August 11, 2021

IBANYS Weekly E-Newsletter

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

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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. Hope everyone is having a great summer.     Much of this weeks newsletter is to highlight our upcoming meeting, the "Come Back Celebration" in Clayton, NY. It would be great to have all of our community banks, preferred partners and associate members together and celebrate all of your success over the last 18 months. There are still sponsor opportunities for the meeting. We would love to have your support. Sponsor form is attached. IBANYS is, of course, closely monitoring the status of pandemic/variant issues, and will be taking every precaution to keep attendees safe. We will hold many of our activities outdoors, weather permitting, and will be socially distancing indoors. While there is currently no mask mandate in place, those who are more comfortable wearing masks are encourage to do so. # # # We also hope you'll join a special one-hour webinar, "Mid-Year Review: How New York Banks Stack Up" (See information below) next Thursday, August 19 at 10am ET. . .it will review key performance analysis and trends to see how New York community banks are stacking up halfway into 2021. # # # There was big news in Albany this week, with Governor Cuomo announcing his resignation effective effective August August 24, when Lt. Governor Kathy Hochul will become Governor. She addressed New Yorkers this afternoon, saying she will use the transition period to meet with current and potential cabinet officials, build out her senior staff, meet with legislative leaders and business and labor leaders and decide upon her choice for Lt. Governor. She said she and Cuomo "have not been close," and pledged a transparent administration; said no one named in unethical terms in the Attorney General's report would remain in her administration, and that she will carefully monitor developments on the pandemic/variant situation and consider possible state government actions if needed. She noted vaccination rates in New York are strong, with about 70%having received two doses and 77% one dose. https://www.cnbc.com/2021/08/11/kathy-hochul-vows-big-difference-from-cuomo-administration.html. Watch her remarks and follow-up q.and a. session here: https://www.nbcnewyork.com/news/politics/hochul-prepares-for-spotlight-as-cuomo-steps-aside/3214902/ Obviously these developments will have enormous consequences for state government and politics, with next year's legislative session and gubernatorial election clearly impacted. More on that in our Albany section below. . .And, of course, we also cover the latest from Washington as well. Stay safe and healthy! John

Lake Shore Savings Bank Converts to COCC for Advanced Technology SOUTHINGTON, CONN.— COCC is proud to announce that Lake Shore Savings Bank, headquartered in Dunkirk, N.Y., has converted to COCC as its core technology provider. COCC completed the conversion of the $706-million-asset bank in early August. The bank joined the Cooperative, becoming the latest community financial institution to utilize COCC’s INSIGHT core banking solution as well as COCC’s digital banking solution and additional financial technologies. Lake Shore chose COCC as its technology partner to empower its employees with leading edge technology to focus on delivering the best customer service possible. For Daniel Reininga, Chief Executive Officer and President at Lake Shore Savings Bank, the partnership with COCC will support the bank’s mission of putting people first. “This means helping customers, energizing employees, respecting shareholders, and serving our community. These are the same values we saw within COCC.” “We are excited to provide Lake Shore with our advanced, innovative technology to serve their customers” said Richard A. Leone, Chief Executive Officer at COCC. “Like COCC, Lake Shore Savings Bank values their customers and strives to give them the best service possible. Those shared values provide a great foundation for our partnership.” “With COCC as a strong foothold,” Mr. Reininga concluded, “we’ll be better able to compete with the larger banks in our area.”  About Lake Shore Savings Bank Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the mid-tier holding company of Lake Shore Savings Bank, a federally chartered, community-oriented financial institution headquartered in Dunkirk, N.Y. The Bank has 11 full-service branch locations in Western New York, including five in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. The Company’s common stock is traded on the NASDAQ Global Market as “LSBK.” To learn more, visit www.lakeshoresavings.com. About COCC COCC is an award-winning client-owned financial technology company servicing financial institutions throughout the Northeastern United States. Launched in 1967, COCC was founded by its clients. This unique cooperative structure has set COCC apart from the competition and is one of the driving forces behind their success. COCC is recognized as a leader in delivering innovation and the quality service financial institutions demand and deserve. View this press release on our website here.

