October 20, 2021
IBANYS Weekly E-Newsletter
  • Visit our website at www.ibanys.net to review our daily updates on COVID-19.
The President's Message
By John Witkowski, President & CEO

 A reminder: Our new address is: 
Independent Bankers Association of New York State
194 Washington Ave, Suite 420
Albany, NY 12210

  • The OCC has released its bank supervision operating plan for fiscal year (FY) 2022. It provides the foundation for policy initiatives and for supervisory strategies as applied to OCC-supervised institutions. OCC staff members use this to guide their supervisory priorities, planning, and resource allocations. If you have any questions, please contact Ryan J. Portell, Program Manager, Banking Relations,Office of Public Affairs,Office of the Comptroller of the Currency: Ryan.Portell@occ.treas.gov. Below is additional information. https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-106.html

  • An interesting new “Morning Consult’s" quarterly report, The State of Consumer Banking, tracks how global consumer trends are evolving today and what they mean for the future of the financial services industry. Among the highlights: Traditional providers are moving to update legacy systems and keep pace, and fintechs and digitally native banks are expanding relationships through more traditional offerings in addition to their innovative products. There is strong demand for alternative financial services and digital options. Retail banking is getting more competition — including a lot from nonbanks. 48% of customers only use one bank, but 39% have two or more banking relationships. Most say they interact with their bank digitally. . .19% of U.S. and Canadian adults own cryptocurrencies.

  • Here's another look at how community banks under $10 billion in assets hold 13% of banking industry assets and 40% of the industry’s share of small-business loans. The Federal Reserve Bank of Kansas City noted in a recent  article that community banks were crucial to the success of the Paycheck Protection Program.

  • Today's newsletter includes the latest information and updates from Albany and Washington on programs, policies and issues with an impact on community banking. Get all the details in our Albany and Washington sections.

  • IBANYS needs your input and participation on our committees. Find out more about the opportunities available to play an important role in advancing the interests of the New York community banking industry, IBANYS and your own institution's future. Email me (Johnw@ibanys.net) or IBANYS' Director of Administration & Membership Services Linda Gregware (Lindag@ibanys.net) for more information on how to get involved!.
IBANYS MEETINGS
Mark your Calendars and Save the Dates - IBANYS 2022 Meeting Schedule

  • December 7 - Human Resources - ZOOM
  • February 8 - Compliance - ZOOM
  • April 4-5 - Mid-Year Conf. - ZOOM
  • April 11 - Directors - ZOOM
  • May 3 - Lending - (tentative) in-person
  • June 13-15 - Annual Convention - Turning Stone Resort & Casino - in-person
  • July 12 - Human Resources Update - ZOOM
  • September 12-13 (tentative) - West Point - in-person
ASSOCIATE MEMBERS & PREFERRED PARTNERS
Smart Ways to Find Loan Growth
By: David Ruffin, Principal, IntelliCredit 
In a long career focused on credit risk, I’ve never found myself saying that the industry’s biggest lending challenge is finding loans to make.
How to Build a Personal Loan Offer Campaign in 6 Steps
Empower your account holders to take control of their finances by offering them a personal loan to support their financial needs and wants. By clearly communicating and promoting your personal loan products, your bank has the opportunity to increase your fee and interest income with minimal effort. Discover the six steps to building an effective personal loan campaign that drives results and download free direct mail templates to get started on your campaigns today.
Free Webinar
October 28, 2021 - 12:00 EST
The webinar will address the strategies to getting the most out of technology solutions, adapting business processes and aligning the people in your organization to maximize digital transformation

Navigating a Cash Tsunami & Upgrade Overview
November 9, 2021 - 9:00 a.m. EST
Free Webinar
This is an opportunity for attendees to learn about alternative balance sheet management strategies that can help manage excess liquidity in the face of increasing deposits and low yields, and also provides an overview of the latest in digital underwriting. We’ll go over how Upgrade is utilizing cutting edge credit models, digital acquisition strategies, and innovative product development to provide affordable and responsible consumer credit while also helping banks with balance sheet diversification and customer acquisition. 
Wolf & Company's 2021 Financial Services Leadership Annual Summit
 
Join Wolf & Company every Friday in November from 1 - 3 p.m. for a panel discussion and educational session!
 
The financial services industry is evolving, and in order to excel, institutions must analyze their operations, anticipate the changing needs of their customers, and embrace the advancements emerging in their sector.
 
Wolf’s Annual Leadership Summit will offer a series of sessions and panels harnessing advanced expertise from both fintechs and financial institutions. From efficient IT system management and cybersecurity enhancements, to workplace culture evolution and fintech integration initiatives, we’ll offer inventive ways to promote growth and new techniques to adapt in this ever-changing environment.
 
