Latest News From IBANYS - Keeping you informed

September 23, 2020

IBANYS Weekly E-Newsletter

Visit our website at www.ibanys.net to review all our daily updates on COVID-19 beginning on March 16.

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The President's Message:

IBANYS News and Updates

By John Witkowski, President & CEO

This year, we have all had to adapt and change. One way that IBANYS is adapting to the "new normal" is by moving our Annual Convention to a “Virtual” format. The IBANYS 2020 Annual Convention -- “VIRTUALLY Un-Conventional” -- will take place Wednesday, September 30 – Friday, October 2 – just one week from today!

VIRTUALLY Un-Conventional” – I think it describes 2020 very well!! I also believe these five reasons why you should register today for this event – our signature meeting of the IBANYS year.

TOP 5 REASONS YOU SHOULD REGISTER TODAY FOR THIS EVENT:

ONE REGISTRATION FEE PER BANK – OPEN TO ALL TEAM MEMBERS
Great speakers with an opportunity to learn from subject matter experts.
Opportunity to have your team be part of an IBANYS “Un-Conventional “ Convention - AND SUPPORT INDEPENDENT BANKERS ASSOCIATION OF NYS!!
ALL TEAM MEMBERS receive CPE credit !
KEY NOTE SPEAKER: Political Pollster Steve Greenberg – providing information and details about the upcoming elections

Click here to for detailed brochure and registration form! Please register as soon as possible!

Each week in the newsletter we have highlighted our speakers and shared their topic. Once again this week, we have highlighted a few of the speakers and topics they will speak to.

Also, we would be remiss if we did not thank our sponsors of this event and their continued support of IBANYS and all community banks. Please take a moment to click on the sponsor information below to see how each of the companies help community banks.

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In news from our state and national capitals, Governor Cuomo has signed an executive order that extends the moratorium on eviction of commercial tenant & foreclosure of commercial mortgage until 10/20/20. moratorium on eviction. Congress and the White House still are not close to an agreement on another coronavirus relief & recovery package, but did agree to fund the federal government -- at least until December 11. All this and much more in today's newsletter.

IBANYS VIRTUAL CONVENTION

September 30 - October 1-2, 2020

Meet the Speakers

Robert Fisher, ICBA Chairman-Elect- President & CEO, Tioga State Bank read bio here

Wednesday, Sept. 30 - Morning Keynote Speaker - ICBA Update

Steve Greenberg, Principal & Founder, Greenberg Public Relations read bio here

Wednesday, Sept. 30 - Afternoon Keynote Speaker - Siena Polls/Election 2020

Tim Klatt, Director of Retail Strategies, LaMacchia Group - read bio here

David Welsh, Vice President of Business Development, LaMacchia Group read bio here

Stop the Rollercoaster: How to Invest in Digital AND Branch Experiences to Appeal to Multiple Generations

Contrary to much of the media coverage and hype, you do not need to choose between your channels, picking one and forsaking the rest. During this presentation, La Macchia Group will discuss how data can empower each of your channels for success and how branding can unite them for a seamless customer experience.

José R. González, President & CEO - Federal Home Loan Bank of NY read bio here

A Stable Partner and a Strong Culture

This session will discuss the FHLBNY’s efforts throughout the pandemic to support its members, its employees and the communities we all serve.

Patrick MacKrell, President, Pursuit read bio here

Trends in Small Business Lending

The COVID-19 crisis has dramatically shifted the small business lending landscape. Small businesses, and in particular the very small, are not seeking the same types of products and services that they have in the past. In this session, attendees will gain insight on current trends in small business lending, and learn about alternative loan products that can help businesses succeed when bank financing is not an option.

Our Convention Sponsors - Thank you!

Click each company to learn how they can help your bank.

