February 4, 2010 Vol. 5, No. 1 

NYBA’S WINTER/SPRING CALENDAR OFFERS OPPORTUNITIES FOR SERVICE MEMBERS    

REGISTER NOW TO EXHIBIT & SPONSOR AT NYBA’S 7^TH ANNUAL TECHNOLOGY, COMPLIANCE & RISK MANAGEMENT FORUM

Don’t miss NYBA's Annual Technology, Compliance & Risk Management Forum May 17-19, 2010 at the Crowne Plaza Hotel in Albany , New York . The Forum offers IT, risk, information security, compliance, operations, audit and fraud management professionals the very latest on industry trends, best practices, regulatory developments and state-of-the-art technology. The program provides cost-effective and time-efficient face-to-face buyer contact during meals, receptions and breaks. Opportunities to network with more than 80 decision makers from over 40 New York financial institutions. Sponsorships are available!  Raise your firm's profile by sponsoring an event at the 2010 Forum. Available sponsorships range from $1000 - $5000. Click here for registration forms and more detailed information.  For further information, contact Elisa Legg (Elegg@nyba.com) or Mary K. Robb (Mrobb@nyba.com).

SAVE THE DATES & PARTICIPATE IN THESE NYBA 2010 EVENTS:

NYBA offers a wide range of quality networking opportunities for firms wishing to connect with the leaders and decision-makers of New York 's banking industry.

Human Resources Management Conference (May 2010); Senior Management Conference (June 2010); Retail & Small Business Banking Conference (September 22-24 - Crowne Plaza , Albany ); 64th Annual Trust & Investment Conference (October 5-7 - DoubleTree Hotel, Tarrytown); Financial Services Forum (November 8-10 – New York City . For further information, contact Elisa Legg (Elegg@nyba.com) or Mary K. Robb (Mrobb@nyba.com).

Latest From Profit Solutions 

NYBA’S WORKERS COMP GROUP INVITES SERVICE MEMBERS TO COMPARE COVERAGE

Arthur J. Gallagher Risk Management Services, administrators of the NYBA Workers Compensation Safety Group, now has an additional Safety Group Available to NYBA Service Members! In addition to attractive cost benefits, the Safety Group makes it much easier for the HR professionals at participating clients to keep track of claims and the status of injured employees. The NYBA plans provide all participants with state-of-the-art on-line claims tracking and monthly reports. The Workers Compensation coverage available to NYBA Service Members offers significant up-front discounts off state mandated rates and the potential for dividends, depending on group experience. For more information on this valuable program, and receive a non-binding quote to compare your current coverage, please call Lynn Cagnetta of Arthur J. Gallagher Risk Management Services at (203) 351-8607 [e-mail lynn-cagnetta @ajg.com]. Be sure to identify yourself as a NYBA Service Member.

XEROX OFFICE EQUIPMENT PROGRAM

Negotiate Your Best Deal – Then Take Off More 

NYBA’s office equipment program provides NYBA Members and Service Members with additional discounts on purchased Xerox equipment. If you buy Xerox equipment, negotiate your best deal with the merchant, then receive a discount above and beyond what the dealer provides. The discount applies to equipment, supplies, training and systems management. Call (800) 275-9376, ext. 2265, and reference contract number 0706438 to qualify for the NYBA discount. For further information on this NYBSCO product, please contact NYBA’s Field Marketing Manager Gus Kananis at (518) 434-3556: e-mail gkananis@nyba.com.

NYBA’s 401(k) PROGRAM - AN ATTRACTIVE OPTION FOR SERVICE MEMBERS 

NYBSCO and Milliman, Inc., a leading provider of retirement plan services, have teamed up to offer an attractive, affordable and reliable 401k program for NYBA Member Banks and Service Members. The plan includes access to a state-of-the-art, web-enabled system and best-in-class investment options. Each participating organization can choose its own plan provisions and investment options that include mutual funds, institutional share class funds, company stock and model portfolios. Participants can select from a menu of investment options developed by Milliman investment consultants, who continually monitor and analyze investments. For more information on this exciting program, please contact Randy Broscious of Milliman at (518) 514-7100, or email him at: randall.broscious@milliman.com. 

E-MAIL ENCRYPTION IS CRITICAL

New York Bankers Service Corporation-endorsed ZixCorp addresses email security with a comprehensive suite of services that include an email assessment program, a manual desktop encryption function for individual users and a corporate-wide solution for automatic content scanning and encryption. The enterprise-wide ZixVPM (Virtual Private Messenger) monitors all company outbound email and automatically determines whether information should be encrypted based on policies set by the organization and built-in, pre-configured lexicon. The lexicon detects and encrypts email that contains nonpublic information, including Social Security numbers, credit card numbers, personal financial details and other confidential information. NYBSCO has negotiated special terms for NYBA Members and Service Members. To learn how ZixCorp can help secure your organization’s confidential email, contact ZixCorp’s Steve Irons at (781) 993-6023; email sirons@zixcorp.com - be sure to identify yourself as a NYBA Service Member to qualify for your discount. 