During our 3 – part series experts and executives involved in the financial services, technology, and fintech industries will gather to discuss:
  •  The latest trends affecting financial institutions today
  • Creative techniques employed by executives to foster innovation
  • Ways to improve and empower your strategic vision 
Part I
Friday, November 5, 2021
1:00 p.m. - 3:00 p.m. EST
Platform: Zoom
 
TOPICS:
Initiating Efficient IT: A CIO’s Perspective
Preparing to Mitigate and Respond to Ransomware
Part II
Friday, November 12, 2021
1:00 p.m. - 3:00 p.m. EST
Platform: Zoom
 
TOPICS:
Fostering Foundation Fintech
Improving Legacy Core Processing Deals in the Age of Fintech
Part III
Friday, November 19, 2021
1:00 p.m. - 3:00 p.m. EST
Platform: Zoom
 
TOPICS:
Engaging Employees & Evolving Your Workplace Culture
Cryptocurrency Session
Links:
Register Now - use discount code: IBANYS and save 10%
View this week's Balance Sheet Insights report here.
 
Save the date
 
It's time for our 2021 Balance Sheet Strategy Seminar! Join us in person for an update on the challenges and opportunities in today's depository landscape. Scott Hildenbrand and the Piper Sandler financial strategies group will discuss weaponizing the ALCO process, liquidity, strategies vs tactics, policy management, relative value in the investment portfolio, funding and hedging opportunities, balance sheet advisory services, and the broader economy.
Additional highlights will include guest speakers and panelists, as well as updates on M&A and capital markets.

Date and location
Monday, December 6, 2021
111 East 48th Street | New York, NY 10017

Registration information coming soon.
October 2021

Actionable insights and tools to help you strengthen
the role IT plays in achieving your business goals.
What is the significance of Cybersecurity Awareness Month?
Cybersecurity Awareness Month is observed in the U.S. each October. The event is a collaborative effort between the government and IT industry to provide consumers and businesses with the resources they need to stay safe online.

Your CIO just quit, now what?
When an executive position becomes vacant, you need to fill it as soon as possible. A significant shift toward the use of interim executives now allows clients to have a smooth transition while searching for an executive replacement. Hiring a temporary executive is a wise business decision. 
 
8 steps to creating a cyber risk management plan
The purpose of a cyber risk management plan is to strengthen the organization’s cybersecurity posture in order to prevent data from being stolen, lost or used against the company in any way. Follow these eight steps to create a cyber risk management plan to help protect your business.
ICBA Information
Feb 27 - Mar 3, 2022
Join us in San Antonio for the largest annual convention for community bankers! Held Feb. 27 - March 3, 2022, ICBA LIVE is the best place to renew connections and make new ones.

Join together with ICBA and your industry colleagues from across the nation to celebrate our industry in person.

Our industry is ever changing: Learn about new trends and sharpen your knowledge in your area of expertise.

Explore the city take a walk across the River Walk, enjoy the vast selection of food and drink and take in the gorgeous San Antonio weather.
WEBINARS
computer hands
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. 
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.)
Albany Update

  • The State Department of Financial Services has posted on its website a draft of a proposed regulation amending Part 76 of General Regulations of the Superintendent (3 NYCRR Part 76). The proposed regulation would implement Banking Law § 28-b’s requirement that the Superintendent evaluate the extent to which state-chartered banks offer and provide credit and technical assistance programs to minority- and women-owned businesses when conducting CRA evaluations. Comments during this pre-proposal stage will be accepted through October 18, 2021. The proposed regulation is also subject to a 60-day comment period following publication in the State Register, which is forthcoming. To read the language: (https://www.dfs.ny.gov/industry_guidance/regulations/outreach_banking.) Any questions or comments you may have during this initial pre-proposal stage should be directed to Meredith Weill (meredith.weill@dfs.ny.gov).

  • NYS Attorney General James ordered two unregistered cryptocurrency lending platforms to cease and desist while asking three others for more information about their products. Fitch Ratings also  warned that stablecoins could pose risks to short-term securities markets. The announcements come after the Commodity Futures Trading Commission on Friday fined Tether—the largest stablecoin issuer—for misleading claims about its reserves. ICBA blog posts detail growing stablecoin risks to consumers and the financial system, how policymakers are responding, and what decentralized finance means for community banks.

  • The Office of the State Comptroller created a new online tool to monitor spending of federal recovery aid and COVID-19 relief programs in the State, including funds for excluded workers, childcare providers, emergency rental and homeowner assistance, and small business recovery. According to the tracker, the state has received $21 billion in federal pandemic relief money and has spent $6.1 billion since the end of September, the Times Union reports.

  • State budget director Mujica recently called in to the Capitol Pressroom to explain the minimum wage increases in suburban and upstate regions. Consumers in New York are tightening their belts amid fears of inflation and ongoing pandemic-related economic worries. 

  • Siena's New York State Index of Consumer Sentiment fell 11.8 points since the second quarter of 2021, to reach 71.9 points. A point total of 100 is the dividing line between consumer optimism and pessimism. Upstate residents were the most pessimistic of those surveyed, registering a score of 63.4. Republicans statewide were wariest about the economy and their spending power, registering a score of 59.9. https://www.timesunion.com/business/article/Upstate-consumers-fear-inflation-as-holidays-16532352.php

  • State Comptroller DiNapoli found that state tax collections since the start of New York's fiscal year in April have been $1.8 billion more than initially projected, reaching $7.2 billion through the end of September. DiNapoli said the better-than-expected tax receipts are a sign that New York is on the road to economic recovery. State of Politics reports.

