Your IBANYS Team: 
Working Together To Make 2016 A Great Year 
For New York C ommun ity Banks !
 
In This Issue

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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.

Partner
April 6, 2016

NEWS FROM IBANYS
 
IBANYS is pleased to announce our newest associate member: Vanacore, DeBenedictus, DiGovanni & Weddell, LLP, a Newburgh, New York based CPA firm providing audit, tax and accounting services. For more information, contact Tom Craven at [email protected], (845) 567-9000, ext. 209. Or visit the website at www.vddw.com. Welcome aboard!


IMPORTANT:
IBANYS Room Block For CFO/Senior Management Conference Expires April 15
Are you planning to attend IBANYS' May 9-11 CFO/Senior Management Conference? Please note : A block of rooms have been reserved at the Harbor Hotel in Watkins Glen. Reservations can be made by contacting the Harbor Hotel Watkins Glen directly at (607) 535-6116. Refer to group: Independent Bankers Association of NYS: CFO/Sr. Management Conference. Our room block cut-off is Friday, April 15. We cannot guarantee room availability and pricing after this date.  Single/Double rate: $159 ++village view/$179++ lake view.  We strongly recommend you make your hotel reservations early. Rooms will sell out; we cannot guarantee availability and pricing after this date. Any   cancellations must be made seven days prior to arrival. Don't delay: Make your room reservations today!
   
   
Join IBANYS in D.C. This Month 
For These Important  Meetings! 
IBANYS Members: Have you registered with ICBA for next month's Washington Policy Summit (Sunday evening, April 24 - Wednesday morning, April 27)? This is the one time all year for New York community banks to meet with our U.S. Senators and Representatives in their offices "on the hill." Senator Schumer is a key member of Senate leadership, and a member of the Senate Banking and Senate Finance Committees. We'll also meet with key members of the House Financial Services Committee such as Rep. Carolyn Maloney (D-NYC)We'll also hear from  FDIC Chairman Martin Gruenberg;  Office of the Comptroller of the Currency Comptroller Thomas Curry;  Consumer Financial Protection Bureau Director Richard Cordray;  U.S. Small Business Administrator Maria Contreras-Sweet;  Senate Banking Committee Member (and strong community banking supporter) Jerry Moran (R-KS);  Federal Reserve Board Associate Director/Banking Supervision & Regulation Kevin Bertsch, and Managing Counsel of Supervisory Policy & Outreach/ Division of Consumer and Consumer Affairs Amy Henderson; P olitical analyst Larry Sabato, Director of University of Virginia Center for Politics.  IBANYS is now scheduling our meetings with members of the New York Congressional Delegation, including key senior members of the Financial Services Committee.  We will be advocating for community bank priorities and issues, including regulatory relief through ICBA's "Plan for Prosperity" which  IBANYS supports; reform of the Consumer Financial Protection Bureau (CFPB) and its mortgage regulations; opposition to costly new accounting standards, and elimination of the credit union industry's federal tax subsidy and the abolition of the Farm Credit System. Please join us and make your voice heard in Washington on vital issues and priorities for community banks.

IBANYS Compliance Conferences Were 
A Major Success!
Last week's regional compliance conferences in Rochester and Albany were a major hit, with full houses in each spot (nearly 50 participants took part). The comprehensive program was quite favorably received: Evaluations from attendees gave the sessions a 4.5 rating on a scale of 1-to-5. Below are photos of the meeting room at our Rochester session, and of two of our many outstanding speakers and presenters: Jerry Gagne and Steve King from Wolf & Company, P.C. They did a terrific job -- both presenting, and leading our roundtable discussions. Pam Purdue of Continuity was also outstanding speaking about enforcement actions, judgements and penalties on banks. We had presentations from three regulatory agencies: The FDIC, FRB and OCC.  All in all, a very productive and successful two days, with a great deal of important information provided -- as well as a total of six CPE credits. Thanks to all for helping to make these sessions such a success.  Please note: Presentations from the Compliance Programs are now available on our website. Visit www.ibanys.net and click on the education tab, then on past meetings.


  Scene From Rochester Compliance Session      
Jerry Gagne & Steve King (Wolf & Co.)

