IBANYS Human Resources Update held yesterday via Zoom was well attended. Katherine McClung, Partner, Bond Schoneck and King provided important and timely updates of the Federal and State Labor Laws. Joes Spivey, Learning and Development Manager, Diversity Officer, SHAZAM Network shared his knowledge and expertise with the attendees on Rapid Retention and Grooming Your Next Set of Leaders. This meeting was very interactive and provided some great information and ideas for those in attendance. 

We are finalizing our speakers and meeting agenda for the Compliance Conference scheduled for February 7. Watch you emails for detailed program agenda and registration information. See “Save the Dates” information below for all IBANYS upcoming events/meetings.

Community Bankers Webinar Network powered by Fin Ed, with whom IBANYS partners, has posted their 2023 Webinar schedule. Please click here to see the current list of offerings.

The New York State Dept. of Financial Services (DFS) recently issued a proposed regulation https://www.dfs.ny.gov/system/files/documents/2022/10/rp23a2_text_20221109_0.pdf on Cybersecurity ("Proposed Second Amendment To 23 NYCRR 500 Cybersecurity Requirements For Financial Services Companies"). IBANYS would like to know if you and/or your CISO have any comments or feedback on the proposal. Contact John Witkowski: Johnw@ibanys.net.

IBANYS is proud to announce our new partnership with Rivel, Inc., a market research company with the world’s largest sample Banking Benchmarks Study.

Along with price discounts for new subscription from IBANYS members, Rivel has agreed to provide each of our MEMBER BANKS a Retail Prospect Report extract. These extract reports will be sent to 5 banks each week through the end of the year. These reports will provide information that banks can review for use with their marketing strategies.

We look forward to working with Rivel, Inc. and introducing their platform of reports to our banks in NYS.

Any questions, please call me at 716.880.0518 (cell) or 518.436.4646 (office).

If you have specific questions regarding Rivel, please contact Dailey Betz at 641.529.2380 or email dbetz@rivel.com

John

MEMBER BANKS

Does your bank have news you’d like to share? If so, please send us an email (lindag@ibanys.net) and your news will be placed in our weekly e-newsletter.

We look forward to sharing your news and all that you do for and in your communities.

IBANYS MEETINGS

December 2022

BANKING ON SOLAR

ITC Adders & 2022 Virtual Renewable Energy Summit

Over the last few months, Sunwealth has been providing coverage of the Inflation Reduction Act (IRA), what it means for the community solar market, and the opportunities it holds for our community bank partners. As our team of project developers, financiers, and investment experts navigate implementation of the IRA, we want to discuss other significant provisions of the law: investment tax credit (ITC) adders.

Our latest blog highlights key elements of the solar ITC adders and how they serve to maximize the return on investments in community-based solar projects.

READ THE BLOG

Last Chance to Register!

Community banks are taking immediate action to position their portfolios for a better clean energy future. Please join us tomorrow in partnership with the Massachusetts Bankers Association at the:

2022 VIRTUAL RENEWABLE ENERGY SUMMIT

Thursday, December 8th from 9:30am to 11:30am EST via Zoom

REGISTER

In addition to learning about programs that will help grow your lending portfolio, attendees will hear from a panel of experts that will provide insight on how the Inflation Reduction Act (IRA) will impact investment opportunities for the banking community and influence workforce development in Massachusetts! Join me as I facilitate a discussion with Dr. Aisha Francis, President and CEO of the Benjamin Franklin Cummings Institute of Technology, Jon Abe, CEO of Sunwealth, and Robert Terravecchia Jr., Chairman, President, & CEO of Coastal Heritage.

