June 1, 2022
IBANYS Weekly E-Newsletter
2022 Convention Sponsors - to date

  • Advanced Media New York
  • Bankers Healthcare Group (BHG)
  • CEIS Review
  • COCC
  • Federal Home Loan Bank of NY
  • Hartman Executive Advisors
  • ICBA
  • NEACH
  • Pillar+Aught
  • Piper Sandler
  • Plante Moran
  • Pursuit
  • Roosevelt & Cross
  • SHAZAM
  • Shield Compliance
  • Sunwealth
  • T. Gschwender & Associates
  • TransWestern Capital Advisors
  • The Baker Group
  • Wolf & Co.
President's Message

IBANYS 46th Annual Convention will be “MOBILIZED” in three short weeks at the Turning Stone Resort & Casino. This event is developed by bankers for bankers and is a “must attend” event. Why is this a “must attend” event….IBANYS President & CEO John Witkowski shares some thoughts on why you should attend.  CLICK HERE
 
**********
The Legislature is scheduled to adjourn for the year tomorrow – although it's possible they may work into the weekend. As of now, it appears the efforts by IBANYS, our member banks and allies to stop proposals to establish public banking in New York and to allow credit unions to bid on municipal deposits have proven successful.  IBANYS is closely monitoring these and other issues with potential impact on community banks as the session draws to an end. See the Albany section for full details.


The FDIC issued the lists of institutions scheduled for CRA exams during the third and fourth quarter of 2022. The schedules are based on the best available information and are subject to change.


The Conference of State Bank Supervisors is seeking responses to its 2022 National Survey of Community Banks, which focuses on current conditions, emerging issues, and the future of community banking. Survey responses are due by Friday, July 15. If you'd like to participate: Take the survey.
IBANYS MEETINGS
Join IBANYS’ 2022 Annual Convention — June 13-15, 2022 —
Turning Stone Resort & Casino, Verona, NY
 

 
AUCTION ITEMS NEEDED: Do you have a unique item you would like to donate to the auction? — please see page 11 of the attached brochure to learn more. This is a fun and exciting event MC’d by ‘THE MOST ANNOYING’ PERSON TO HOLD A MIC - John Witkowski.
            
Associate Members, Preferred Partners and service provides for community banks, we still have a few booths available - secure you locations today (see page 10).

Please do not hesitate to contact us if you have any questions or need more information.  
Guidance for New Directors
Thursday, June 16 — 11:00 - 12:30 p.m.
This session will focus on fundamental board governance issues and is designed for Directors with less than five years’ experience.
This session will be hosted on MS Teams

CONVENTION SPONSORS
On behalf of IBANYS members, Board of Directors and staff we want to extend our thanks to all the sponsors of IBANYS 46th Annual Convention and for all they do for all New York Community Banks.

Please click on each of the companies to learn more about the company and how they can help you.

This week we are highlighting our Silver Sponsors.
Breakfast - Tuesday
The Baker Group is one of the nation’s largest independently owned securities firms specializing in investment portfolio management for community financial institutions. Since 1979, we’ve helped our clients improve decision-making, manage interest rate risk, and maximize investment portfolio performance.
Breakfast - Wednesday
Hartman Executive Advisors is an independent technology and cyber leadership firm working with community bank leaders to strengthen the role that IT plays in supporting their business goals. We help banks leverage technology to evolve the traditional business model and increase operational efficiency, acquire new market share, enhance the customer experience and ultimately drive profitability. We understand that the competitive landscape requires new, or improved use of, technology, better access to data, and advanced analytics to drive business outcomes. Our banking experts can help you with CIO/CISO leadership, IT strategy assessment, software selection, data analytics, digital transformation, security, compliance and risk management, and M&A support. Since Hartman doesn’t profit from the sale of any system or technology, clients can trust the advice and guidance they receive is strictly in their best interest.
Program Book
T.Gschwender is a diversified consulting company that has been supporting financial institutions since 1984. We like to describe ourselves as a highly sophisticated “Credit Department,” providing Independent (risk-based) Loan Reviews, CRE Stress Testing, Appraisal Reviews, Annual Reviews, Underwriting support and special project assistance. Our employees have extensive banking and corporate management experience with an excellent understanding of your needs. Using a proprietary, state-of-the-art, system enables our “risk-based” loan reviews to be among the best in the industry.  For clients with electronic files, we can offer any service on a remote basis. Contact us at info@tgschwender-assoc.com.
Refreshment Breaks
Based in Harrisburg, Pennsylvania, Pillar+Aught is a modern, full service law firm providing sophisticated legal counsel to community banks located throughout the Northeast. Its attorneys work directly with c-suite executives, lenders, human resource managers and compliance and workout personnel, offering comprehensive and cost-effective counsel to stock and non-stock community banks and their affiliates.
ASSOCIATE & PREFERRED PARTNERS
June CECL Coffee Talk Q&A 
QwickRate® is hosting a monthly Q&A session on all things CECL. Join QwickRate President Shawn O’Brien and QwickAnalytics Director of Analytics Steve Huntington this month on Friday, June 10 at 10am (Eastern). They’ll address the latest questions and concerns they are hearing, clarify misinformation, and then open up things for an audience Q&A.
May 2022
BANKING ON SOLAR
The TCFD Framework

