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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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It's Time!
Plan To Attend IBANYS' ANNUAL CONVENTION:
October 3-5, The Turning Stone Resort
By John Witkowski
President & CEO
It's that time of the year again. IBANYS' Annual Convention is October 3-5 at the Turning Stone Resort & Casino in Verona, NY.
The agenda is filled with outstanding speakers and presentations, including two notable keynote speakers: Ray O'Conor (former President of Saratoga National Bank & Trust and a Past IBANYS Chairman),
and veteran political analyst/
commentator/Siena College Pollster Steve Greenberg.
- Ray O'Conor 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 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. Ray will kick off our convention Monday evening, October 3.
- Steve Greenberg will preview the critically important 2016 election for community banks. Every single member of the New York
 State Legislature and New York Congressional Delegation is up for election, and control of the New York State Senate is definitely expected to be hotly contested. A number of key congressional races are also up for grabs, and results could impact the balance of control. Steve will be our closing speaker Wednesday morning, October 5.
In addition to our keynoters, we'll have a full menu of speakers, panel discussions and presentations on the most important issues and trends impacting New York community banks. We have invited a select group of speakers to present a variety of timely and important topics -- from innovative trends in banking such as cashless societies, to the basic "blocking and tackling" of banking such as building a successful ERM.
Of course, along
with the serious business program, we would like to have a little fun as well. You can register to play golf, take a little time and enjoy the spa, do a little shopping and participate in IBANYS' first "Texas Hold'em" poker tournament. We also have a few other surprises that are being planned.
There will be plenty of great food and drink, outstanding opportunities to network with fellow bankers and to learn more about the companies that support our industry throughout the year, and sponsor and support IBANYS and our convention annually.
Last but not least,
our traditional PAC auction is the highlight of our convention -- with all proceeds going to our state political action committee, NYSIBPAC. Every year, we have great auction items and I look forward to having more at the Turning Stone 2016. PLUS, we'll have
our traditional business show, and we're bringing back last year's successful "6-Minute Drills" for preferred providers/associate members.
. . .REGISTER NOW!
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Associate Members, Preferred Providers, Exhibitors
Click Here
We are looking for a great turnout, so register early and book your rooms ASAP.
As always we thank you for your support and let's make this convention the best yet!
Sign Up For These Two Special Webinars:
3Q Economic Outlook Webinar -
"Global Pressures Pushing Fed off Policy Path"
Tuesday, July 19
Speaker:
Craig Dismuke, Chief Economist, Vining Sparks
The Fed continues to struggle to follow their projected rate path after U.S. growth disappointed in the first quarter, job growth slowed dramatically, and global conditions deteriorated. This webinar -- designed for Portfolio Managers, CFOs and CEOs/Presidents - is free of charge and will look at the fallout from the Brexit vote and the likely impact on U.S. fixed income investors.
Most  notably, prolonged uncertainty in the European Union and a global devolution into the abyss of easier and easier monetary policy may well force the Fed even further from their desired path. The webinar will also highlight what appears to be a rebounding U.S. economy despite the slower rate of job growth. The webinar is expected to last approximately 45 minutes. Speaker
Craig Dismuke, Chief Economist for Vining Sparks, is responsible for the projection and publication of Vining Sparks' economic and interest rate forecasts and evaluates economic developments and fixed income sector performance to identify risks and opportunities within the U.S. market. Craig publishes research articles for Vining Sparks and other national publications and speaks often at industry conferences on the health of the U.S. economy, expectations for interest rates, and relevant fixed income strategies. He has appeared on Bloomberg TV, Fox Business and CNBC and is quoted frequently in the financial news. To register, please click on the link below.
https://cc.readytalk.com/registration/#/?meeting=vu61a7zfojvg&campaign=8amtiikbuj18
CSI's Semi-Annual Cybersecurity
Update Webinar --
Thursday, July 21, 2016
1:00 - 2:00 PM
Speaker:
Steve Sanders, Vice President of Internal Audit
I
n this exclusive update, the team of cybersecurity experts from Computer Services, Inc. (CIS) will walk you through the 20 questions the FFIEC wants your board to answer about cybersecurity risks. The FFIEC has questions, and CSI has answers. Get the facts so your board is prepared to answer these questions, and you can know your financial institution is protected from cybersecurity risks.
INDUSTRY INSIGHTS
New York Ranks 29th In CNBC's
"Scorecard on State Economic Climate"
CNBC scores all 50 states on more than 60 measures of competitiveness, developed with input from a broad and diverse array of business and policy experts, official government sources, the
CNBC Global CFO Council
and the states themselves. States receive points based on their rankings in each metric. CNBC then separates those metrics into 10 broad categories, weighted based on how frequently each is used as a selling point in state economic development marketing materials. That way, our study ranks the states based on the criteria they use to sell themselves. Utah topped the list, while Rhode Island ranked last. New York State ranked 29th out of 50, receiving low marks for its high costs but high marks for technology and innovation. However, New York's 29th place ranking is six spots higher than last year's 35th place rating.