Time's Almost Up for CECL: See How CECLSolver Can Help

Thursday, December 8 at 10:00 am ET

It’s not too late to change your mind about your bank’s solution for CECL compliance. In this brief demo, QwickRate will show you their QwickAnalytics CECLSolver solution—a practical, easy-to-use tool that is already helping hundreds of banks to meet compliance requirements. Take the mystery out of WARM calculations, Q factors and timelines. And without having to pay consultants or suffering from 'analysis paralysis.' Register here:

CECL Compliance Q&A Session

Friday, December 16 at 10:00 am ET

Join QwickRate’s December CECL Coffee Talk with special guest Paul Allen, CPA, CGMA from Saltmarsh, Cleaveland & Gund accounting and consulting firm. During this interactive Q&A session, the panel will share best practices, clarify misinformation, and more. Bring your CECL questions! Open to any bankers – whether you use the QwickAnalytics CECLSolver tool or not. Register here:

• A coalition of more than 46 statewide progressive groups is pushing for “a more just economy, especially for low-income communities of color which have historically struggled in the face of red-lining. https://nystateofpolitics.com/state-of-politics/new-york/politics/2022/12/02/new-york-coalition-pushes-for-economic-justice-in-next-legislative-session. The goal of the New York State Community Equity Agenda is to make changes to the state’s banking and finance laws. The New Economy Project, which coordinates the coalition, cited five areas under the heading “public money for public good” including: 1) Passage of the NY Public Banking Act; 2) Government crackdown on persistent redlining and other racial wealth extraction; 3) Increased funding for New York’s community development financial institutions (CDFIs); 4) the immediate release of funds committed by the governor in 2020; Support for worker-owned businesses, and Legislation to expand community land trusts and other forms of social housing. For more information: www.equityagendany.org.

• Related: What Progressives Want From Albany In 2023. https://nystateofpolitics.com/state-of-politics/new-york/ny-state-of-politics/2022/12/05/what-progressive-advocates-want-from-albany-in-2023

• On Jan. 4 Gov. Hochul will deliver her first “State of the State” address as a governor elected by the voters, and she has already provided insights about her priorities. She intends to focus on gun safety; creating more affordable housing; She noted the economy has taken a downturn since the state budget was approved last April and that she needs to be more careful about state spending. Hochul recently vetoed bills that would have created several task forces and studies urged by the Legislature -- which would have cost over $40 million in new state spending – and noted many were already being undertaken by state agencies and departments. The Governor will talk more about the state’s finances in her state budget presentation later in January when she will outline her proposed 2023-24 state budget. https://www.wxxinews.org/capitol-bureau/2022-12-06/hochuls-state-of-the-state-speech-will-focus-on-housing-and-fighting-illegal-guns

• Albany will host its first gubernatorial inaugural ceremony in a dozen years when Gov. Hochul hold the event at the Empire State Convention Center January 1. Read More. 

• Expressing concerns over its costs, Gov. Hochul vetoed legislation that would have created a commission to study paid family leave in New York and make recommendations for how to expand access to it. Read More. 

• Jamestown, New York is going all in on cannabis: “‘We were one of the first cities in New York State to say, “Come look at us, come look at the city of Jamestown, let us be your place to develop,”’ said Democratic mayor Eddie Sundquist.

• State Health Commissioner Mary Bassett plans to resign on Jan. 1, marking a departure of the highest-profile member of Gov. Hochul's cabinet before she starts her new four-year term. Read More. Longtime State Budget Director Bob Mujica is also stepping down.

• Federal prosecutors are appealing a federal judge’s decision to dismiss bribery charges against former State Lt. Gov. Brian Benjamin because prosecutors failed to show Benjamin steered $50,000 in state funds to a nonprofit directly in exchange for fraudulent contributions to his failed city comptroller campaign. Benjamin, then a state senator from Harlem, still faces two falsification-of-records charges because he allegedly lied on campaign forms and vetting documents he provided to Gov. Hochul before she selected him as her lieutenant governor shortly after taking office. Hochul won a full term in office last month with Benjamin's successor as Lt. Gov. Antonio DelGado on the ticket. https://enewspaper.nydailynews.com/infinity/article_share.aspx?guid=469f0f76-a504-4c1e-b954-ab4b74743ea1

• Brooklyn's two most prominent Democrats are now the top Democrats in Washington, and they're highlighting their alliance. New York City, once neglected by Washington, stands to benefit from Schumer and Jeffries as Congressional leaders 