UPCOMING IBANYS EDUCATIONAL PROGRAMS
board conference
IBANYS Programs Designed For 
New York Community Banks
One of the most important functions IBANYS provides to our members is education. Through our conferences, seminars, webinars and publications, we hope to keep you informed and up-to-date on the important trends, developments and activities impacting New York community banks. We held our Regional Compliance Conferences last week in Rochester and the Capital District. In the weeks and months to come, we will hold our regional Bank Directors Conferences (next week, April 13 & 14, in Rochester & the Capital District), our CFO/Senior Management Conference in May and our second annual Lending Conference in June. In October, we will hold our Annual Convention, and our Regional Security Conferences.  We also offer a full menu of webinars designed specifically to meet the needs of community banks (see our link later in this newsletter), and also offer select webinars offered by outside experts. We thank the efforts of our member banks, who work closely with staff to develop program content that is timely and relevant to their institutions and our industry. 

IBANYS' 2016 events may be viewed online
at www.ibanys.net under education/upcoming meetings. We provide CPE credits, and offer New York community banks the latest information and tools for profitability and success. Our preferred provider partners and associate members enjoy unique opportunities for networking,  sponsorship & exhibiting opportunities.   
 
 
 
Regional Bank Directors Conferences 
Can Help Solve The Puzzles
Board members of New York community banks face growing challenges in the aftermath of the latest banking and financial crisis. As the number of community banks have declined nationally, the burdens imposed by federal and state regulations had increased. So too has the cost of doing business and serving our customers and communities. Now, with serious issues related to cyber security, pressure on earnings and the current interest rate environment, banks must ensure their directors, officers and senior management teams are fully informed and prepared to cope with these challenges with the tools and strategies they need to survive and thrive. IBANYS' Regional Directors Conferences April 13 and 14  in Rochester & Castleton (Albany) will update your bank's board members on a number of important and timely issues and trends.    
Our agenda will include: 
  • Shareholder Succession: Is This The Way Out Of Consolidation?
  • How Banks Should Make The Decision To Buy Or Share
  • Making Sense Of A Nonsensical World
  • CECL & The New Capital Impacts Facing Community Banks
  • Cyber Security: The Challenge Of IT Governance
  • Strategic Planning: It All Begins & Ends 
  • A Question & Answer Session
Our Speakers Include:
  • T.W. Shannon (Managing Director, Premier Consulting Partners)
  • Heather Archer Eastep (Partner, Hunton & Williams)
  • Michael Jamesson (Principal, Jamesson Associates)
  • Randy Rabe (Director, Credit Risk Management)
  • Jordan Pike (Director of Security, ncino)
  • Karl Nelson (Founder & CEO, KPN Consulting)
 
 
CFO/Senior  Management Conference  
May 9-11 at the Harbor Hotel, 
Watkins Glen, NY
This conference was developed with the input from IBANYS' CFO Peer Group and reflects key topics, issues & challenges important to our industry. CEOs, CFOs, COOs,  Presidents, Senior Managers, Bank Directors and ALCO teams should plan attend. The program was designed to help community banks gauge the potential impact of higher interest rates, prepare for the final guidance on the FASB's current expected credit loss model, change the culture surrounding enterprise risk management and gain insights on how to approach key strategic issues including cyber security, credit stress testing, and succession planning. Participants can earn up to 11 CPE hours (1.0 in taxation). We'll have g olf, networking opportunities during breakfast, lunch, cocktail receptions and dinners -- including a reception/dinner cruise on Seneca Lake. This is also a chance for our associate members & preferred providers to sponsor an event, and be recognized throughout the event. Please click on links below with details on the program, registration and sponsorship. A block of rooms have been reserved at the Harbor Hotel Watkins Glen. Cut-off date is April 15, after which we cannot guarantee room availability.  C ancellations must be made seven days prior to arrival. 