Here's a look at New York's grades.
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Category
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Score
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2016 Rank
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2015 Rank
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| Workforce |
194 |
35 |
29 (Tie) |
| Cost of Doing Business |
109 |
44 |
44 (Tie) |
| Infrastructure |
130 |
43 |
39 (Tie) |
| Economy |
237 |
10 |
31 (Tie) |
| Quality of Life |
191 |
22 |
20 (Tie) |
| Technology & Innovation |
194 |
4 |
4 |
| Education |
130 |
8 |
3 (Tie) |
| Business Friendliness |
30 |
45 |
43 |
| Cost of Living |
3 |
49 |
48 |
| Access to Capital |
40 |
11 |
13 |
| Overall |
1258 |
29 |
35 |
Economic Profile
Population: 19,795,791
GDP growth: 1.4 percent
Unemployment rate (May 2016): 4.7%
Top corporate tax rate: 6.5%
Top individual income tax rate: 8.82%
Gasoline tax: 60.72 cents/gallon
Bond rating/outlook: Aa1, stable
Major private employers: Consolidated Edison, JPMorgan Chase
Economic profile sources: U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Federation of Tax Administrators, American Petroleum Institute, Moody's Investor Service, S&P Global Market Intelligence
Financial Industry Job Growth
Employment in the financial sector grew 0.19% in June from the previous month, according to U.S. Labor Department data.
The industry added about
 16,000 jobs last month, after a gain of 14,000 in May
. (The insurance and real estate industries saw the most job growth.)
The financial industry as a whole has added 163,000 jobs so far this year, for a total of 8.2 million employees.
Overall, the U.S. economy added 287,000 in June, compared to a gain of 11,000 in May. The unemployment rate climbed to 4.9%, from 4.7% the previous month.
OCC: Community Banks Performance Positive -- As Overall Industry Faces Risks
The Office of the Comptroller of the Currency (OCC), in its semi-annual risk report, noted community bank return on equity nearly reached pre-recession levels in 2015, while profitability at larger banks remained well below pre-recession  levels. ROE at national banks and thrifts with assets less than $1 billion exceeded 10% on growth in residential and commercial real estate lending. OCC said strategic risk is a concern due to the economic cycle and evolution of the banking system. Credit risk is increasing as banks lend more and ease underwriting standards. Operational risks are up due to cybersecurity threats and increasing reliance on third-party relationships. The OCC is closely monitoring low energy prices, the potential for rising interest rates and marketplace lending partnerships as possible sources of system-wide risk. The OCC supervises more than 1,500 national banks and federal savings associations and about 50 federal branches and agencies of foreign banks in the United States. These institutions comprise nearly two-thirds of the assets of the commercial banking system.
Mortgage Update:
Refinances Surge Another 11%
Last week, l
ower interest rates pushed total mortgage application volume up 7.2% from the previous week, according to the Mortgage Bankers Association. The seasonally adjusted reading  included an adjustment for the Fourth of July holiday.
Refinance applications led the jump, increasing 11% from the previous week to the highest level in three years.
Refinances had surged 21% the previous week, and are up nearly 65% from the same week one year ago when interest rates were higher. The refinance share of mortgage activity increased to 64% of total applications from 61.6% the previous week. Mortgage applications to purchase a home (less rate-sensitive) didn't move at all during the week. The volume was 5 percent lower than the same week one year ago, but last year the holiday fell on the prior week, so that could be skewing the numbers.
GOVERNMENT RELATIONS
Washington, D.C.
GOP's "Dodd-Frank Replacement Bill"
Congress is set to recess at the end of this week until September, .At a hearing yesterday, House Republicans "showed near unanimous enthusiasm" for the "Financial CHOICE Act" -- House Financial Services Committee  Chairman Jeb Hensarling's (R-TX) proposal to replace key elements of the Dodd-Frank Act. Among other things, the
proposal would set out the capital requirements for regulatory relief, and take away the Financial Stability Oversight Council's authority to declare systemically important financial institutions. It would repeal Dodd-Frank's "orderly liquidation authority" process - the mechanism to wind down failing banks - in favor of bankruptcy.
"Morning Consult" reports Committee Republicans appear unified in support of Hensarling's proposal, while Committee
Democrats were equally unified in their opposition. Meanwhile, o
n Thursday, a Financial Services Subcommittee will look into the Financial Stability Oversight Council's designation of systemically important financial institutions. Today, t
he House Oversight and Government Reform Committee is scheduled to look into the application process at the Federal Deposit Insurance Corp.
Meanwhile, according to Politico, The Democratic Party's draft platform includes language backed by Sen. Elizabeth Warren (D-MA) that calls for keeping bankers out of top appointed government positions. Democrats have adopted language seeking "people with a track record of standing up to power" for key administration positions, in a move that strengthens Warren's push to keep Wall Street executives away from high-ranking positions in Washington.