IBANYS MEETINGS

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IBANYS "Come Back Celebration" Executive Fall Meeting September 13-14, 2021 We are calling this The Come Back Celebration for good reason. It’s been 18 months since IBANYS had our community banks together in one place. During this time, we have seen community banks lead the way in supporting their customers, small businesses and most importantly their communities through a difficult time. All of you have significantly changed or adjusted your business model to accommodate the pandemic. This meeting is to celebrate you, your team and all the people you have supported in your community. We will cover a number of topics that will look at business before, during and the effect on banks and what to expect next. All C-level suite, Senior Management and Bank Boards are welcome.  Please join us for the Come Back Celebration.

MEET THE SPEAKERS

Keynote Speaker: Stephen A. Ingalls ("Steve"), President & CEO, Catalyzer The Post-Pandemic, Evolving Workforce and How You Should be Leading Them Stephen A. Ingalls joined the organization in 2010, later served as its President from 2011 to 2015, and now leads the team as its President and CEO. In addition to his strategic leadership, Mr. Ingalls leads curriculum development, program management, and oversees program execution, often facilitating engagements.   Prior to joining Catalyzer, Mr. Ingalls led and directed operations ranging from climate research in Antarctica and Greenland to attack helicopter deployments throughout the United States, Europe, and Korea. A 1982 graduate of the United States Military Academy at West Point, Lieutenant Colonel (Retired) Ingalls holds a Master of Science in Engineering Management from the University of Kansas, a Master of Military Art and Science from the United States Army Command and General Staff College at Fort Leavenworth, and a Master of Science in Aerospace Engineering from the Georgia Institute of Technology. He is a former Instructor and Assistant Professor of Aerospace Engineering at West Point and an Instructor of Tactics at the Command and General Staff College.   Highlights of his 22-year Army career include: facilitating the Army’s analog-to-digital transition in the late-1990s; the distinction of being the first brigade-level aviation operations officer in the Army’s history to lead a 4,400-soldier brigade combat team to a major deployment at the National Training Center in Fort Irwin, California; serving as a Longbow Apache Battalion Commander – responsible to form, field, train, and lead the fourth AH64D-equipped organization and first to deploy outside of the United States; and developing a 15-year strategic plan for over 30,000 Army forces throughout Korea to address Army transformation through 2015.   He won a NASA-American Society of Engineering Educators Fellowship to Johnson Manned Spaceflight Center in the summer of 1994, where he analyzed next-generation space shuttle designs. In 2010, Mr. Ingalls was admitted into Sigma Gamma Tau, the National Honor Society in Aerospace Engineering, and he received his certification as a Project Management Professional (PMP) from the Project Management Institute in 2011.   Leaving active duty in 2004, Mr. Ingalls transitioned his uniformed experience to business, supporting manufacturing and project management functions at a Kansas City-based architectural millwork firm, serving as the Associate Director for Administration at a National Science Foundation research center on climate change, and finally working for multiple federal contracting organizations as a Program Manager and Director of Business Development before assuming a full-time role at Catalyzer in late-2017. Today, his greatest joys are his marriage to Cara, mentoring his children into adulthood, and serving gleefully as Elijah’s, Adalynn’s, and Silas’ grandfather.

Keith Ash Senior Vice President Business Development, Strategic Resource Management 2021 Top Payment Trends for a Post Pandemic Recover Keith Ash has 25 years of payments expertise across issuer, network, and processor roles. Ash began his career with Household Bank, supporting the launch and growth effort of the GM Co-brand through Household Credit Services. He later joined First Data/Concord EFS where he was the SVP of Operations and Implementations for their Northeast Platform. Keith then worked for MasterCard for 14 years, where he gained extensive experience in roles ranging from Account Management to Sales, supporting regulated and unregulated issuers. His prior role at MasterCard was leading the New Business team for Community Financial Institutions. Keith joined SRM to expand the company’s payments acumen and will focus on serving regulated issuers

Upstate New York: Post Covid Market Perspective Gerald D. Verdi, President of Verdi Planning Company Mr. Verdi has worked in banking, finance, technology and strategic planning positions for over thirty-five years. He is a graduate of the State University of New York at Buffalo (B.A.) and the Pennsylvania State University (M.S.).

