Banking and New York State

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					Operation HOPE                                                        Community Preservation
The New York Bankers
Association is proud to be a                                          NYBA and its member banks
long-time partner of                                                  are major stakeholders in the
Operation HOPE, a global                                              Community Preservation
economic empowerment and                                              Corporation (CPC) — a pri-
financial literacy organiza-                                          vate, not-for-profit organiza-
tion. Operation HOPE is a                                             tion dedicated to stabilizing, strengthening , and sustaining
not-for-profit providing a                                            low and mixed income communities. More than 90
range of financial services to individuals and small businesses in    commercial banks and thrift institutions across New York
addition to educating young people across the nation in the           State contribute capital and participate in lending activities of
important of personal money management. Operation HOPE                the CPC. The organization provides construction, rehab and
coordinates the volunteer efforts of thousands of bank employees      refinancing loans for multifamily, investor-owned housing.
all over the country to teach financial literacy in public schools.
NYBA was instrumental in bringing Operation HOPE to New
York, where the organization operates the Harlem HOPE Center
and other worthwhile programs with the significant financial and
volunteer commitment of several NYBA member banks.

Our Members
Adirondack Bank The Adirondack Trust Company Alden State Bank Alliance Bank Amalgamated Bank American Community
Bank Anthos Trust Company, LLC Astoria Federal Savings & Loan Association Ballston Spa National Bank Banco Popular
North America Bank of Akron Bank of America, N.A. The Bank of Castile Bank of Cattaraugus The Bank of Greene
County Bank of Holland Bank of Millbrook The Bank of New York Mellon Bank of Richmondviille Bank of Smithtown Bank
of Utica Berkshire Bank Bessemer Trust Company, N.A The Bridgehampton National Bank Brooklyn Federal Savings Bank-
Brown Brothers Harriman & Company The Canandaigua National Bank & Trust Company Capital Bank & Trust Company
                                                                                                                                          Banking and New York State
  Capital One Bank Carthage Federal Savings & Loan Association Carver Federal Savings Bank Catskill Hudson
Bank Cattaraugus County Bank Cayuga Lake National Bank Central Park Credit Bank CFS Bank Champlain National
Bank Chemung Canal Trust Company Citibank, N.A Citizens Bank of Cape Vincent Citizens National Bank Commerce
Bank Community Bank, N.A. Community Capital Bank Community National Bank Country Bank Cross County Federal Sav-
ings Bank The Delaware National Bank of Delhi Deutsche Bank The Dime Savings Bank of Williamsburgh Emigrant Savings
Bank Empire National Bank Empire State Bank, N.A. Esquire Bank Evans National Bank Evercore Trust Company, N.A.
  Fairport Savings Bank Fiduciary Trust Company International First Citizens National Bank First Federal Savings of Middle-
town The First National Bank of Dryden The First National Bank of Groton The First National Bank of Jeffersonville The First
National Bank of Long Island First National Bank of Scotia First Niagara Bank First State Bank Five-Star Bank Flatbush Sav-
ings & Loan Flushing Savings Bank, FSB Fulton Savings Bank Genesee Regional Bank Glens Falls National Bank & Trust Com-
pany Goldman Sachs Trust Company, N.A. Greater Hudson Bank, N.A. Hamptons State Bank Herald National Bank Highland
Falls Federal Savings & Loan Association HSBC Bank USA Hudson Valley Bank,N.A. Jamestown Savings Bank J.P. Morgan
Chase & Co. KeyBank, N.A.. Lake Shore Bank Lyons National Bank Madison National Bank Mahopac National Bank Maple
City Savings Bank, FSB Market Street Trust Company Maspeth Federal Savings & Loan Association Massena Savings & Loan
Association Medina Savings & Loan Association Morgan Stanley Trust, N.A. M&T Bank National Bank of Coxsackie The Na-
tional Bank of Delaware County The National Union Bank of Kinderhook NBT Bank, N.A. New York Commercial Bank New
York Community Bancorp, Inc. New York Private Bank & Trust NYNB The North Country Savings Bank Northfield
Bank Oneida Savings Bank Orange County Trust Company PathFinder Bank Patriot Federal Bank Pioneer Bank Provident
Bank Putnam Count y National Bank Putnam County Savings Bank Rhinebeck Savings Bank
Richmond County Savings Bank Ridgewood Savings Bank Riverside Bank The Rome Savings Bank Rondout Savings
Bank Roosevelt Savings Bank Roslyn Savings Bank Saratoga National Bank & Trust Company Savannah Bank Savoy
Bank Solvay Bank Sovereign Bank State Bank of Long Island Sterling National Bank Steuben Trust Company The Stissing
National Bank of Pine Plains The Suffolk County National Bank Sunnyside Federal Savings and Loan Association of Irvington TD
Bank Tioga State Bank Tompkins Financial Corporation Ulster Savings Bank United Orient Bank Upstate National Bank USA
Bank Valley National Bank Victory State Bank Wachovia Walden Federal Savings and Loan Association Walden Savings
                                                                                                                                                       New York Bankers Association
Bank Wallkill Valley Federal Savings and Loan AssociationWatertown Savings Bank The Westchester Bank Wilber National
Bank Woodforest Bank
                                                                   Employment                                                                                                                                                Banking in the Community
                                                                                                                                                                 NYS Tax Revenues from Banks