CSSI HELPS LEVERAGE TAX FLOW TO KEEP CAPITAL WORKING FOR YOU   

NYBA’s New York Bankers Service Corporation (NYBSCO) has endorsed Cost Segregation Services, Incorporated (CSSI) for Engineered Cost Segregation that helps owners of commercial property leverage tax cash-flow, keeping your working capital “working” for you! As an independent, qualified, fully compliant engineering firm that solely concentrates on engineered cost segregation studies CSSI is able to work with you and your accounting firm in applying their methodology and economic results. CSSI will provide a no cost analysis that will prove the economic feasibility of an engineered cost segregation study. Engineered Cost segregation is an IRS approved method that enables commercial property owners to re-classify approximately 30% - 40% of their buildings from real property to personal property. Real property is typically depreciated over a 39 year schedule; whereas personal property can be depreciated in 5, 7 or 15 years, thus generating tremendous cash flow.  Please contact Joe DeSanzo at 908.684.3244 or jdesanzo@cssi-associate.com to discuss CSSI’s no cost no obligation analysis on your branch network.  

Professional Development   

ONLINE COURSES PROVIDE HIGH QUALITY EDUCATION WITH ONLINE CONVENIENCE – Help your employees build their banking knowledge

How well do your employees understand the business of banking?  AIB courses, offered in both instructor-led and self-paced online formats, offer you a cost-effective, time-efficient way to provide training for employees new to the banking industry.  The AIB Service Provider Certificate provides a foundation in banking knowledge, including key terminology, concepts and an overview of the regulatory environment.   AIB Online courses go more in depth on such topics as Commercial Lending, Mortgage Lending, Analyzing Bank Performance, Analyzing Financial Statements, Trust Basics, and more.   

Trying to keep a lid on travel costs?  Use NYBA webinars, telebriefings and the GSB Online Classroom to bring essential updates and nationally known instructors right to your office. Take advantage of these  Webinars, Telebriefings and GSB Online Seminars .  

For information on all NYBA educational programs, visit nyba.com or contact Elisa Legg (elegg@nyba.com, 212-297-1679).   

Remember: You can sign up for automatic updates on all of NYBA’s educational programs via e-mail at: www.nyba.com/ education.

Government Relations Update 

  ALBANY    

On January 19, Governor Paterson released this year's Executive Budget, including a very objectionable provision that would authorize credit unions to accept municipal deposits.  Unlike previous efforts, defeating this proposal will be a most difficult challenge since the Legislature has to take the credit union authorization out of the Budget, with the consent of the Governor.  The Budget deadline is April 1.  

NYBA is also preparing a grassroots and public relations campaign against the credit union legislation. Press calls to NYBA on the issue have already begun.  It appears that the provision would apply solely to local government deposits and relies on the arguments that credit unions would pay higher rates of interest on these deposits and that they would reinvest a larger percentage of these deposits in local loans. NYBA will strongly refute these assumptions and assert our position that non-taxpaying entities should not receive the benefit and support of government deposits.  

Among a number of positive developments, the Budget contains no increase in bank taxes, and would authorize savings banks and savings and loan associations to accept municipal deposits, also without restriction.   

The Budget would also extend the bank tax and Gramm-Leach-Bliley transitional provisions for one year, allowing discussions with the Tax Department on a possible merger of the bank tax with the general corporation tax to continue.  It would eliminate the ability of New York resident trusts to escape taxation by changing from a resident to a non-resident trustee, piggy-back on the federal credit card matching program for sales tax receipts, in place of the sale tax data match program proposed last year, expand the mortgage recording tax to include sales of cooperatives, amend the student loan program enacted last year, expand the low income housing tax credit, make technical corrections to the Empire Zones changes made last year, and establish a new small business revolving loan fund.  Importantly, it would address the expiration of the federal estate tax by maintaining the New York Estate Tax unified credit amount currently allowed independent of the federal law in effect on the date of death.   

WASHINGTON     

NYBA joined with the ABA and other state bankers associations in filing a letter with all members of the United States Senate in strong opposition to legislation that would double (from 12.5% of assets to 25%) the amount of authorized business lending by federally insured credit unions and exclude from the definition of business loans all loans under $250,000.  The letter pointed out that few credit unions are approaching the cap, that the number of credit unions making business loans is shrinking, that credit unions do a poorer job of serving low- to moderate-income consumers than do banks and thrifts, and that the existence of the tax subsidy provides them with an unfair competitive advantage.  The letter responds to the introduction of S. 2919 last month and is parallel to a letter filed by the Association and others in opposition to a companion House bill (H.R. 3380).

NEWS & TRENDS  

Senator Schumer plans to strengthen the state's economy by taking Ulster County 's "Credit for Success" small business lending program statewide. A consortium of banks provides a second chance to small businesses whose initial applications may have been denied due to "risky financial atmosphere" by spreading the risk. Catskill Hudson Bank, Empire State Bank, Provident Bank, Rondout Savings Bank, Sawyer Savings Bank, TD Bank, Ulster Savings Bank, Walden Savings Bank, the New York Business Development Corp. and Ulster County Development Corp. are members of the consortium. NYBA President & CEO Mike Smith , Ulster County Executive Mike Hein, and NYBDC President Pat MacKrell participated in the announcement.    

“First Look” is published by the New York Bankers Association. Please send questions, comments or submissions to Stephen W. Rice, srice@nyba.com, Fax 518-434-1576, or call 518-434-3557. We are sending you this e-mail for your information. If you prefer not to receive any further messages from us, you may unsubscribe to “First Look” by contacting  Steve Rice at 518-434-3557 or srice@nyba.com. Thank you.