In April, Sunwealth spoke with Steven Rothstein of Ceres about the SEC's climate disclosure proposal, which is founded on elements from a framework created by the Task Force on Climate-Related Financial Disclosures (TCFD). Today, this framework is supported by more than 1,384 financial firms responsible for $215.6 trillion in assets under management.
It's clear that, as regulators continue to integrate climate risk into their rulemaking process, community banks and corporations at-large have a chance to turn these risks into opportunities.
Read more about the TCFD framework and its recommendations, and reach out to learn more about how Sunwealth is putting capital to work for good.
Best,
Darreck J. Mitchell, CRPC®
Director of Capital Markets
(781) 367-2137
ICBA INFORMATION
The Great Escape
The bond market braces for the Fed’s wind-down of its balance sheet.
By Jim Reber, ICBA Securities
If bond investors (you) were running low on things to worry about for the rest of the year, I’ve got some terrific news: The $9 trillion portfolio owned by our central bank will begin to shrink. Soon. And at a feverish pace, I might add.

We’re into new territory for a number of reasons. The most obvious is that the mountain is double its size the last time a wind-down started. Another reason is that inflation, in case it’s escaped your notice, is at a 40-year high. Still another is that consumers no longer believe that prices will get back into their 2%-per-year box they’ve been confined to for the better part of a decade. So, this high-wire act has some drama attached.
ALBANY UPDATE

The Legislature is scheduled to adjourn for the year tomorrow, although they could work into the weekend.  While nothing is certain until the closing gavel comes down, it appears efforts by IBANYS, our member banks and allies have succeeded in helping to stop proposals to establish public banking in New York and to allow credit unions to bid on municipal deposits have proven successful.

1)  Public/State Banking: In the face of strong and united efforts by a coalition of progressive legislators and consumer and community activists,  IBANYS has met with the Senate and Assembly Banks Committee Chairs, Sen. Sanders (D-Brooklyn) and Assemblywoman Fahy (D-Albany), to offer suggestions on how the needs of unserved and underserved communities can be met using existing vehicles. Rather than approving public banking at the local or state levels, the Legislature appears poised to pass A.9711-B, Peoples-Stokes/S.8449-B, Sanders to establish a temporary commission "to conduct a feasibility study on the formation and control of a state public bank.” IBANYS is prepared to work closely with the commission to present our suggestions and concerns on behalf of New York community banks.  Read IBANYS’ original Memo in Opposition to establishing state/public banking in New York … and, Read IBANYS Background & Talking Points Opposing this legislation.


2) Credit Unions/Municipal Deposits: The credit union once again put a big push on this year to gain the right to enter the municipal deposits business -- and, IBANYS once again expressed our opposition, including discussions with the Chairs of the two Banks Committees to explain our positions and concerns. Assembly Banks Chair Fahy subsequently pulled her Assembly version of the bill (A.08289), saying it “needs more work.”  The issue appears tabled for this legislative session.



IBANYS is also closely monitoring these and a number of other issues with the potential to impact community banks as the session draws to an end.


  • Both the Senate and Assembly have passed the mandate on cashing checks less than $500 drawn on an account at the bank. S7537-A, Sanders/A.1082, Abinanti specifies that a banking institution must cash checks drawn on said institution if the payee presents a valid form of identification. If signed by the Governor, this act shall take effect on the ninetieth day after it becomes law. 

  • Nearly 200 bills were introduced or amended over the Memorial Day weekend. There’s no guarantee the Legislature will act on them this week, but it may indicate some are part of the end-of-session agenda. Here’s where some top issues stand.  Legislators appear ready to allow the 421a real estate tax break expire, and are unlikely to address other housing matters wanted by advocates, such as the Good Cause eviction measure.


  • The State Senate has passed legislation (S.1480, Krueger) to prohibit employers from requiring job applicants to disclose their age, date of birth or date of graduation. The Assembly has not yet passed its companion bill (A.7550, Kim).

  • Typically, the Legislature does not like to return for special sessions during election years, and that’s complicated further this year by a split primary season due to the redistricting legal challenges: The Assembly and the statewide races will be held on June 28, while State Senate and Congressional primaries are on August 23. However, Hochul has said if the U.S. Supreme Court strikes down the state’s “conceal carry law, she would call the Legislature back to Albany to take up legislation in response.  

