Your IBANYS Team: 
Working to Make 2014 A Great Year 
For New York Community Banks!
  
MarchNetworks
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 2014 PAC contribution form. Help support IBANYS' political action efforts in New York State.


Partner

May 7, 2014

UPDATE:
IBANYS' 2014 CFO/Senior Management 
Conference "A Hit"
 

At press time, IBANYS' President & CEO John Witkowski reported that the Association's 2014 CFO/Senior Management Conference at Turning Stone Resort had concluded, and that early reviews were extremely favorable: "We had nearly 100 people in attendance. From their comments, participants appeared very pleased with the two-day program in terms of content, level of interaction and turnout." IBANYS will have a full update in next week's newsletter.  


LAST CALL FOR. . .

  
 
IBANYS' May 12 Webinar On The New Tax Changes!

 

Monday, May 12 is the final IBANYS webinar on the major changes in how community banks and thrifts will be taxed in New York State, including the new choices in available deductions. Banks must prepare for these changes, and decide which deduction best fits their asset bases and balance sheets. IBANYS played a major role in drafting, proposing and successfully advocating for these new tax changes. They will provide significant tax savings for New York's community banks. The webinar features Brian Flynn, IBANYS' tax expert and former KPMG partner who played a key role developing the changes. 
 
Join us for "The New Tax Changes" on Monday, May 12 from 10:00 - 11:00 AM.
 

Click here for details of IBANYS Tax Reform Webinar

 

 

(The state budget and tax reforms were a major win for New York community banks. To read IBANYS President John Witkowski's comments click here.)  

 

 With So Many Changes & Challenges...    

 

Are YOUR Board Members Fully Up-To-Date? 

 

So much has changed in today's community banking environment. . .and, in the role and responsibilitiy of community bank directors.  Whether it's bank operations, corporate governance, regulatory pressures or the economy and competition, so much is at stake. Are your board members fully up-to-date, and prepared to provide the guidance and oversight necessary to ensure the bank's future success in today's -- and tomorrow's -- banking environment?  Register your board members, and yourself, for IBANYS' one-day Directors Conference Tuesday, June 24 at The DoubleTree Hotel in Syracuse. We will review the state of community banking, and examine capital markets and regulatory actions; stress testing for capital adequacy; maximizing investment portfolio returns; capital plans and capital raising, and the board committee process. Don't let your directors miss this important opportunity to prepare for the future.

To review the agenda and to register, click here. 

  

 

 

 

. . .And, Don't Forget To Save These Dates

 

Please also mark your calendars and plan to attend two very important IBANYS' conferences scheduled for later this year. Our 2014 Annual Convention, the Association's signature meeting of the year, will be held in September in Lake Placid. Then, our Annual Security Conference will be in Rochester in October. Full details on programs, registration, sponsorship, exhibiting and much more will be available in the near future. Watch your inbox and mailbox for further information. Check IBANYS' 2014 meetings and conferences and participate! 

 

And, Remember. . .

 

 

 

IBANYS has been approved by the NYS Department of Education as an accredited provider to provide continuing professional education (CPE) credits! That covers all IBANYS meetings through March 2015, including our Directors Conference on June 24 in Syracuse; our Annual Convention, September 7-9 in Lake Placid; and, our Security Conference October 16 in Rochester.

 

 

 

 

 

 

 In Albany. . .

 

new york state capitol  

 
Credit Union Legislation Returns 

 

With the budget battles over and tax reform complete, the legislative session has returned to regular agendas. After our successful game plan on offense during the first half of session -- achieving major tax savings for community banks -- IBANYS will pivot to play defense in the session's final weeks, with several credit union related bills from previous years again on the horizon.  

  • S.7112 Griffo/A.9408 Robinson, introduced by the Senate and Assembly Banks Committee Chairs, would enhance and expand membership qualifications and investment and incidental powers of state chartered credit unions. Last year's bill would have basically removed the State DFS from its oversight role of their use of these proposed new powers, but this year's bill attempts to correct that provision in the hope of gaining support. This was passed in 2013, but IBANYS successfully urged a veto by the Governor. Here is this year's bill. Here here is IBANYS 2013 memo urging the veto, and here is the Governor's gubernatorial veto message
  • A.9037 Robinson/S.6805 Lanza would allow credit unions and banks to conduct savings promotion prize giveaways linked to savings accounts. (This also passed in 2013, but was also vetoed at IBANYS' urging since constitutional issues preclude banks from participating.) 
  • S.5016 Maziarz/A.7198 Rodriguez would create the credit union deposit program and encourage NYS to consider placing state funds into local credit unions. 
  • A.1118 Kavanagh/S.194 Squadron would include low-income credit unions in the banking development district program in cities with populations over one million (i.e., New York City); 
  • A.4520 Weisenberg/S.3161 Martins would establish a credit union municipal deposit program. 
Meanwhile, In Political News. . .
 