Barrett School of Banking

Federal Home Loan Bank of NY

Preferred Partner

Pentegra Retirement Services

COCC

WEBINARS

IBANYS Webinars

Are you participating in IBANYS webinars? Now is the time! IBANYS webinars provide timely, important information on subjects of interest to New York community bankers including human resources, business development, investment, compliance and security and much more. They are valuable not only for their content, but for their convenience and low-cost. Take part from the comfort and privacy of your office, without leaving the bank.

Click for full list of webinars

Subscription Tokens

The More You Buy, The More You Save

How does it work:

Tokens can be used to purchase live or recorded webinars anytime, with no expiration! Tokens for both live and recorded webinars are available for an additional fee. (What’s the difference? Click here for the full description.)

Once you have your Subscription Token code, you can immediately register for webinars by using the code at checkout! (Subscription tokens not applicable for full series registrations, or other specials.)

IBANYS Preferred Partners & Associate Members

The ICBA Federal Delegate Board (FDB) election process began this week when nominating petition letters were emailed to all ICBA member banks in New York. To qualify to become a delegate, nominees must be Executive Officers (as defined by Reg O) of a financial institution that has been a paid active ICBA member bank for at least 3 years and must have been active with ICBA or the state association by previously serving on a committee, council or task force. Bankers can nominate themselves and will need three ICBA member bankers to support his or her candidacy for their petition to be considered valid and complete. IBANYS Chairman, Michael Wimer, is finishing up the final year of his second three-year term and cannot run again. We thank Mike for his outstanding service on behalf of New York community banks.

Election Process and Schedule

September 1 - Election process begins when self-nominating forms for state delegate on the Federal Delegate Board are sent to ICBA member banks in the state.
September 21 – Completed nomination forms must be returned by candidates along with the signatures of three ICBA member bankers supporting the candidacy.
October 1 - Election ballots are sent to member banks. (In the event that only one name is submitted, they will automatically become the new state delegate and no ballot will be necessary.)
October 15 – Votes must be received by ICBA

Moderating Loss Cycle?

Bank stock valuations and performance remain trapped in a sea of uncertainties, including the pandemic itself, oppressive interest rates, the election and potential credit losses. The interest rate outlook is unlikely to change. Election results – delayed or not – will be resolved in the short term. The pandemic will remain an uncertainty for the economy. To some extent all of these factors are reflected in the stocks. But the risk of a super-sized loss cycle is receding based on a “channel check” of bank CEOs, rapidly declining deferrals and some economic green shoots.

Read Article here

Intellicredit Portal Portfolio Analyzer

Create your own credit risk profile script! Qwickrates new and stand alone addition to their product set. It is a natuaral extension of QwickAnalytics but focused on banks non-public data. To learn more click the link or contact David Ruffin or Dan Clancy at 800-285-8626.

IntelliCredit Overview

Albany Update

With Election Day now just under six weeks off, the Legislature is very much in campaign mode. While analysts do not anticipate a change in control in either chamber, where Democrats hold comfortable majorities in each, all seats in the New York State Senate and Assembly are on the ballot. No fall legislative session has been scheduled as yet, although there still could be one -- perhaps as a "lame duck" session after the election. The State budget deficit and financial issues would likely dominate the agenda -- including finding additional revenue from taxes and/or spending cuts -- but there has been discussion of other items as well.

Among the revenue-raisers being discussed by state lawmakers are eliminating the rebates the state currently provides on stock transfers; enacting higher income taxes on those with more than $1 million in annual income, and creating a new tax on super wealthy people with more than $1 billion in assets. Some legislators have discussed the New York City real estate market for relief, reviving talk of the “pied-à-terre” property tax surcharge on qualifying non-primary residences within the state. https://www.natlawreview.com/article/covid-19-real-estate-revival-new-york-pied-terre-tax;

Policymakers in New York are debating whether to raise state taxes on wealthy residents to address fiscal challenges caused by the coronavirus pandemic, in an effort to minimize cuts to spending on valuable services. Last week, New Jersey became one of the first states to adopt a so-called millionaires tax to alleviate shortfalls caused by the pandemic. It will increase state taxes on income over $1 million by nearly 2 percentage points, giving New Jersey one of the highest state tax rates on wealthy people in the country. However, after the New Jersey deal was announced, Governor Cuomo again rejected calls for New York to impose a "millionaire’s tax," and State Budget Director Mujica noted: "The overwhelming majority of billionaires and millionaires in this state live or work in New York City. The combined state and city income tax rate is already 12.6%— which is higher than New Jersey’s new top rate or a proposed 12% ‘billionaire/millionaire tax rate.’”