Bruce Paul, Managing Director Banking Customer Research Team, Rivel, Inc. The Pandemic Impact on Customer Loyalty Across New York, for You and Your Competitors Bruce Paul leads the Banking Customer Research team at Rivel Inc and founded the New York Banking Benchmarks (and 23 other States). He previously was the Global Head of Financial Services Research at the Nielsen Company and the US Head of Customer Experience Research at Greenwich Associates. He has spent the last 3 decades focused on banking customer behavior and has designed the brand tracking and customer experience programs at 7 of the top 15 North American banks and dozens of smaller institutions. A former Fulbright Scholar, Bruce has degrees in Political Economy, Cantonese, and Asian Studies from Yale-in-China (CUHK) and UC Berkeley.

Cannabis — An Emerging Market

Corey Massella, Managing Director UHY, LLC Corey has over 25 years of experience as an entrepreneur, tax and business advisor, and as a specialist in SEC accounting and audit services. Additionally, Corey has experience serving as a Private Equity and Technology Industry Group Practice Leader for a top 20 accounting firm.   Corey has successfully guided his clients through all facets of the mergers and acquisitions transaction cycle to help them make critical decisions while ensuring transactions are strategic and seamless. In 2015, He was selected as the winner of the SmartCEO award for Industry CPA Leader in New York. Corey has completed over 300 M&A transactions and was the lead partner at the firm awarded M&A Advisor’s Accounting/Due Diligence Firm of the Year award in 2017 as well as being nominated as Dealmaker of the Year by ACG New York and M&A Advisor.  Matthew VanDerbeck, Managing Director UHY, LLC Matthew VanDerbeck has more than two decades of experience in accounting and auditing, with extensive experience in the non-profit, governmental and privately held for-profit industries. While working for a Big Four accounting firm for 10 years, Matthew was able to further develop his experience working on larger non-profit entities (including colleges and universities, private schools, unions, governmental entities and other non-profits), non-public and public for-profit entities.   Matthew formerly headed the quality control practice for an accounting firm and served on the New York State Peer Review Committee.

Will Your Bank Emerge Stronger When the Liquidity Surge Recedes? Reece McKenszie, Director, New York Territory, IntraFi Network, LLC Reece joined IntraFi in March 2020 and is the Managing Director for the New York territory. Prior to joining IntraFi, Reece spent 29 years in the banking industry starting at HSBC where he held positions in Treasury Management, Branch management and Product manager for Liquidity. Upon his return to western NY in 2003, Reece held positions in commercial lending, commercial depository services and treasury management for a few local community banks in the Rochester region.

Data Infused Marketing

Lou Costello, Director of Sales Spectrum Reach Over 20 years in the Marketing/Advertising Industry.

Michael Schuler,Director of Market Research and Insights Spectrum Reach  Over 15 years Conducting Market Research and Implementing Marketing Strategies.

Ben Collins, Account Executive at Spectrum Reach  Bachelors in Marketing and Over 10 years Conducting Data infused Marketing Campaigns.