Albany
Cuomo Doesn't Commit To Helping Democrats Capture State Senate In Fall
Gov. Cuomo would not commit yesterday to supporting Democrats' efforts to regain control of the New York State Senate. Democrats currently  have a narrow majority (32-31) in the chamber, but because the five-member-Independent Democrats Caucus and one other Democratic Senator from Brooklyn has conferenced with Republicans, the GOP and IDC have held a governing majority coalition.
Cuomo told the press he's not concerned about state politics at the moment.
"It's too early for any political conversation about that. Right now, we have a Democratic convention coming up for Hillary Clinton and that's what I'm focused on."
Meanwhile, NYC Mayor de Blasio, who came under federal scrutiny for his role in supporting Democratic State Senate campaigns in 2014, is also expected to stay out of the fray.
IBANYS Member Services Programs:
Are
YOU Taking Full Advantage?
IBANYS has introduced
several initiatives
which can
provide real value and bottom line benefits to New York community banks
. Take a moment to review these programs. If you have any questions, contact us, or visit
www.ibanys.net. We hope you'll decide to take full advantage of these exciting opportunities.
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IBANYS and NYBDC have announced a partnership with Excelsior Growth Fund (EGF), a nonprofit Community Development Financial Institution formed by New York Business Development Corporation (NYBDC). EGF is endorsed by IBANYS as the exclusive online lending partner for association
 members.
EGF provides innovative financial solutions and business advisory services to underserved small businesses in New York State through a fast, simple and secure online lending platform. Its core product is the EGF SmartLoan™, which features amounts up to $100,000, approvals within 1-2 days and disbursements within one week. Importantly, interest rates a fraction of those typically offered by online lenders.
EGF offers banks a unique customer retention solution when a customer either does not qualify for a bank's loan offerings, or is seeking the fast,
transparent process available through online lenders. To facilitate retention, EGF shares performance information on the referred loan portfolio on a quarterly basis and offers the opportunity for the bank to purchase referred loans at par at any time.
Additional details on the EGF SmartLoan, including eligibility criteria, are available at:
- 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!
New York Community Bank Officers, Directors & Employees:
Sign Up For IBANYS Webinars!
On a daily basis, New York's community banks must cope with an ever wider array of challenges. Your officers, board members and employees understand that their responsibilities -- and, potential liabilities -- are not about to diminish. Are you doing everything possible to provide the latest information and tools required to help them meet their responsibilities, and properly prepare the bank for the future? Here's one outstanding -- and incredibly easy -- way to do just that: Sign them up for
IBANYS' webinars. Our programs are specifically designed to meet the needs of New York community banks. The webinars are both effective -- and, cost-effective. Your officers, directors and employees can participate directly from the ease and comfort of their offices. Over the past two years, the number of bankers participating in IBANYS webinars has risen significantly. Join
your industry and association peers and take full advantage of these timely webinars.
Review our upcoming programs by clicking the link below:
https://ibanys.fed.financialedinc.com/store/webinar
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ACBB (Atlantic Community Bankers Bank)
Owned and managed by community bankers for community bankers, ACBB has been serving financial institutions since 1983. They provide correspondent services to over 300 shareholder banks in addition to many non-shareholder banks. From their full product and service lineup to banking expertise with a personal touch, they help customers meet the needs of their
 communities. ACBB can satisfy the correspondent needs of community banks of all sizes, including regional financial institutions.
ACBB prides itself on being a community bank partner, not a competitor. In fact their banking charter precludes them from doing business directly with the public. They're proud to say that community banks are their only customers. They
serve community banks in the Mid-Atlantic
and Northeastern regions, offering both credit and non-credit services. Their aggregation capabilities with their business partners provides superior pricing to match their high level of customer service. They specialize in helping community banks remain profitable and competitive. Their
only focus is to help community banks compete more effectively by offering the correspondent products they need, the information they desire, and the personalized service they deserve.
Their intention is to be the most trusted partner for community banks by enabling them to depend on them for their correspondent, telecommunications and compliance training needs. For details, visit the website at www.acbb.com, or contact Brian Good, Correspndent Banking Officer:
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. . .That a significant rise of the United States mortgage market occurred between 1949 and the turn of the 21st century? The mortgage debt to income ratio rose from 20% to 73% during this time. In addition, mortgage debt to household assets ratio rose from 15% to 41%. But the uniqueness of the American mortgage has long roots, back to the revolutionary era when the first legitimate commercial bank was founded in 1781. After World War II, the G.I. Bill created for veterans of that war created the Veterans Administration mortgage insurance program, which provided excellent rates on mortgages for veterans and was designed as part of the total deferred compensation package for service in the armed forces, and to stimulate the housing market. Loan-to-value ratios rose to 95% and the maximum mortgage term was extended to 30 years.
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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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