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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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GOVERNMENT RELATIONS
ALBANY
DFS Issues Final AML Regulations
The State Department of Financial Services (DFS) late last week released its final AML regulations, which the Department initially proposed last winter.
One change of note in the proposed final regulation from the original draft: the requirement that the bank's chief compliance officer sign an official certification of the bank's anti-money laundering compliance was not included. Rather, senior officers or members of the board are required to execute a certification that the bank's protocols meet the requirements of the regulation. Each bank must submit a board resolution on a senior officer's compliance finding by April 15 each year. This issue of certification by the compliance officer was raised by IBANYS in our comments on the regulation.
The proposed final regulation also deletes the criminal penalties for incorrect or false certification, which were included in the draft regulation. IBANYS provided negative comments on criminal liability.
The program design for the purpose of monitoring transactions may be manual or automated and be based on the risk assessment of the institution.
IBANYS did point out in its comments the necessity for retention of manual processing for smaller banks because of the IT system costs, as it appeared that the proposed regulation made manual system non-compliant. IBANYS requested a carve-out which was not provided. The risk assessment of the institution should ensure that an excessive monitoring program is not mandated. The determination as to risk assessment is critical in the application of this regulation.
The regulations are now final, and will take effect next January (2017), and the first compliance findings will be due April 15, 2018.
WASHINGTON, D.C.
Federal Regulators Pledge Call Report Relief
Federal banking regulatory agencies have renewed their call for reforms to the call report this year to provide meaningful regulatory relief for community banks. The most recent indication of progress
 toward a streamlined call report came in a Financial Institution Letter finalizing an initial proposal released in 2015 which deletes certain data and revises reporting thresholds. ICBA and IBANYS have urged call report relief, and support provisions under the "Plan for Prosperity" regulatory relief platform, through the CLEAR Relief Plus Act (S.927) and Community Bank Reporting Relief Act (H.R.4500).
CFPB Proposes Implementing Privacy Notice Law
The Consumer Financial Protection Bureau (CFPB) issued a proposed rule to implement a law, supported by ICBA and IBANYS, eliminating redundant privacy notice requirements. The reform was inspired by ICBA's "Plan for Prosperity" --  which IBANYS strongly endorsed and advocated for in meetings in Washington. It passed as part of 2015's FAST Act highway law, and eliminates a policy that required financial institutions to provide annual privacy notices to customers even when their policies have not changed.
The CFPB proposed to remove a provision that allows an alternative delivery method for annual privacy notices, which will no longer be used in light of the annual notice exception. It also proposed deadlines for institutions that resume delivery of the notices if their practices change.
Meanwhile, the House Ways and Means Committee is scheduled to vote Thursday on a measure that would restrict the ability of the Internal Revenue Services to force businesses to give up funds to the government.
H.R. 5523 (
Roskam, R-Ill), Chairman of the Ways and Means subcommittee on oversight, If implemented, would require the IRS to show probable cause for funds obtained from an illegal origin before seizing cash. It also would give recourse to appeal the seizure by establishing a "post-seizure hearing" process.
The measure is supported by Rep. Joe Crowley (D-Queens), vice chair of the Democratic caucus.
Ways and Means Republicans see the bill as a way to curb IRS abuse of small businesses. The committee held hearings in May on the tax-collecting agency's civil asset forfeiture procedures.
City and State has published a preview of the 2016 election by looking at the U.S. Senate and all the state's Congressional races. To read the article, click on the link below.
IBANYS MEETINGS & CONFERENCES
Last Week's Second Annual IBANYS
Lending Conference A Success!
IBANYS held our Second Annual Lending Conference last week in Fairport, New York just outside of Rochester.
The program reviewed all aspects of the lending process, as presentations and discussions focused on loan review, risk, sales, portfolio management and the impact of CECL.
A record number of participants took part in the
two-day conference, which offered up to 12 CPE credit hours. (CPE certificates have been mailed.) Follow-up feedback was extremely positive. Thanks to T.Gschwender & Associates for co-sponsoring the conference, and thanks to our sponsors -- the Federal Home Loan Bank of New York, ICBA Bancard and TCM Bank, N.A. -- for their support. As always, speaker presentations are posted on our website at www.ibanys.net.
Here are a few scenes from this year's Conference.
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| IBANYS' Second Annual gathering attracted a record number of participants |
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| Elizabeth Williams, CEIS Review |
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| David Ruffin, Credit Risk Management Analytics |
IBANYS' 42ND ANNUAL CONVENTION:
October 3-5,
The
Turning Stone Resort
IBANYS' 42nd Annual Convention will take place at The Turning Stone Resort 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. Steve Greenberg will be our closing keynote speaker Wednesday morning, October 5.