MEET THE SPONSORS

The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services. ICBA Securities Corporation (ICBA Securities) a subsidiary of the ICBA (Independent Community Bankers of America) that was founded in 1989 following two years of intensive research by ICBA's Bank Services Committee. Based on the proposals submitted and lengthy interviews, the Committee selected Vining Sparks to serve as ICBA Securities' exclusively endorsed broker.   As ICBA Securities is owned by the nation’s largest trade association for community banks, it has a commitment to return all of its profits to the industry, in the form of royalties, sponsorships, or dividends. Through 2020, it had reinvested over $48 million back into its supporting state/regional partners or into the ICBA that it has received from Vining Sparks. Six of the seven ICBA Securities board directors are influential community bankers.   We are also proud be to the endorsed broker-dealer for over 30 community bank state associations. Slippery slope Another yield curve shift has community bankers guessing. By Jim Reber Click here to read article

IBANYS Preferred Partner T. Gschwender & Associates, Inc. is a diversified consulting company that has been providing services to financial institutions and businesses in the Northeast United States since 1984. Our financial institutional clients include small community banks and credit unions with less than $100 million in assets to much larger regional institutions with over $5 billion in assets. Our business clients include small sole proprietorships to middle-market privately held corporations.   For our financial institutional clients, we like to describe ourselves as a highly sophisticated "Credit Department," able to handle all functions from initial borrower due diligence to collateral liquidation, and everything in between. Our goal is to provide these services in a timely and cost effective manner, allowing our clients to tap into resources they would not otherwise be able to employ internally.   For our business clients, we provide Accounting/Bookkeeping, Business Advisory, Business Valuations, and Tax Services. We also leverage on our numerous banking clients to assist businesses obtain loans at a reasonable rate. Whether you are a new business, growing rapidly, or experiencing some challenges, our Associates can help!   Our Consultants all have extensive banking and corporate management experience. Some of our Associates have been with us since the company was started, and our current staff provides a wide depth of experience, having held high level positions within banking, accounting, and regulatory institutions. With expertise spanning "both sides of the street", the company's Associates provide a well balanced and thorough approach to all that we do.   T. Gschwender & Associates, Inc. is a privately held company that was started by Tom Gschwender on November 9, 1984 and purchased by Bharpur "Bo" Singh on April 1, 2008. IBANYS Preferred Partner About Pentegra   Unparalleled Governance Founded by the Federal Home Loan Bank System in 1943, we do not answer to shareholders, we answer to our clients. Our boards of directors are made up of our clients, Presidents and CEOs, who use our services and place their own futures in our hands. Our Boards serve with excellence and the highest ethical standards and set the very same ones for our organization.   Unmatched Fiduciary Protection With a legacy built serving as an institutional fiduciary, Pentegra offers a level of fiduciary protection that is unmatched in the industry. We deliver an unrivaled level of oversight and accept a higher level of responsibility. Our fiduciary heritage shapes our culture.   No Conflicts of Interest We are not a “Wall Street” firm, or owned by a larger financial services organization, mutual fund or insurance company. As an independent organization, governed by our clients, our focus is to enhance the value of our clients. We partner with firms as a trusted resource to bring an objective perspective and maximum flexibility to every opportunity—to deliver the very best solution for clients.   Client-driven Culture We were founded by our clients, are owned by our clients, and governed by our clients – simply, we exist for our clients. When we say we are “client driven,” it is not an empty marketing tagline, it’s our DNA. Our solutions begin and end with each client’s real life needs, objectives and goals. Today, we have more than 100 clients who have been with us for over 30 years and maintain a 98% client retention rate.   Deep Expertise and Bench Strength Our team is comprised of highly-skilled professionals—ERISA attorneys, Enrolled Actuaries, Certified Plan Consultants and specialists in investments, education and compliance. The advantage—access to multiple experts guided by a relationship management team that eases the way for you. Comprehensive Solutions Whether you are a financial advisor seeking a fiduciary outsourcing retirement solution for your clients, a client seeking a benefits financing solution to fund an executive benefit plan, or an institutional investor looking for help with your balance sheet, our structure and collaborative culture enable us to align our full resources behind your needs. We deftly draw on our collective resources and team of highly skilled professionals to create exceptional client solutions.