  • ​​Change is coming for both parties in the State Senate. Democratic Senators Kaminsky (L.I.), Savino (Brooklyn/S.I.) and Gaughran (L.I.) are not running for reelection, and Senator Biaggi (Bronx/Westchester) is running for Congress.  Republican Senators Boyle (L.I.), Ritchie (North Country/Central NY) and Akshar (Southern Tier) are not running for reelection, nor is Senator Martucci, who was set to take on State Senator James Skoufis, a Democrat who currently represents 39th District, in the new 42nd District. GOP Senators Tedisco & Jordan will face off in a primary in the Capital District.   Read More

  • State DFS Superintendent Harris recently stated:  “A fast-moving industry like virtual currency requires strong regulation. Regulation plays an important role in protecting consumers against market volatility and scams; maintaining the integrity of the market by guarding against sanctions evasion and illicit activity; and ensuring corporate infrastructure and consumer data are both well-protected from cybercriminals. These are the critical risks that we at DFS are committed to mitigating as the preeminent regulator of virtual currency.” Harris discussed these topics and more at a number of public and industry events, including the Wall Street Journal’s Future of Everything, Chainalysis Links, and Operation Hope’s Cryptocurrency + Digital Assets Summit. She concluded: "As the industry continues to evolve, DFS will continue to improve upon our regulation and supervision; engage with key stakeholders on important trends and issues; collaborate with state, federal and international regulators; and strive to be a forward-looking, innovative regulator, including through our VOLT initiative. . ."

  • The State Comptroller‘s office periodically releases its analysis of local sales tax collections by county and region.  April’s findings reported strong local sales tax collections throughout most of the State. Local sales tax collections grew by 15.7% in April compared to the same month in 2021. Overall, local collections totaled $1.7 billion, up $232 million from April of last year.  Monthly Local Sales Tax Collections by County and Region (detailed monthly breakdown.) Nearly every county experienced significant year-over-year growth in collections, due, in part, to recent high inflation. For details, contact Elliott Auerbach, Deputy Comptroller, Division of Local Government and School Accountability at 518-474-4037.

  • Today, the state gas tax suspension passed as part of the budget in April takes effect and will continue  through the end of the year. The national average price for regular gas hits more than $4.60 a gallon, with the state's average reaching nearly $5 a gallon.  Read more.

WASHINGTON UPDATE

  • ICBA wrote to support the CFPB’s amended procedural rule governing supervision of nonbanks, which ensures a level playing field with community banks and offers consumers greater protection. In its letter ICBA also urged the CFPB  to supervise and monitor credit union CUSOs, which are nonbanks and not actively supervised by NCUA or any other federal agency.  “ICBA has long held that nonbanks should be examined and supervised for compliance with federal consumer protection laws,” ICBA wrote. “This procedural amendment will provide the public with confidence that the CFPB is protecting consumers from potential harm committed by nonbanks.”  ICBA last year called on the bureau to ensure nonbanks that access customer financial information take the same care in protecting consumer privacy and data as community banks. 

  • ICBA and other trade groups wrote to request a 30-day extension to submit comments on the agencies’ interagency proposal to modernize Community Reinvestment Act regulations. The 678-page proposal introduces many novel metrics and benchmarks that require considerable time to study and formulate specific recommendations, ICBA argued. “Complex regulatory overhauls that are rushed tend to have little staying power or require extensive amendments and/or interpretations. In the case of CRA, both banks and communities would benefit from a modernized regulatory framework that stands the test of time,” the groups wrote.  The current comment period is set to expire Aug. 5.

  • Community bankers have until this Friday, June 3, to submit personalized comment letters to the FDIC on its draft statement of principles for climate-related financial risk management for large financial institutions. To help community bankers submit unique comments, ICBA offers a summary of the proposal and guide to submitting a comment letter to the FDIC.  The FDIC proposal would impose a climate-related financial risk management framework for institutions over $100 billion in assets. However, the FDIC said in releasing the plan that all financial institutions may have material exposures to climate-related financial risks—raising concerns that the principles will trickle down to community banks.  Using ICBA’s summary of the proposal and guide to submitting a comment letter, community bankers can also point out that they are not threatened by climate-related financial risks, already manage climate-related risks, and are experienced at helping local communities prepare for and recover from severe weather events.

  • With Congress is back home this week, community bankers can urge their lawmakers to oppose legislation that would expand credit unions’ fields of membership and commercial lending powers. Use ICBA’s Be Heard grassroots action center to express opposition to the “Expanding Financial Access for Underserved Communities Act“ (H.R. 7003), which would expand credit union powers to serve low-income and underserved areas without requiring proper documentation or oversight.  ICBA recently told the House Financial Services Committee that H.R. 7003 focuses on low-income areas rather than low-income families and individuals, with geography a poor proxy for household income. ICBA is urging Congress to reject the bill if it goes to the House floor as yet another loophole for taxpayer-subsidized credit unions.