                              A Message from                       The commercial banks and thrift institutions doing business in New
                                                                                                                                                                                                                             In addition to employment and lending, New York’s banks
                                                                   York State are among the largest private employers in the State.                                                                                          and thrifts are major contributors to their communities
                              Michael P. Smith                     Even after the unfortunate loss of a significant number of jobs in               1200000000                                                               through investments in municipal and State obligations,
                                                                   the current recession, the State’s commercial banks and thrifts em-                                                                                       through charitable contributions and released time for their
                                  President & CEO,                 ploy approximately 200,000 New Yorkers. With offices in virtually
                                                                                                                                                                                                                             officers and employees to participate in community leader-
                                  New York Bankers                 every city, town and village, banking is one of the most important                800000000                                                               ship, through providing banking services of all types and,

                                        Association                contributors to the State’s growth. Moreover, jobs in commercial                  600000000                                                               most important in the current troubled economic climate,
                                                                   banks and savings institutions are typically well-paid. Banks em-                                                                                         through their support of financial literacy and credit counsel-
                                                                   ployed approximately 4% of private, non-farm employees in New                     400000000                                                               ing efforts.
                                                                   York State.                                                                       200000000
  One of New York’s banking pioneers, Arthur Roth, once                                                                                                                                                                      Virtually every member of the Association provides some
                                                                                                                                                             0        2005    2006     2007       2008   2009         2010
said “the best way for a bank to build its business up is to       Studies show that for every job in the banking sector, there are 1.5                                                                                      form of financial literacy educational effort and many con-
help build up the community in which it resides.” The same         more jobs generated in related industries, such as legal, accounting,                                               Year                                  tribute to not-for-profit counseling agencies that assist New
holds true today for New York’s banks, whether they are an         marketing, and advertising.                                                                                                                               Yorkers in every phase of the credit and money management
independent community bank serving one community upstate                                                                                                Small Business Owners' Number One Problem Is Not                     process. When last surveyed, the member banks of NYBA
or money-center banks serving the global community.                What We Do                                                                                          Access to Financing                                   contributed more than $200 million annually to charitable and
    Today, banking’s commitment to New York extends well                                                                                                                                                                     civic organizations.
beyond individual neighborhoods. The industry recognizes           Banks and thrifts are among the most important and most reliable
the seriousness of the State’s fiscal situation and will play an   sources of funding for housing, small business lending, consumer
important role in its progress toward a once again robust and      purchases and other types of funding on which New Yorkers have                                                                           F ina ncing      Small Business Lending Initiatives
                                                                                                                                                                                                            W eak Sales
vibrant economy, from Montauk to Buffalo.                          come to rely. As other lenders have pulled back from extending                                                                           T axe s
    For as New York’s bankers have known for more than a           credit in the State, banks have continued to lend. The Federal De-                                                                       Govt. Regs.      Small businesses provide the backbone of our economy, and
century, the banking industry is only as strong as the commu-      posit Insurance Corporation, summarizing statistics on all New                                                                           Other            employ the vast majority of private sector workers. Now, a
nity it serves. Therefore, NYBA is ready to kick-off the 2011      York-based banks and thrifts, shows that total lending increased                                                                                          new partnership between New York's banks and thrifts and
state legislative session with confidence that, together, we       from 2007 to 2008 by more than $10 billion. From 2008 to the end                                                                                          the New York Business Development Corporation (NYBDC)