 
  • NYS Sen. Jeff Klein (Bronx/Westchester), leader of the Independent Democratic Caucus (IDC) that joined with the Republicans to form a ruling coalition in the State Senate, faces a primary challenge. G. Oliver Koppell, a former NYS Attorney General, Assemblyman and NYC Councilman, has announced his candidacy.
  • State Comptroller Tom DiNapoli has an announced Republican opponent: Onondaga County Comptroller Bob Antonacci is expected to have support from the State GOP and Conservative Parties.
  • Lt. Gov. Bob Duffy, widely expected not to seek reelection to a second term, said he expects an announcement on his future plans in the "very near future."

  

IN WASHINGTON. . .

 

 

House Passes Regulatory Relief Measures 

 

The U.S. House approved two bills to help reduce regulatory burden on community banks that would help them to raise capital and lend in their communities. Both were inspired by ICBA's "Plan for Prosperity" reg relief package -- which IBANYS strongly supports and advocated for in meetings with members of the New York Congressional Delegation last week. 

  • H.R. 3329 would increase the qualifying asset threshold of the Small Bank Holding Company Policy Statement from $500 million to $1 billion and would include small savings & loan holding companies. 
  • H.R. 2672 would allow individuals to petition the CFPB to have the rural status of a county reassessed.

 

INDUSTRY INSIGHTS

 

 

 Fed Sees "Solid Growth" Ahead

 

Fed Chair Janet Yellen told a Joint Congressional Committee the economy is "on track for solid growth this quarter," but warned a deterioration in housing or financial markets could alter that scenario. She noted many recent indicators suggest a rebound in spending and production, but that housing remains a risk to the recovery, although the Fed expects the sector to pick up eventually. Chair Yellen, who addressed community banks last week in Washington, also noted: "The (Fed Open Market) Committee anticipates that our balance sheet over time will move down to substantially lower levels than it is now... Whether or not it will ultimately return to pre-crisis levels...or remain somewhat larger is something that we will determine as we gain experience with exit.''

 

 

Mortgage Applications Surging

 

Mortgage loan applications finally rose last week, led by a surge in applications to purchase a home. Total mortgage application volume rose 5.3% week-to-week on a seasonally-adjusted basis, according to the Mortgage Bankers Association. Refinance applications were up 2%, but purchase applications jumped 9% to their highest level since January. However, despite last week's strong increase in the purchase market, volume continues to run 16% behind last year's pace.

 

 

IBANYS Webinars Are. . .
 

 

Designed For Community Bankers!
 
IBANYS' webinars present a wide array of information important to New York community banks' officers, employees and directors. These programs, designed specifically for community bankers, offer the convenience of participating without leaving the bank or office. Our webinars are effective, and cost-effective, and provide real bottom line value and convenience to your bank. That's why the number of community bankers taking part has grown dramatically over the past year. Why not take a look at our webinar calendar below?  We think you'll see why so many of your peers across New York are signing up! 
Insights
This Week's IBANYS Spotlight Shines On
 
 
 . . .The Federal Home Loan Bank of New York

 

The Federal Home Loan Bank of New York (HLB) helps community lenders in New York, New Jersey, Puerto Rico and the U.S. Virgin Islands advance housing and community growth. The HLB is part of the congressionally chartered, nationwide Federal Home Loan Bank System, which was created in 1932 to provide a flexible credit liquidity source for member community lenders engaged in home mortgage and neighborhood lending. The HLB increases the availability of mortgages and home finance to families of all income levels by offering high-value correspondent and cash management services to assist our members in more effectively serving their neighborhoods and meeting their Community Reinvestment Act responsibilities. Jos� R. Gonz�lez was appointed President and CEO of the Federal Home Loan Bank of New York on March 20, 2014. Visit www.fhlbny.com or contact Adam Goldstein, SVP, Head of Sales & Business Development: (212) 441-6700, E-mail: adam.goldstein@fhlbny.com.

DID YOU KNOW. . .

. . .that before the Great Depression, the single-family home mortgage was a very different instrument. Until the 1930s, residential mortgages in the United States  were available only for a short term (typically 5-10 years) and featured "bullet"  payments of principal at term. Unless borrowers could find means to refinance  these loans when they came due, they would have to pay off the outstanding loan  balance. Most loans carried a variable rate of interest.
 
(Source: The American Mortgage in Historical and International Context by Richard K. Green, George Washington University, and Susan M. Wachter, University of Pennsylvania.)

New York community banks play a vital role in our state and local economies. Tell 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 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