• ICBA expressed strong support for the introduction of Senate legislation to close the industrial loan company loophole.  The ILC loophole allows large tech companies and other commercial firms to own and operate FDIC-insured banks while skirting federal regulations that apply to other banks. This leaves a gap in safety and soundness oversight, creates an unlevel regulatory playing field, and violates the separation of banking and commerce. The Close the Shadow Banking Loophole Act—introduced by Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and Sens. Bob Casey (D-Pa.) and Chris Van Hollen (D-Md.)—would subject ILC holding companies to the Bank Holding Company Act and the consolidated supervision of the Federal Reserve, closing the loophole. Following the House Financial Services Committee's passage of the bipartisan Close the ILC Loophole Act (H.R. 5912) earlier this year, the Senate introduction of a substantially similar bill offers Congress an opportunity to pass this bipartisan legislation during the current session. ICBA Response: In a national news release, ICBA President and CEO Rebeca Romero Rainey called on lawmakers to advance the legislation. ICBA also advocated passage in a joint letter with state community banking associations as well as a joint letter and news release with other financial services and consumer groups.  In a comprehensive white paper, ICBA details the transformation of the ILC charter into the fashionable charter of choice for firms seeking to benefit from the federal safety net while avoiding oversight. READ MORE

• The CFPB released Home Mortgage Disclosure Act  enforcement guidance  following a recent court ruling vacating its 2020 HMDA final rule.  A U.S. district court in September vacated the higher loan-volume threshold for closed-end mortgage loans established under the 2020 HMDA rule. The decision means the threshold for reporting data on closed-end mortgage loans is now the 2015 level of 25 loans in each of the two preceding calendar years, down from the 100-loan threshold set by the 2020 rule.  A CFPB's blog post said: 1) It recognizes that financial institutions affected by this change may need time to implement or adjust policies and operations to come into compliance; 2) In these circumstances, the CFPB does not view action regarding these institutions’ HMDA data as a priority; 3) It does not intend to initiate enforcement actions or cite HMDA violations for failures to report closed-end mortgage loan data collected in 2022, 2021, or 2020 for institutions subject to the CFPB’s enforcement or supervisory jurisdiction that meet Regulation C’s other coverage requirements and originated at least 25 closed-end mortgage loans in each of the two preceding calendar years but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years.  Outlook: The prudential banking regulators traditionally issue interagency announcements on HMDA expectations, so the agencies could follow the CFPB post with joint guidance.  ICBA Position: ICBA is cautioning policymakers that the regulatory burden on community banks that were previously exempt from HMDA reporting outweighs any benefits to the agency and consumer groups of accessing the aggregate data points. ICBA is reviewing the ruling and blog post and will continue to raise concerns with CFPB.

• The latest draft of the fiscal 2023 defense reauthorization bill did not include provisions that would allow the cannabis industry to use banking services. Rep. Perlmutter (D-CO) who had introduced a cannabis banking bill in the House, blamed Senate Minority Leader McConnell (R-KY) for blocking the measures. Sen. Warren (D-MA), a co-sponsor of a cannabis banking bill in the Senate, said that cannabis banking provisions are being considered as part of the omnibus spending bill that is currently being negotiated.  Roll Call

• As Congress considers must-pass end-of-year legislation, ICBA is calling on community bankers to contact their members of Congress on top advocacy priorities.  1) Cannabis Banking: Through ICBA’s  Be Heard grassroots action center, community bankers can continue calling on lawmakers to pass the SAFE Banking Act, which would establish a cannabis banking safe harbor in states where cannabis is legal. 2)  Durbin Amendment: ICBA is also calling on community bankers to urge opposition to legislation that would extend the Durbin Amendment to credit cards, imposing new costs, raising security risks, and ending credit card rewards programs.