  • As the pandemic-driven shift from office to work-from-home appears to be becoming more permanent, there are estimates it could cost New York City $111 million in sales tax revenues alone, the Post reports.

  • Gov. Hochul moved to expand access to the state's COVID-19 data with the unveiling of an expanding tracking website to give New Yorkers a better understanding of pandemic-related deaths and cases across the state.  State of Politics reports.

  • Governor Hochul issued a proclamation announcing October 2021 as Cyber Security Awareness Month in New York State. "As cyberattacks continue to rise, it is critical for all of us to secure potential gaps to reduce the risk of such attacks," said Acting Superintendent of Financial Services Adrienne Harris. "The New York State Department of Financial Services continues to uphold the Department's innovative, first-in-the-nation cybersecurity regulation to help ensure regulated entities are vigilant against cyberattacks, protecting consumers and the integrity of New York's financial services industry." https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202110142


  • While the 2022 primaries are many months away, but City & State has updated its authoritative list of incumbent Democratic legislators who already have to start worrying about challengers.
Washington Update


  • After lawmakers proposed tweaks to a widely opposed IRS reporting proposal, ICBA reiterated that no amount of updating will salvage the misguided plan. Latest: Facing broad public opposition to the reporting plan, Senate Finance Committee Chairman Ron Wyden (D-Ore.) proposed raising the account flow threshold and exempting certain transactions, which the Treasury Department  endorsed. Pushback: In response, ICBA said the proposed tweaks would benefit hardly any taxpayers, make the policy more difficult to implement, and do nothing to address the proposal’s privacy, due process, and data security concerns. Additionally, Republican senators held a press conference citing continued opposition to the plan. Call Alert: ICBA continues urging community bankers to use its call alert and customizable script to speak out against the proposal to their members of Congress. ICBA Campaign: Community bankers can also continue using customizable email and social media content to urge consumers to contact Congress in opposition.

  • ICBA advocated updates to bipartisan legislation that would create a cyber incident reporting regime to avoid excessive burdens on community banks. Background: The Cyber Incident Reporting Act (S. 2875) would establish a cyber incident response office at the Cybersecurity and Infrastructure Security Agency and require critical infrastructure, including financial institutions, to report cyber incidents within 72 hours. ICBA Position: In a letter to lawmakers, ICBA expressed support for the bill’s goal of improving information sharing between CISA and the private sector and harmonizing the regime with existing regulations; advocated loosening the 72-hour reporting timeline, expanding public-private information sharing, and removing duplicative penalties. Next: The act is one of three bipartisan cyber incident reporting bills lawmakers are considering for inclusion in the 2022 National Defense Authorization Act.

  • ICBA and other groups expressed opposition to legislative proposals that would change the Section 199A deduction for pass-through businesses. Section 199A, which is scheduled to sunset in 2025, includes a 20% deduction for qualified business income among pass-through businesses, including S-corporations. A joint letter to key committees cited the Small Business Tax Fairness Act (S.2387), which would simplify the 199A deduction but exclude numerous small businesses from the deduction. ICBA has separately expressed support for the bipartisan Main Street Tax Certainty Act of 2021 (H.R. 1381 and S. 480), which would make the deduction permanent.

  • Two leading House Republicans expressed concerns with the Small Business Administration’s lack of communication and responsiveness with small businesses and lenders. House Small Business Committee Ranking Member Luetkemeyer (Mo.) and House Financial Services Committee Ranking Member McHenry (N.C.) cited conflicting messages and unanswered questions related to the Paycheck Protection Program and Economic Injury Disaster Loans. Advocacy: In congressional testimony last month, ICBA said the SBA must respect lenders that choose not to use its PPP Direct Borrower Forgiveness Portal, which led the agency to withdraw its threat to audit PPP lenders that don’t participate.  Additional PPP information is available on ICBA's PPP Resources page.

  • The FHFA announced two measures to advance homeownership affordability in underserved communities. Refinance: Fannie Mae and Freddie Mac will in the coming months expand certain eligibility requirements for their RefiNow and Refi Possible refinance programs aimed at assisting low-income borrowers.Appraisals: Additionally, the enterprises will incorporate desktop appraisals into their selling guides for many new purchase loans, starting in early 2022.

  • The Farm Credit Administration posted its latest regulatory projects plan. The plan cites pending regulations on a Farm Credit System bridge bank; an annual strategic plan on young, beginning, and small farmers; collateral evaluation regulations; and more. Appraisals: On the proposed collateral evaluation regulations, ICBA this year told the agency that it should not provide Farm Credit System lenders with lower standards for appraisals and valuations than those required of community banks. Grassroots: ICBA continues encouraging community bankers to use ICBA’s Be Heard grassroots alert urging congressional support for legislation to exempt from taxation interest income on community banks’ farm real estate and rural mortgage loans.