The Federal Home Loan Bank of New York (FHLBNY) helps community lenders in New Jersey, New York, Puerto Rico and the U.S. Virgin Islands advance housing and community growth. The FHLBNY is part of the congressionally chartered, nationwide Federal Home Loan Bank System, which was created in 1932 to provide a flexible credit liquidity source for member community lenders engaged in home mortgage and neighborhood lending. The FHLBNY increases the availability of mortgages and home finance to families of all income levels by offering high-value correspondent and cash management services to assist our members in more effectively serving their neighborhoods and meeting their Community Reinvestment Act responsibilities. Our Mission The mission of the Federal Home Loan Bank of New York is to advance housing opportunity and local community development by supporting members in serving their markets. The FHLBNY meets our mission by providing our members with access to economical wholesale credit and assistance through our credit products, mortgage finance program, housing and community lending programs, and correspondent services to increase the availability of home finance to families of all incomes. Our Core Values Our Core Values formalize the principles that have long reflected our culture and guided our decision-making: Focus on members Foster a collaborative and responsive work environment Support diversity and inclusion in a respectful manner across our business Uphold our integrity and promote accountability Be results-oriented and mindful of our risk profile ROOSEVELT & CROSS AT A GLANCE Entirely employee-owned and directed The firm is structured into underwriting, trading, sales, public finance, project finance, and research departments 100% of our firm’s capital is committed to municipal securities Top ranking municipal bond underwriter in New York, New Jersey, and New England Co-senior manager and co-manager on major issues throughout the country Consistently ranked #1 underwriter of education bonds in New York Leading underwriter of short-term financings in New York Quantitative expertise in structuring and executing complicated financial transactions Strong distribution capabilities across major and mid-size institutional accounts, professionally managed retail accounts, and high net worth individual accounts The main office is located in New York City with branch offices in Buffalo (N.Y.), West Hartford (C.T.), East Greenwich (R.I.), Boston (M.A.), and Warren (N.J.)

PROFESSIONAL CONSULTING SERVICES TO BANKERS BY BANKERS The CEIS Review mission is to be the preeminent provider of independent outsourced loan review, loan portfolio stress testing, ALLL methodology validation or refinement, as well as being a provider of related commercial credit management techniques to financial institutions worldwide. Our commitment is to commercial banks, savings banks, credit unions, foreign branches and agencies, multinational organizations and other firms requiring a third party assessment of loan portfolio quality and process. Our commitment to excellence includes delivering clear & concise reporting, utilizing cutting edge credit and portfolio management techniques, maintaining an objective viewpoint, providing adequate flexibility to clients needs and consistently staying ahead of emerging industry and regulatory matters. Ultimately, we are dedicated to our client’s success and growth. Moving businesses upward, outward and onward   Sometimes, the audacious is worth pursuing. For more than 65 years, Pursuit, formerly known as New York Business Development Corporation, The 504 Company and Excelsior Growth Fund, has offered innovative lending solutions to help business owners in NY, NJ and PA follow their dreams.

Founded in 1978 and led by active and engaged problem solvers, we bring a unique passion and approach to our work. For 40 years and counting, we have been listening to our clients and partnering with them to create solutions that address their financial and business challenges.   This dedication has not only contributed to our growth, but has led us to become a Top 50 National Accounting firm. Grow your business with the best content, insights, products & people. No matter who you need to reach, we’re here to help you connect. Work with a local advertising expert or create your campaign online.

The Baker Group has been a trusted financial partner helping community financial institutions improve their decision-making, interest rate risk management, and investment portfolio performance since 1979.    Today, The Baker Group is one of the largest independently owned securities firms. After decades of industry service, they continue to grow and adapt in order to better serve their financial partners. Onovative, an automated marketing and communication software provider, put controls back in the hands of bank marketers. Onovative’s affordable marketing software for planning, automation and execution empowers you to manage data for strategizing throughout the consumer lifecycle and engage with consumers through multiple channels. With software that integrates directly with your existing core banking systems, Onovative helps banks drive results by bolstering growth with their current account holders and within their markets.