The Program Will Feature: 
  • 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 Forrester, 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 Credit Deal-Is This Something Our Bank Should Invest In? 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 Peter Brown, Senior Consultant, Sageworks
  • Managing Your Investment Process: Best Practices For Assuring Consistency & Success, by Greg Roll, Senior Vice President, Investment Strategies, Vining Sparks
  • Public Funds: Enhancing Your Deposit Business In 2016, by Joe Hooker, Managing Director & Kevin Hamilton, Regional Director, Promontory Interfinancial Network
  • Bank Cybersecurity: State Of The Threat Landscape, by Alex Hernandez, Vice President, Customer Solutions, Praesidio
  • 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 have networking opportunities at refreshment breaks, breakfasts, lunches and dinners.
Thanks our sponsors, endorsed providers & affiliates for their continued support, at this conference and throughout the year!
  • Federal Home Loan Bank of NY - Dinner Cruise
  • FTN Financial - Cocktail hour (Tuesday)
  • CEIS - Dinner Wine (Tuesday)
  • Pentegra Retirement Serves - Closest-to-the-Pin & Longest Drive
Continuity
Pentegra Retirement Services
Promentory Interfinancial Network
T.Gschwender & Associates, Inc.
Travelers
Wolf & Company, P.C.
ICBA
ICBA Securities
 
CLICK HERE for updated sponsorship opportunities.
 
Annual Lending Conference
Join us June 28-29 at the Woodcliff Hotel & Spa in Fa irport  (Rochester) for our Second Annual Lending Conference, which is co-sponsored by T.Gschwender & Associates. Who should attend? Loan Officers, Mortgage Officers, Consumer Lending Officers, Commercial Lending Officers, Credit Officers, CFOs and other members of the bank's management team involved in there credit and lending process. 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. 
 
Presentations will include:
  • Outlook for Credit & Bank Profitability,
    with Chris Nichols, Chief Strategy Officer, CenterState Bank
  • Credit Stress Testing: What Examiners Expect, and Steps To Deliver, with Shawn O'Brien, President, QwickRate
  • The New ALLL -- A CECL Primer For Lenders, with Emily Bogan, Director of Consulting, Sageworks
  •  The Loan Portfolio Dilemma: Funding Fixed Rate Products, with a representative from the Federal Home Loan Bank of New York
  • Mortgage Pipeline Management Best Practices, with Robert Perry, Managing Director of ALM First
  • The Role Of Risk Tolerance and Risk Culture In Managing Portfolio Credit Risk, with David Ruffin, Co-Founder & Managing Partner, Credit Risk Management Analytics
  • Friend Or Foe: The Rise Of Peer Lenders & What It Means For Banks, with Armistead Boyd, VP of Product Marketing, nCino
  • Managing Credit Risk, with Bharpur "Bo" Singh, President & Owner, T.Gschwender & Associates
  • The Loan Participation Puzzle: The Key To Diversification, with Lori Betting, Executive Vice President, Alliance Partners
  • Navigating The Headwinds Of Change: Lessons Learned From The Great Recession, with Karl Nelson, Founder & CEO, KPN Consulting
Watch for additional updates on speakers, further details on program agenda and registration information.
 
 
IBANYS Annual Convention: 
Oct. 3-5,  The Turning Stone
IBANYS' 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. With every member of the New York State Legislature and New York Congressional Delegation up for election, and control of the State Senate expected to be hotly contested, it will be a timely presentation.
We'll also hear from keynote speaker Ray O'Conor . Ray is a former President of Saratoga National Bank & Trust and former IBANYS Chairman. He is the author of  She Called Him Raymond: A True Story of Love, Loss, Faith and Healing --   a candidate for the 2016 Pulitzer Prize for non-fiction.  Ray has also null been a 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, and 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 Members: Check Out These 
IBANYS Initiatives!
Last year IBANYS introduced two exciting new initiatives to benefit member banks, We encourage you to take full 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!

