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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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REGISTER FOR IBANYS' ANNUAL CONVENTION:
October 3-5, The Turning Stone Resort
New York community bankers, IBANYS preferred providers, associate members, sponsors and exhibitors: Don't miss IBANYS' Annual Convention is October 3-5 at the Turning Stone Resort & Casino in Verona, NY.
The agenda is filled with unique networking opportunities, outstanding speakers and presentations, including three notable keynote speakers:
- Ray O'Conor (former President of Saratoga National Bank & Trust and a Past IBANYS Chairman)
- Steve Greenberg, veteran New York State politics analyst/ commentator/Siena College Pollster
- R. Scott Heitkamp, Chairman-elect of the Independent Community Bankers of America® (ICBA),and President and CEO of ValueBank Texas in Corpus Christi, Texas, and has served ICBA and the community banking industry for decades. He is a member of the Executive Committee and board of directors. He is also a previous chairman (and current member) of the Independent Bankers Association of Texas.
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, Oct. 3.
R. Scott Heitkamp is the Chairman-Elect of the Independent Community Bankers of America (ICBA),  the only national trade association that exclusively represents community banks. Scott will bring the ICBA perspective on community banking, and an update on the Washington, D.C. legislative, regulatory scene and the value of ICBA membership.
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, Oct. 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. Check out the links below for all the details!
Of course, along
with the serious business program, we would like you 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.
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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!
Monthly Cyber Security Tips Newsletter
The July Cyber Security Tips Newsletter "Going for Gold in Cybersecurity" newsletter from the NYS Office of Information Technology Services  Enterprise Information Security Office (NYS ITS EISO)
is now available. The monthly newsletter, developed by the Multi-State Information Sharing and Analysis Center (MS-ISAC), provides helpful cyber security tips.
The newsletter is available on the ITS EISO website:
http://its.ny.gov/eiso/awareness-training-events/news
.
The information is intended to increase the security awareness of an organization's end users and to help them behave in a more secure manner within their work environment.
Organizations have permission and are encouraged to brand and redistribute this newsletter in whole for educational, non-commercial purposes.
INDUSTRY INSIGHTS
IBANYS Wants Your
New Leader Nominations
The Independent Bankers Association of New York State wants to recognize
community bankers from across the Empire State who stand out in the
industry and are making significant contributions to their institutions.
The New Leaders in Banking Awards
are right around the corner, and IBANYS has partnered with The Warren Group (our partner in publishing our quarterly magazine, Banking New York)
to identify the very best in our industry.
But we can't do it without your help.
We need your nominations to ensure that we recognize exceptional members of
the local community banking industry. New Leaders in Banking nominations
are now open, and anyone can participate. Whether you want to nominate a
peer, boss or employee, this is an excellent opportunity to recognize an
outstanding industry colleague with the added benefit of gaining positive exposure
in the community through future press and news coverage.
Nominees must be a
New York community bank employee, b
e age 45 or under at any time in 2016, d
emonstrate the qualities of an outstanding employee, manager, or
business leader, and m
ake a notable impact on their bank and community. We look forward to receiving your submission. The Banking New York Conference will take place September 14 in Albany, where key industry players from across the State will gather to discuss the newest developments in banking.
Or, click on the link below:
www.thewarrengroupevents.com
Why So Few De Novo Banks In Recent Years?
The U.S. House Committee on Oversight and Government Reform recently held a
hearing
about the FDIC application process for de novo
(new) banks. The purpose was to
examine why there have been so few new banks of late: the slow economy and low interest rates, regulations or something else that has discouraged new applicants?
A recent Federal Reserve Bank of Richmond
study
showed, the number of new banks has declined significantly since 2009, coinciding with the end of the crisis and the FDIC's prolonging of the de novo period, (during which new banks must adhere to their capital plans) from three to seven years. Another study by Federal Reserve Board economists found that non-regulatory economic factors (e.g., low interest rates and other measures of economic activity that drive down profitability) explained at least 75 percent of the decline in new banks.
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In the last five years, only 10 new banks have weathered the regulatory approval process to be able to open their doors, according to the Federal Deposit Insurance Corporation. By contrast, in the 7 years before the financial crisis, 1200 new banks received their charters. No one disputes the numbers. In the last 5 years, exactly 10 new banks have weathered the regulatory approval process to be able to open their doors, according to the Federal Deposit Insurance Corporation. By contrast, in the 7 years before the financial crisis, 1200 new banks received their charters.