Serving clients is our fundamental purpose   As a leading investment bank, we enable growth and success for our clients through deep sector expertise, candid advice and a differentiated, highly productive culture.   OUR VALUES   We create and implement superior financial solutions for our clients. Serving clients is our fundamental purpose. We earn our clients’ trust by delivering the best guidance and service. Great people working together as a team are our competitive advantage.   As we serve, we are committed to these core values: Always place our clients’ interests first. Conduct ourselves with integrity and treat others with respect. Work in partnership with our clients and each other. Maintain a high quality environment that attracts, retains and develops the best people. Contribute our talents and resources to serve the communities in which we live and work. Since 2001, Bankers Healthcare Group (BHG) has been an industry-leading financing partner of healthcare practitioners and other highly-skilled professionals, providing over $7 billion in working capital loans to tens of thousands of borrowers. Leveraging nearly 20 years’ worth of historical borrower data, BHG only targets high-earning borrowers and top-tier credit profiles. These loans are then packaged and sold to community banks throughout the country who make up the BHG Bank Network– with 1,190+ having trusted in this program for nearly two decades. Banks have access to quality medical and professional loans through the BHG Loan Hub, a secure, state-of-the-art delivery platform with a variety of purchase options. Banks can quickly analyze complete, compliant credit files, and make informed purchasing decisions easily, with consistent loan packages. By joining the BHG Bank Network, members have the opportunity to invest their excess liquidity in these loans, strengthening and diversifying their portfolio.

At Wolf, we leverage over 100 years of experience to address the business challenges of today. Our innovative public accounting, risk management, and consulting services provide unparalleled guidance to organizations of all sizes across industries, regions, and the globe. We work with you as a trusted partner and expert, building strong relationships for lasting success.   Our culture of innovation and respect extends to each of our offices and employees. From impactful development opportunities and philanthropic events, to a generous benefits package and work-life balance, our inclusive atmosphere empowers employees to grow, exceed goals, and give back. Since 1998, Main Street, Inc. has partnered with more than 2,100 financial institutions to enhance account holder relationships with affordable, simple and efficient checking programs. By focusing on serving community banks and credit unions, we uniquely understand the needs and values of community financial institutions. Whether it’s to improve service to account holders, streamline team’s workload or boost profitability, we are here to help you achieve your goals. We deliver cost-effective, straightforward check products at competitive prices coupled with a seamless level of service. Our check program is easy to manage and leaves out the hidden fees you’ll find in other programs. In 2017, Main Street recognized a common need from both our new and longtime customers – to enhance growth with current account holders and within the markets our financial institutions serve. Our team of marketing experts expanded our offerings to include simple, turnkey, data-driven marketing solutions to save cost and time. This ultimately led us to join forces with Onovative, an automated marketing software provider, to further enhance our marketing services. In 2020, we officially added Onovative to the Main Street family. Onovative has been serving community banks and credit unions with affordable marketing software for planning, automation and execution since 2012. From data management, to consumer lifecycle strategy, to consumer engagement, Onovative’s customized marketing and communication software integrates with existing core banking systems to help financial institutions achieve their targeted goals. Learn more at onovative.com.

Going on the Boat Tour? What you will see....

Boldt Castle At the turn-of-the-century, George C. Boldt, millionaire proprietor of the world famous Waldorf Astoria Hotel in New York City, set out to build a full size rhineland castle in Alexandria Bay, on picturesque Heart Island. The grandiose structure was to be a display of his love for his wife, Louise. learn more here

Yacht House The Boldt’s family yachts and enormous houseboat were housed here in the slips 128 feet long. Towering bay doors on the decorative facade provided access to the river. The building, rising 64 feet, also featured a shop to build racing launches and quarters for crew and staff. The grandeur of the Gilded Age is fully embodied in the structure’s shingle-style architecture, tremendous towers and spires and the steep-pitched gables. Learn more here