Sales tax revenue, a major funder of local governments, dropped nearly 8% in August from a year ago because of the pandemic, but the monthly losses are easing statewide, according to state Comptroller Thomas DiNapoli. He also noted that state tax revenues were $3.2 billion lower in the first eight months of the year, compared to 2019.

The Legislature has not yet taken up additional forbearance legislation for residential investment properties and commercial retail space mortgage payments -- which were strongly opposed by IBANYS in original form -- but may well do so when it reconvenes. IBANYS opposes the legislation, and is working with the Legislature and the NYS DFS. The legislation, and IBANYS' Memo in Opposition, may be accessed in the links below.
Click here to read the legislation.
Click here to read IBANYS Memo in Opposition.

Meanwhile, DFS has issued a "FAQ On Forbearance For Residential Mortgages Held In Portfolio By NYS Chartered Banks" The NYS Department of Financial Services (DFS) has issued the "Frequently Asked Questions (FAQ) document on the state's new Residential Mortgage Forbearance Law on forbearance for residential mortgages held in portfolio by NYS chartered banks. IBANYS would like to thank the DFS team for providing guidance through this document, which IBANYS had suggested. The FAQ document may be accessed through the link below: https://ibanys.net/wp-content/uploads/2020/07/FAQ-on-Mortgage-Forbearance-Bill-7.22.20-Dist-update-2.pdf

Governor Cuomo issued a new executive order this past weekend that extended the commercial eviction moratorium until October 20th for those tenants that haven't paid their rent. The extension will largely impact commercial tenants that were facing eviction since before or on March 17th, as eviction proceedings that started during the pandemic will still be on hold.

Federal Judge Rakoff in Manhattan has ruled banks are not required to pay agent fees to accountants who helped borrowers apply for Paycheck Protection Program (PPP) loans. The judge dismissed the suits, stating: "Absent an agreement between agent and lender, defendant banks are not required to pay agent fees under the text of the CARES Act or its implementing regulations." The judge noted similar suits against banks are pending in courts around the country, and only one has been decided: A Florida federal judge decided in August that the CARES Act doesn't guarantee fees to agents who had no agreement with banks to provide application services.

Washington Update

The House passed ICBA-supported legislation that would modify regulatory processes to support Minority Depository Institutions. “The Ensuring Diversity in Community Banking Act of 2019” (H.R. 5322) would streamline Community Development Financial Institution application and recertification processes for community banks. Introduced by Rep. Gregory Meeks (D-Queens), the bill also would establish a new “Impact Bank” designation for qualifying banks serving low-income borrowers. The House earlier this year approved a separate ICBA-backed bill (H.R. 5315) to create a Treasury Department program for larger banks to mentor minority depository institutions and community banks under $2 billion. The bills advanced following congressional testimony in June from ICBA Minority Bank Council Vice Chairman James Sills and last fall from Council Chair Jill Sung, CEO of Abacus Savings Bank and a member of IBANYS’ Government Relations Committee.

ICBA is calling on community bankers to urge lawmakers to include common-sense policies benefitting local communities in the next economic stimulus package. A customizable message on ICBA's Be Heard grassroots action center calls on Congress to include provisions forgiving Paycheck Protection Program loans under $150,000, excluding PPP loans from regulatory asset thresholds, providing a lender safe harbor, and more. Following last week's failed Senate vote to advance a coronavirus relief package with ICBA-advocated PPP provisions, ICBA continues working with policymakers to advance pro-community bank provisions as soon as possible.

