revenue Forecast Report -- a memo released by the Governor's Division of Budget and by top legislative finance aides -- state officials have determined there is an additional $225 million in revenue for the 2016-17 state budget. The deadline for enacting state budget for FY 2016-17 is April 1. The report also found that while the state labor market will remain healthy, growth will slow going forward, with a consensus of 1.4% of growth. Meanwhile, Assembly Speaker Carl Beastie (D-Bronx) continues to say thebincrease in the state's minimum wage should be included in the final budget agreement.
- With February now ended, and budget issues dominating in Albany, there were just six days during the month when the Assembly and Senate were both in session. Only five bills have passed both houses to date.
IN WASHINGTON
- The House Financial Services Committee today is scheduled to markup legislation (H.R. 2896) to require federal banking agencies to tailor regulatory actions based on the business model and risk profile of the regulated institutions. Regulators would be required to weigh the compliance impact, cost and liability risk of their regulations. Regulators would also have to report to Congress and review all regulations adopted over the five years prior to enactment. ICBA is supporting the legislation.
- The Office of the Comptroller of the Currency (OCC) issued guidance on its process for allowing banks to respond to potential noncompliance with Bank Secrecy Act (BSA) requirements. Banks have 15 days from issuance to provide information elating to potential noncompliance or repeat problems. Visit www.occ.gov/news for details.
INDUSTRY INSIGHTS
Fed's Dudley "Less Confident"
Than Before
Federal Reserve Bank of New York President William Dudley said yesterday he sees downside risks to his U.S. economic outlook.
"At this moment, I judge  that the balance of risks to my growth and inflation outlooks may be starting to tilt slightly to the downside."
Although he still expects the U.S. economy to grow about 2% this year, "...on balance, I am somewhat less confident than I was before." Dudley is a close ally of Fed Chair Janet Yellen and a permanent voter on U.S. monetary policy. The Fed next meets in mid-March to consider monetary policy, and is widely expected to leave rates unchanged.
Mortgage Updates
Total mortgage application volume decreased 4.8% on a seasonally adjusted basis for the week ending February 26 from the previous week, according to
 the Mortgage Bankers Association.
Applications to refinance decreased 7% from the previous week, seasonally adjusted, falling to the lowest level since the start of the year. The average amount for refinance loans was $279,200, the lowest since mid-January. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.83% percent from 3.85%, with points decreasing to 0.39 from 0.42 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans, according to the MBA. Mortgage applications to purchase a home fell 1% for the week, but are 27% higher than the same week one year ago.
Consumer Confidence Update
The Index of Consumer sentiment hit 91.7 in February, the University of Michigan said Friday. Analysts expected the consumer sentiment index to hit 91 for February, down from 92 in
 January, according to Thomson Reuters consensus estimate.
"Consumer confidence nearly recovered the entire small loss it recorded at mid month," said Richard Curtin, the survey's chief economist. The survey measures consumers' attitudes toward current economic conditions and future expectations. Consumers' assessment of current economic conditions hit 106.8 for the month, up from 106.4 in January. Future expectations hit 81.9, down slightly from 82.7 the prior month. February's reading is still below this time last year, when the index hit 95.4. Meanwhile, Consumer spending in January was supported by a 0.5% rise in income, the largest increase since June, and added to a 0.3% increase in December. Wages and salaries were up 0.6%, as minimum wage increases came into effect in some states. Wages and salaries increased 0.2% in December.
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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