Ray O'Conor will be our opening night Keynote speaker
Monday evening, October 3
. 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 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.
Of course, we'll have a full menu of speakers, panel discussions and presentations on the most important issues and trends impacting New York community banks:
- Bank cybersecurity from a Senior Management Perspective
- Liquidity Strategies
- Merger & Acquisition Update
- Implementing A Successful ERM Process
- Mobile Wallets
- Optimizing Your Branch Delivery System
- . . .and so much more!
. . .PLUS,
our traditional business show, silent PAC auction, 6-Minute Drills for preferred providers/associate members and much more!
Watch for program details and sponsorship opportunities.
INDUSTRY INSIGHTS
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
Don't Miss CSI's Next Complimentary Semi-Annual Cybersecurity Update Webinar
Thursday, July 21, 2016
1:00 - 2:00 PM
Speaker:
Steve Sanders, Vice President of Internal Audit
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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.
Spending, Personal Income, Wages &
Salaries All Up
U.S. consumer spending rose for a second straight month in May on increased demand for autos and other goods.
The U.S. Commerce Department said  on Wednesday consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.4% last month, pointing to an acceleration in economic growth in the second quarter.
Consumer spending in April was revised up to show it advancing 1.1% instead of the previously reported 1.0% jump. Personal income rose 0.2% after advancing 0.5% in April. Wages and salaries gained 0.2%. Savings slipped to $730.6 billion last month from $753.7 billion in April.
Total Mortgage Volume Surges, Led By Re-Fis
Total mortgage application volume surged 14% for the week ending July 1 from the previous week, according to the Mortgage Bankers Association. The measure is seasonally adjusted. Application volume is now up 66% from one year ago.
Applications to  refinance home loans jumped 21% for the week, and are now 113.5% higher compared to one year ago, when rates were about three quarters of a percentage point higher. A drop in rates for larger, so-called "jumbo" loans is leading the refi run, and some of these refinances are cash-out, as borrowers take advantage of higher home values. There was also a small boost in mortgage applications to purchase a home, although they are far less sensitive to weekly rate moves. Purchase volume rose 4% for the week and was up 23% over the same week one year ago.
Boutique Investment Banks Impacting Wall Street
Boutique banks are taking a bigger bite out of Wall Street's top line this year.
Boutique investment banks took 17% of United States M&A revenue in the first half of 2016, according to data kept by financial services analysis firm Dialogic.
That's a slight increase over where it stood at this time last year, when Dealogic reported boutique's M&A disruption at 16% of the market. It was once as high as 18%, and analysts noted smaller banks could be on track for a banner year on Wall Street if they pick up their pace even just a little bit. The smaller banks' share of deal revenue is way up over a longer time-frame. In 2008, boutiques had a mere 8% wallet share.
IBANYS Member Services Programs:
Are YOU Taking 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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EscapeWire Solutions, a managed IT Solutions service provider, has been servicing clients across multiple industries for over 13 years. They have built their reputation on trust, expertise and dedicated customer service. EscapeWire works closely with each client to assure they have a program to meet their IT needs -- from digital security and managed service plans, to cloud computing and cloud communication. Because they specialize in small to medium-sized businesses, they know what it takes to keep your company running smoothly. They'll manage your technology for you, so that so that you can focus on what's important to you.
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That July 4, 1776 wasn't the day that the Continental Congress decided to declare independence? They did that
July 2, 1776. It also was not
the date it was signed; that was August 2, 1776.
It wasn't the day we started the American Revolution--that happened in April 1775. It was not
the day Thomas Jefferson wrote the first draft of the Declaration of Independence: That was in June 1776. It also was not the date on which the Declaration was delivered to Great Britain; that didn't happen until November 1776.
So . . .what did happen on July 4, 1776?
The Continental Congress approved the final wording of the Declaration of Independence, after the draft was submitted on July 2. So,
July 4, 1776, became the date that was included on the Declaration of Independence, and the fancy handwritten copy that was signed in August and is displayed at the National Archives in Washington, D.C. It's also the date that was printed on the Dunlap Broadsides, the original printed copies of the Declaration that were circulated throughout the new nation. In 1870, nearly a century after the Declaration was written, Congress first declared July 4 to be a national holiday, as part of a bill to officially recognize several holidays, including Christmas.
We hope you all enjoyed a safe and happy 2016 Independence Day celebrating America's 240th birthday!
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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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