Treasury Secretary Mnuchin told a House Financial Services Committee hearing he believes there's "not more we can do" to enhance existing Treasury programs to help buoy the economy, and he and Federal Reserve Chairman Powell reiterated the economic benefit that another economic stimulus package would do. Congress remains stalled on the matter. Powell said the Fed's Main Street Lending Program isn't experiencing much demand for loans under $1 million and that the Paycheck Protection Program would be a better fit for loans of that size.

ICBA and other small-business groups expressed strong support for bipartisan legislation offering Paycheck Protection Program relief. H.R.7894 would streamline PPP forgiveness for loans of $150,000 or less, provide a lender safe harbor, and allow tax deductibility for business expenses paid with PPP funds. The House bill, introduced by Rep. John Curtis (R-Utah), is the latest in a series of House and Senate bills containing ICBA-advocated PPP reforms designed to jumpstart stimulus negotiations between Congress and the Trump administration, including the "skinny" package that failed to advance in the Senate last week.

ICBA urged federal regulators to exclude Paycheck Protection Program loan balances when calculating bank and bank holding company asset thresholds. ICBA said the agencies should quickly amend regulations to avoid temporary asset increases with PPP pushing many community bankers over regulatory thresholds and subjecting them to additional supervision, regulations, and costs. ICBA noted while it has already asked lawmakers to pass legislation directing the agencies to exclude PPP loans from asset thresholds, regulators are already authorized to do so. "Providing regulatory relief in this exceptional circumstance will ensure that community banks can continue to play a critical role in our nation’s economic response to this unprecedented pandemic."

IBANYS has urged New York Congressional Delegation To Support PPP Changes. As the stalemate between Congress and the Trump administration regarding the next coronavirus legislative package continues, IBANYS has written to the New York Congressional Delegation (and shared the letter with members of the NYS Legislature as an FYI) urging support of a number of important changes ICBA has suggested be made to the Paycheck Protection Program. Read IBANYS' letter to Congress. Read IBANYS letter

In a 359-57 vote, the House passed legislation to fund the government through Dec. 11 that includes funding sought by Republicans to help farmers hurt by President Donald Trump's trade policies and a Democratic-backed boost to nutrition programs. The Senate is expected to clear the measure by early next week, and Trump is expected to sign it to avoid a government shutdown.

Political analyst Bruce Gyory takes a first look at New York’s most contested congressional races in 2020, and finds that 5 RACES SERIOUSLY IN PLAY, 3 ADDITIONAL SEATS UPSTATE WORTH KEEPING AN EYE ON…

Additional Information

News Release | NR 2020-126 September 23, 2020

OCC Reports Decline in Mortgage Performance

WASHINGTON—The Office of the Comptroller of the Currency (OCC) reported the performance of first-lien mortgages in the federal banking system declined during the second quarter of 2020.

The OCC Mortgage Metrics Report, Second Quarter 2020 showed 91.1 percent of mortgages included in the report were current and performing at the end of the quarter, compared to 96.1 percent a year earlier.

The percentage of seriously delinquent mortgages—mortgages that are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due— increased 5.4 percent from the previous quarter and 5.3 percent from a year ago.

Servicers initiated 249 new foreclosures during the second quarter of 2020, a 98.7 percent decrease from the previous quarter and a 98.8 percent decrease from a year ago. Events associated with COVID-19, including foreclosure moratoriums during the second quarter of 2020, caused significant decreases in these metrics.

Servicers completed 10,984 mortgage modifications in the second quarter of 2020, and 89.0 percent of the modifications reduced borrowers' monthly payments.

The first-lien mortgages included in the OCC's quarterly report comprise 28 percent of all residential mortgages outstanding in the United States or approximately 15 million loans totaling $2.97 trillion in principal balances. This report provides information on mortgage performance through June 30, 2020, and it can be downloaded from the OCC's website, www.occ.gov.