GOVERNMENT RELATIONS UPDATES

new york state capitol
IN ALBANY 
The Legislature approved and Governor Cuomo signed a state budget for Fiscal Year 2016-17 on April 1. The minimum wage in New York State will rise, but differently in different regions of New York State. In New York City, Nassau, Suffolk and Westchester Counties, it will move to at least $15 per hour by 2021.  In the rest of the state, the minimum wage will increase to $9.70 in 2016, then rise another $.70 per year to $12.50 in 2020. The State Department of Labor and the Director of the Division of Budget will then consult on whether or not the rest of the state should increase to $15 per hour.  The changes will be reviewed each year. If they appear to strain any parts of the state's economy, officials may suspend the increasing minimum wage. The State  will take less money from the middle class, reducing taxes on those making between $40,000 and $300,000 annually to 5.5% once cuts are fully phased in. S tate budget experts say that by 2025, the middle class will save $4.2 billion. The budget also expands  paid family leave to the largest program in the nation. When phased in, employees will be able to take up to 12 weeks of paid family leave to care for an infant, a family member with serious health problems or to aid in supporting the family when somebody is called into service. By 2021, 67% of an employee's average weekly wage will become the norm for the program, which will be funded through nominal payroll deductions. In tax related provisions, there were some technical corrections to corporate tax reform; a closing of the STAR tax exemption program to new applicants and replacing it a new personal income tax instead, and a credit for the special additional mortgage recording tax on certain mortgages.
  • In non-budget legislative activity, the Assembly Small Business Committee is considering legislation (A.6621-A, Kim) that would extend the small business loan fund to include micro loans to micro businesses (companies with fewer than five employees), and create a preference to lending organizations that serve them. 
  • Also, A.9746, Richardson, which IBANYS supports, has been introduced and referred to the Assembly Banks Committee. It would amend the State Banking Law in relation to the definition of "consummation" of a mortgage loan. There is not yet a Senate companion. 
  • The Assembly Codes Committee has also  reported a bill (A.1298, Weinstein/S.5242, Savino) to address mandatory settlement conferences in residential foreclosure actions by requiring new, onerous requirements -- which could extend New York's already lengthy foreclosure process even more. 
  •  A new Quinnipiac Poll found voters approve of the job Governor Cuomo is doing by a margin of 51%-38%. He is strongest in New York City and other downstate areas (with a 60% and 58% approval rating, respectively), but his rating was "underwater" upstate, where he had a 38% approval and 50% disapproval rating. A plurality of the respondents said "all elected officials should be replaced" with those who can revamp ethics in state government. The state budget did not include any ethics reform provisions.
Latest State DFS Personnel News
The NYS Department of Financial Services (DFS) appointed Celeste Koeleveld as General Counsel. Among her previous positions was serving as an Assistant U.S. Attorney in the Southern District, where she was Chief of the Criminal Division. Meanwhile, Governor Cuomo's nominee for Superintendent of Financial Services, Maria Vullo, is still awaiting confirmation by the State Senate. She is currently serving as Acting Superintendent. Ms. Vullo has  more than 25 years of practice in business litigation and investigations, was a partner at Paul, Weiss, Rifkind, Wharton & Garrison LLP, and previously oversaw the Economic Justice Division in the Office of the New York State Attorney General when Governor Cuomo was Attorney General. 


IN WASHINGTON
  • Congress returns to Washington this week after its recent recess. 
  • FASB recently announced revisions (advocated by ICBA) to ensure its Currently Expected Credit Loss (CECL) model won't be as costly or complex for community banks. The changes will allow community banks to keep using their personal understanding of local markets to determine their loan-loss reserves, rather than using the complex modeling system. Community banks may also evaluate and adjust their loan-loss amounts using qualitative factors, historical losses and current systems(spreadsheets, narratives, etc.) ICBA Vice Chair Tim Zimmerman praised FASB for listening to community bank concerns and urged the regulators and auditors to recognize these significant changes.
INDUSTRY INSIGHTS 

Latest Comments On "Too Big To Fail"
Former FDIC Chair Sheila Bair says those who want to "break up the big banks" should put their weight behind already proposed rules to make the banking system safer. She noted s ome proposals already on the table could stabilize the financial system.  "Ending 'too big to fail' is a good sound bite, but there are some actions we can take," she said. Bair cited a proposed rule to require the banks to issue "very thick cushions of long-term debt" that they could later convert into equity in a crunch, saying this would give them enough capital to carry out crucial functions, adding: "A systemic disruption is something you want to avoid for the customers of the banks. The people who use the banks." She also said the fintech industry could also help make the financial system safer, noting technology in the sector aims to make the system cheaper and more efficient. Bair said fintech can make lending more efficient, particularly on the consumer side, but it needs the traditional banking system to thrive.
Minneapolis Fed President Neel Kashkari says that while post-financial crisis changes have made the financial system more stable, policymakers need to acknowledge that large banks still pose systemic risk.  "I just don't want the American people to have a false sense of security that we've addressed 'too big to fail,' that this can't happen again.  I think some of those risks remain. And we need to consider more transformational solutions to deal with this problem once and for all."  Kashkari previously worked at the Treasury Department and at Goldman Sachs.