• The OCC’s Chief Climate Risk Officer Yue Chen said the agency's push for companies to consider climate risk is meant to serve as a risk management strategy and isn't intended to drive banks to contribute to lower carbon footprints or embrace any certain climate views. Chen, previously with NYS DFS, noted at a sustainability conference that the OCC has so far directed its climate-risk guidance to large banks with more than $100 million in assets, and while the agency doesn't plan to issue climate guidance for mid-size banks for "some time," they should consider using their time "wisely" in the interim.  The Wall Street Journal

• ICBA thanked a bipartisan group of senators for introducing ICBA-advocated legislation to authorize the National Credit Union Administration to examine credit union third-party service providers for cyber risk. Background: Introduced in August by Sens. Jon Ossoff (D-Ga.), Cynthia Lummis (R-Wyo.), and Mark Warner (D-Va.), the Improving Cybersecurity of Credit Unions Act (S. 4698) would address concerns that the NCUA does not have the same authority as bank regulators to supervise for cyber risk. ICBA Letter: In a letter to the bill sponsors, ICBA noted that it would implement a recommendation of the Government Accountability Office, the Financial Stability Oversight Council, and the NCUA Inspector General. Senate Banking Committee Chairman Sherrod Brown (D-Ohio) expressed support for the bill during a hearing last month.  ICBA Position: As ICBA testified before the House Financial Services Committee last year, it supports allowing the NCUA to directly examine and regulate credit union service organizations, core providers, and other large third-party service providers.  Grassroots: Community bankers can continue urging Congress to hold hearings on the credit union tax exemption using a customizable message to lawmakers on ICBA’s Wake Up page and its Wake Up Messaging Playbook.

• Senate Banking Committee Chairman Brown (D-OH) said he expects the committee to be "increasingly aggressive" in its efforts to legislate crypto during the next Congress. Brown said in an interview that he thought the Senate Agriculture Committee had been too friendly to the industry, adding that consumer protection and national security issues were likely to drive the banking committee's efforts.  Roll Call

• The Fed invited public comment on proposed principles for large banking organizations on managing exposures to climate-related financial risks.  The proposed principles—which the Fed said are substantially similar to proposals issued by the FDIC and OCC—would apply to banking organizations with more than $100 billion in total assets.  ICBA strongly opposes climate risk regulation of community banks and has told policymakers any trickle-down effect of large bank regulation in this area will stifle innovation and create barriers to serving consumers and small businesses. ICBA has expressed concerns with the FDIC and OCC climate risk proposals for larger institutions, noting they could ultimately apply to community banks, and has also said the SEC’s climate risk plan — which includes no exemptions for smaller institutions — would discourage financial institutions from doing otherwise lawful business and participating in the public capital markets. 

• ICBA and other groups called on Congress to oppose Small Business Administration proposals to detrimentally reform its 7(a) lending program. Their  joint letter, the expressed concerns with SBA proposals to: Lift the moratorium—which has been in place since 1982—on the number of non-federally regulated institutions, including nonbank fintech companies, that can make loans under the 7(a) program; Loosen or remove the 7(a) program’s requirements for how lenders underwrite loans and how borrowers may use loan funds.The proposals would harm long-existing, prudent lending standards that have ensured the 7(a) program’s integrity for decades, the groups said. They also warned that the proposal could harm the very underserved borrowers the SBA is trying to aid. The groups said they will submit formal comments to the SBA opposing the proposals, though it called on lawmakers to engage the agency given Congress’s interest in ensuring the integrity of SBA’s cornerstone loan program. 

• U.S. Sen. Raphael Warnock (D-GA) defeated GOP challenger Herschel Walker in a runoff election yesterday, securing a 51-seat Democratic majority and giving him a full six-year term, the Times reports. The 51st vote means Democrats will have majorities on all Senate committees, (which currently have equal numbers of Democrats and Republicans) -- making it harder for Republicans to slow down legislation or nominations at the committee level. Democrats will have a bit of breathing room with Warnock’s victory, but it isn’t expected to translate into a fuller legislative agenda. Getting 60 votes on anything will still be difficult, and using budget reconciliation to move legislation with only a simple majority vote doesn’t make much sense with any proposal sure to be rejected by the Republican-led House. https://www.washingtonpost.com/politics/2022/12/07/how-big-deal-is-51st-senate-vote-anyway/?utm_campaign=wp_politics_am&utm_medium=email&utm_source=newsletter&wpisrc=nl_politics&carta-url=https%3A%2F%2Fs2.washingtonpost.com%2Fcar-ln-tr%2F3882920%2F63907f6d9d88976ba34cb455%2F60197967ae7e8a31ba1ab47c%2F13%2F62%2F63907f6d9d88976ba34cb455