ASSOCIATE MEMBERS & PREFERRED PARTNERS

Click here to register Mid-Year Review: How New York Banks Stack Up Thursday, August 19 at 10am ET Duration: 1 hour Join this webinar as we review key performance analysis and trends to see how New York community banks are stacking up halfway into 2021. We’ll look at top performers in critical categories, so you can better assess your position relative to your peers and competition. We’ll look at both strengths and weaknesses, as well as the why and how behind your performance metrics. You’ll also learn how New York’s community banks compared to the rest of the nation’s. All analysis is based on publicly available performance data using a proprietary index of “true” community banks provided by QwickAnalytics®. Contact info@qwickrate.com for more information on the webinar or to request a demo of QwickAnalytics, including its CECLSolver™ tool. Attend and learn about simpler ways to manage your bank by the numbers!

CLO Teach-In with Piper Sandler August 12, 2021 | Conference Call & Webinar View this week's Balance Sheet Insights report here. You are invited The Collateralized Loan Obligation (CLO) market has seen strong and consistent growth in recent years and continues to present relative value in the world of fixed income. Please join Michael Piper and Mark Bowie for a discussion on understanding, underwriting, purchasing, and surveilling CLOs in the current market environment. This teach-in will include key information on regulatory and accounting considerations as well as policy considerations for depository institutions. Date and time Thursday, August 12, 2021 3:00 p.m. ET Registration Please register using the link below. You may also use this link to access the webinar on the day of the event. Register Now Add to Calendar Questions? Contact Heather Hofer at Heather.Hofer@psc.com. Visit PiperSandler.com © 2021 Piper Sandler Companies PiperSandler.com 7/21 800 Nicollet Mall, Suite 900, Minneapolis, Minnesota 55402-7020 USA Piper Sandler Companies (NYSE: PIPR) is a leading investment bank driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and NYSE; in Europe through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; and in Hong Kong through Piper Sandler Hong Kong Ltd., authorized and regulated by the Securities and Futures Commission. Private equity strategies and fixed income advisory services are offered through separately registered advisory affiliates. © 2020 Piper Sandler PiperSandler.com 7/20 800 Nicollet Mall, Suite 900, Minneapolis, MN 55402-7036 US

WELCOME TO OUR NEWEST MEMBER 

The pandemic has been tough on bank brands across NY, but a few actually managed to improve their brand image The most recent NY Banking Benchmarks show that 66% of all NY bank brands declined in awareness or consideration (or both) over the last 18 months. The steepest declines were among small to mid-size community banks and also credit unions. Larger banks weathered the storm better. Overall awareness and consideration fell steepest among households earning over $100,000 and among Baby Boomers. The banks that improved, or at least maintained, their brand image are currently seeing huge dividends as a record number of New Yorkers are currently switching banks. Some of the banks whose marketing teams have performed the best: New York Community Bank, Dime Community Bank, Bank of Holland, Jeff Bank, Ridgewood Savings, Cross County Savings. To see your local data: bpaul@rivel.com.

COMMERCIAL LOAN PORTFOLIO QUALITY TRENDS, 1Q21 Having the privilege to meet the Loan Review & Stress Testing needs of over 130+ Institutions, CEIS Review is uniquely positioned to gain insights on market activity covering several geographical areas, portfolio profile types, and regulatory agencies’ concerns. After reviewing and analyzing the results of CEIS engagements over a quarterly period, we identify emerging trends among commercial loan portfolio behaviors, as well as any heightened concerns from Regulatory Agencies. Covered in This Release: Provisions for Credit Losses, Reserves and Net Charge Offs Loan Portfolio Quality Ratios CEIS ' - Borrower Financial Trends & Risk Grade Outlooks More notable Bank examiner concerns in 2021 CLICK HERE FOR FULL REPORT CEIS Review - Est. 1989, domestic and international commercial loan portfolio engagements. © 2021 CEIS Review, Inc. All Rights Reserved.