No one disputes, either, that new banks are a good thing. When banks consolidate, as they have in recent years, gaps emerge in the services offered to smaller, mostly local businesses, and new banks have typically popped up to fill them.
And, no one disputes the core reason for why investors aren't hustling to create new banks: They are simply not as profitable as they used to be. Since the 2008 crisis that saw many banks fail, profit margins in lending - the difference between what a bank pays depositors and what it collects from borrowers - has declined up to 25 percent, according to the FDIC.
"That is not a get-rich-quick scheme," said Karen Shaw Petrou, managing partner at Federal Financial Analytics, and a former regulator. "So attracting investors is hard."
For all the agreement, though, the impact of the newly muscular regulators who emerged after Congress passed the Dodd-Frank Act in 2010 has become a point of contention. Whereas economists tend to see macroeconomic explanations for why so few banks - known in the trade as "de novos" - have been created, banks blame the thicket of regulation that came in response to the worst financial crisis since the Great Depression.
Small Banks Essential
Regulators used to shrug off the lack of new banks - "This too shall pass," they often said - attributing it to the most recent recession. Now the question is getting a harder look, in part because it's essentially a Main Street question, having little to do with Wall Street.
Smaller community banks make 8 percent of all loans, but about 40 percent of small business loans.
"They fill a niche that big banks don't care about," said Stephen Klein, a partner with the law firm Miller Nash in Seattle, who has helped set up dozens of banks.
Whoever wins the White House, regulatory relief for smaller banks in particular will be a priority of Republicans in Congress, and even many Democrats. Sen. Richard Shelby, the Alabama Republican who chairs the Senate Banking Committee, sought bipartisan compromise on the issue last year.
The effort collapsed when Democrats refused to include changes backed by Shelby that stood to benefit mainly regional banks like U.S. Bank, Fifth Third or Regions Financial. But the premise that easing some rules was warranted for smaller, community banks got a sympathetic hearing from most Democrats, including Sen. Sherrod Brown, the Ohio Democrat who is the ranking member on Shelby's panel.
Even so, it's easy for some of them to point to absolute numbers in arguing that banks really don't have much to complain about.
In 2015, FDIC-insured banks earned nearly $164 billion, a record. Only 8 banks failed in 2015, the lowest number since 2007, before the onset of the crisis. And the number of banks on the FDIC's watch list declined to 165, also the lowest since before the 2008 crisis..."
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The
Consumer Confidence Index hit 97.3 in July, according to The Conference Board. Economists expected consumer confidence to fall to 95.8 in July, according to a Thomson Reuters consensus estimate. (
June's  consumer confidence reading was revised down, to 97.4 from 98.)
The survey is a closely followed barometer of consumer attitudes, as it measures sentiment toward business conditions, short-term outlook, personal finances and jobs. Consumers were split on current economic conditions for July. A larger share of consumers (28.1% compared to last month's 26.8% ) said business conditions were good. The percentage of those who said conditions were bad also increased slightly, to 19% from last month's 18.3%. About 16.6% expect their incomes to increase, down from 18.2% last month. Only 10.8% expect a decline in their income, down from 11.3%.
- New U.S. single-family home sales rose more than expected in June, reaching their highest level in nearly 8-1/2 years, the latest sign that the housing market was gathering momentum. However, sales fell 5.6% in the Northeast. The U.S. Commerce Department yesterday reported that new home sales
 increased 3.5% to a seasonally adjusted annual rate of 592,000 units in June, the highest level since February 2008, and that May's sales pace was revised up to 572,000 units from the previously reported 551,000 units. Economists polled by Reuters had forecast new home sales, which account for about 9.6% of the housing market, rising to a rate of 560,000 units last month. Sales were up 25.4% from a year ago. Last month's increase left new home sales in the second quarter well above their average for the first three months of the year.
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The S&P CoreLogic Case-Shiller 20-City Composite index rose 5.2% year over year, versus expectations for a reading of 5.7%. It marked a sequential slowdown from
April's 5.4% increase
. H
ome-price appreciation continues throughout much of the United States. David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, noted:
"Overall, housing is doing quite well. In addition to strong prices, sales of existing homes reached the highest monthly level since 2007 as construction of new homes showed continuing gains." However,
Blitzer identified a change of fortunes for some metro areas:
"...When home prices began to recover, New York and Washington saw steady price growth; now both are among the weakest areas in the country."