will meet the challenges facing the Empire State. As we have       of 2009, there was a fall-off of approximately 9% in total lending,                                                                                       has created the "Credit for Success/Second Look" program,
done for 117 years, we are “banking on New York.”                                                                                          Source: NFIB
                                                                   but loans to small businesses – those with a principal value of $1                                                                                        which establishes regional lending pools to provide small
                                                                   million or less – held remarkably steady at $21 billion, although                                Small Business Credit Needs                              businesses in their areas with a "second look" for loan appli-
Who We Are                                                         there was a small decrease in the number of loans made, from                                                                                              cations initially declined and which may be otherwise unable
                                                                   215,000 to 211,000. In fact, with the sponsorship of NYBA and the                                                                                         to qualify for credit. Loan amounts range from $25,000 to a
 Since 1894, the New York Bankers Association has been the         NYBDC, banks have pooled their capital to create a “second look”                                                                                          maximum of $150,000, and may be used for refinance, work-
 State’s preeminent provider of legislative and regulatory ser-    program to allow small business borrowers who were turned down                                                                                            ing capital and equipment purchases with the goals of ex-
 vices to a unified banking industry. Over the years, the As-      for a bank loan to reapply for credit through the New York Busi-                                                                                          panding and creating jobs.
 sociation’s mission has grown to include educational pro-         ness Development Corporation.                                                                                                                Met
 grams, public relations, political action and member services                                                                                                                                                  Unmet        While some industry observers have said that banks and
 geared to enhance the profitability and stature of New            Contributions through Tax Revenue                                                                                                                         thrifts have stopped lending to all but the most solid small
 York’s banking industry. Today, the New York Bankers                                                                                                                                                                        businesses, a January 2011 survey of the National Federation
 Association represents community, regional and money cen-         During the third and fourth quarters of 2008, New York’s banking                                                                                          of Independent Business found that 91% of small businesses
 ter commercial banks and thrift institutions in New York          industry collectively experienced one of the most severe financial                                                                                        either had their credit needs
 State with 200,000 employees and more than $9 trillion in         setbacks in its history. Surprisingly, even as other industry groups                                                                                      satisfied or were not inter-
 aggregate assets. Several years ago, NYBA merged with the         were reducing the amount of taxes paid to New York State, the                                                                                             ested in obtaining a loan.
                                                                                                                                           Source: NFIB
 Community Bankers Association of New York State,                  revenues the State received from the Bank Tax, according to the
 strengthening further the unified voice of New York’s bank-       State Tax Department, actually increased. The Department of
 ing industry.                                                     Taxation and Finance reported that, for the 2009-2010 fiscal year,
                                                                   New York State collected approximately $1.2 billion from banks          Credit Ready NYC
                                                                   and thrifts paying income taxes under Article 32 of the Tax Law.
                                                                   During 2008-2009, the banking industry paid $1.0 billion under Ar-      The New York City version of the Second Look program is a collaboration among NYBA,
                                                                   ticle 32, so that the most recent fiscal year’s Bank Tax collection     NYBDC, The New York City Council, and The New York City Department of Small Business
                                                                   was up 10.5%. The result was even more remarkable in a year             Services. This effort produced a helpful pamphlet, available to small business owners, called
                                                                   when total business tax collections declined 1.1%. In 1985, banks       “Resources for Small Businesses in Need of Credit.” The pamphlet lists contact information for the
                                                                   and thrifts paid 5% of the State’s corporate taxes. Today, banks and    various public and private sector resources for small businesses in search of financing
             New York Bankers Association                          thrifts pay over three times that percentage.                           opportunities. NYBA member banks are proud to be a part of this innovative program to help
           99 Park Avenue, New York, NY 10016                                                                                              companies expand and put New Yorkers back to work.
             19 Dove Street, Albany, NY 12210
                (212) 297-1600 NYC phone
               (518) 434-3557 Albany phone

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