In Midwest: Trend Of Credit Unions 
Buying Community Banks
A recent article in the Milwaukee Journal-Sentinel notes some community banks looking to sell (because of the costs of increased regulations, succession issues or investor preference) are "turning to their competitors - large, robust credit unions - as possible acquirers." Wisconsin's largest credit union - Landmark - acquired Hartford Savings Bank in 2014. Last month, a Michigan credit union announced it plans to take over Janesville, Wisconsin-based Mid America Bank. Now, according to sources, a third bank acquisition by a Wisconsin credit union is in the works. "This is not slowing down," said a Michigan mergers-and-acquisitions specialist. "It's a trend both nationally, but certainly in the Midwest and Wisconsin."

 . . .Today's Quote:
...comes from Forbes.com's "GuruFocus" investing column. GuruFocus. Owned by GuruFocus.com LLC, it is engaged in the business of financial news, commentaries, research and publishing. 
"In what has been a difficult environment for value investors, community bank stocks remain the teddy bear that keeps the monsters at bay. No matter what nasty geopolitical event develop, what oil prices do or the mean old economists say, community banks are seeing better business demand, strong deposit growth, excellent credit conditions and a continuing consolidation trend."

IBANYS Webinars: Specifically Designed For Community Banks   

 
New York's community banks cope with a wide array of challenges. Your bank's officers, board members and employees know their responsibilities and potential liabilities are not about to diminish. Are you doing everything you can to ensure that they have access to the very latest information and tools they need to meet their responsibilities, and to properly prepare the bank for the future?  One way to do so is by signing them up for IBANYS' webinars. Our programs 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. There's a good reason  why a rapidly growing number of your industry and association peers are taking advantage of these webinars.

Review  our upcoming programs by clicking the link below:
https://ibanys.fed.financialedinc.com/store/webinar 

IBANYS Spotlights
 
. . .Promontory Interfinancial Network, LLC
Promontory Interfinancial Network was founded in 2002. Over the past decade, the company has built strong relationships with  thousands of financial institutions  across the nation. Today, it offers unique services that bring Network members and other key constituents together in a way that helps each to benefit from "the power of many" - enabling them to offer services that otherwise might be too difficult or too costly to offer on their own. Promontory helps financial institutions of all sizes thrive. 

Promontory Network members use its solutions  ̶   Bank Assetpoint®,  Insured Cash Sweep®, or ICS®,  CDARS®,  IND®, and Yankee Sweep®  ̶  to source new asset opportunities, diversify their asset portfolios, reduce collateral requirements, purchase funding, and build multi-million-dollar relationships.  Visit  promnetwork.com,  or contact Kevin Hamilton--  [email protected] , (866) 776-6426 ext. 3329 -- to find out how Promontory can help your bank manage its balance sheet more profitably.


  DID YOU KNOW. . .
. . . April is Community Banking Month? ICBA has a collection of tools and materials to help you  share your bank's story and reach out to your communities. Visit http://www.icba.biz/golocal to:
  1. Customize a  news release and send it to your local media to share the positive story of community banks, while telling your bank's unique story.
  2. Send an  op-ed to local media to educate your community about the importance of banking locally and how your bank is unique in serving the needs of your community.
  3. Share ICBA's  "Community Banks Across America" infographic on your website and on your social media channels.
  4. Take time to tweet and share on your social media channels: here are  some ideas to get started. 
  5. See ICBA's Community Banking Month advertorial that ran in the April 1 edition of The Washington Business Journal.
  6. Use Radio Ads to promote Community Banking Month in your local market.

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