GOVERNMENT RELATIONS
The New York State Legislature is adjourned until the new session begins in January, 2017, and Congress stands in recess until September. Nevertheless, federal and state activities still occur that impact community banks.
Washington, D.C.
Despite Increased Reg Burden,
Community Banks Boost Mortgage Servicing
Community banks have increased their share of the mortgage-servicing market amid increasing regulatory burdens, the Government Accountability Office reported this week. The study found that the share of mortgages serviced by community banks doubled from 3.4 percent to about 6.8 percent since the first quarter of 2008, based on call report data. However, the GAO acknowledges that many of the lenders it interviewed said they face increased costs due to the CFPB's mortgage origination and servicing rules. For instance, community lenders said the rules have required them to increase staff, update their data systems, or hire third parties to assist with compliance. Further, some lenders said they have had to raise fees and interest rates and kill off product offerings, such as home equity lines of credit and bridge loans.
Community banks nevertheless continue servicing mortgages to generate revenue and maintain relationships with customers, the GAO said. Community banks and credit unions have increased their combined share of the mortgage-servicing market to roughly 13% so
me $3.1 billion in mortgage-servicing rights-while large banks continue to service more than half of the market. In interviews with the GAO as part of the study, ICBA staff discussed the collective impact of the CFPB's mortgage rules and the Basel III Capital rules, which have increased the compliance costs of originat
ing and servicing rules, particularly for the smallest community banks.
CFPB's Debt Collection Plan
The American Banker
reports that the Consumer Financial Protection Bureau (CFPB) plans to unveil new details tomorrow on how it plans to "rein in" debt collection practices, which would force banks to comply with new federal restrictions for the first time.
An outline of the plan, to be released at a public field hearing in Sacramento, Calif., is expected to address widespread problems in the $13.7 billion debt collection industry.
Albany
Governor Cuomo recently signed several bills of interest to community banks that were passed during the 2016 legislative session into law.
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A9171A
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Relates to NY ABLE account ownership, contributions and distributions; repealer
Same as S 8101 CARLUCCI
Last Act: 07/21/16 signed chap.120
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S7922
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Extends the effectiveness of the state charter advisory board
Same as A 10427 Robinson
Last Act: 07/21/16 SIGNED CHAP.228
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IBANYS Supported with Letter
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Pri: 01
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S8141
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Relates to establishing the New York state community restoration fund
Same as A 10730 RULES COM Weinstein
Last Act: 06/23/16 SIGNED CHAP.72
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S8159
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Makes amendments to certain provisions of the 2016--2017 state budget
Same as A 10741 RULES COM Farrell
Last Act: 06/23/16 SIGNED CHAP.73
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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. Is YOUR community bank providing the information and tools required to help them meet their responsibilities, and properly prepare the bank for the future? Here's an outstanding -- and convenient -- way to do so. Sign them up for
IBANYS' webinars, designed to meet the needs of New York community banks. The webinars are 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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BBN
With a new brand, a growing suite of new products and services and an ever expanding list of new clients, BBN continues to build on its legacy as they stride toward the future based on anticipating client needs. BBN is
an organization with a mission to be a partner, never a competitor. Their success is closely tied to the success of their clients. As a  result, they join you in welcoming the opportunities and challenges that lie ahead.
The driving force behind BBN has always been the delivery of high quality and competitively-priced solutions to community financial institutions, and that focus will never change. As they continue to evolve, they will be going to great lengths to reinforce their industry expertise by offering leading edge products, services and technology - all with unparalleled client service. BBN's
98% client retention rate is a testament to its success as both partner and valued resource. This incredible benchmark is also the foundation to their future. As such, they look forward to working with current clients and soon-to-be clients, ensuring that all are empowered to compete and thrive.
To learn more, call 860-657-2265
or, visit the
website: www.bbnfirst.com
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. . .That before the economic crisis hit in the fall of 2008, the number of de novo banks created each year was plentiful. Between 2000 and 2008, here's how many were created:
2000 - 180
2001 - 120
2002 - 88
2003 - 104
2004 - 115
2005 - 160
2006 - 176
2007 - 162
2008 - 86
Dodd-Frank was enacted in 2010. There have been a total of 10 de novo banks formed in the past five 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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