Cannabis Banking in New York: Practical Guidance Tuesday, September 28, 2021 2PM EST | 2 Hours   In March of 2021, New York became the 15th state to legalize adult-use cannabis — joining a growing number of states that have expanded from their initial medical-only programs. While retail sales aren’t expected to start until 2022, New York is predicted to become one of the nation’s largest markets in short order. To help financial institutions operating in New York to prepare for a new, multi-billion dollar industry, the Independent Bankers Association of New York State and Green Check Verified are hosting the complimentary webinar, “Cannabis Banking in New York: Practical Guidance,” on September 28 at 2pm (EST).  Taught by Green Check Verified subject matter experts, this three part educational event covers the following topics:   Session 1: The Fundamentals of Cannabis Banking (60 minutes) Essential terminology: cannabis/marijuana/hemp, THC/CBD Defining cannabis businesses and identifying their needs Federal and state cannabis law, guidance, and regulations FinCEN’s 2014 marijuana banking guidance: what you need to know Locating and onboarding cannabis businesses Ongoing monitoring and working with your examiner Session 2: Special Considerations in New York (30 Minutes) Every state’s legal cannabis market has its own particular challenges and opportunities, and New York is no different — especially given the potential size of the program. In this session, we explore where the New York market is headed based on comparable state programs, and what banks operating in the state need to know to safely and effectively work with this industry.   Session 3: Quantifying the Risks and Rewards (30 minutes) We’ll review a case study, based on an institution that’s currently banking cannabis in a state with a new adult-use program, and use that information to conduct both a financial modeling and risk assessment exercise. From the financial modeling exercise, you will learn to identify the products and services you can (and should) offer to cannabis businesses beyond simply accepting deposits, as well as what fees can be assessed. We’ll also review the primary costs associated with running a program. The risk assessment exercise will not only help you provide a point-in-time assessment of your readiness to bank the industry but also highlight the operational decisions that must be made when working with cannabis-related funds.   Session 3: Special Considerations in New York (30 Minutes) Every state’s legal cannabis market has its own particular challenges and opportunities, and New York is no different — especially given the potential size of the program. In this session, we explore where the New York market is headed based on comparable state programs, and what banks operating in the state need to know to safely and effectively work with this industry.    Takeaways Copies of all presentation materials A cannabis banking policy template A copy of the sample financial model developed during the session A copy of the sample risk assessment developed during the session 90-day access to a recording of both sessions Audience Board members CEO CFO Compliance and risk officers Branch operations managers Business development teams Click here to register

News from ICBA

REGISTRATION NOW OPEN Leadership is a lifestyle! The ICBA LEAD FWD Summit is back for its ninth year and is your ticket to becoming the best leader you can be. Register Here

Slippery slope Another yield curve shift has community bankers guessing. By Jim Reber And now for something completely different. Except it’s not; it just hasn’t been around for a number of years. But it most assuredly has an impact on your community bank’s bond portfolio and on the securities you’ll be thinking about purchasing the next time you’re in the market.  Click here to read article

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

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Albany Update

Three-term Governor Andrew Cuomo announced yesterday he will resign in 14 days. Lt. Governor Kathy Hochul, a western New York Democrat, is preparing to assume the office of Governor and will serve the balance of Cuomo’s term through 2022. It is not yet clear whether she will seek election next year to a full term of her own. She will become the first woman Governor of New York, and the first Governor from Upstate New York in a century. A Buffalo native, she served four years as Erie County Clerk and two years in Congress before her election as Lt. Governor in 2014. Hochul faces significant challenges, including leading the state out of the pandemic, continuing the recovery efforts, preparing a state budget and legislative agenda and staffing an administration. https://www.politico.com/states/new-york/city-hall/story/2021/08/10/kathy-hochul-new-yorks-next-governor-1389784?nname=new-york-playbook&nid=0000014f-1646-d88f-a1cf-5f46b74f0000&nrid=00000152-f737-dcf0-a7d7-f73fb7700001&nlid=630317  Andrew Cuomo's resignation, paving the way for Lt. Gov. Kathy Hochul to become governor, raises many questions about process, continuity of key government duties and filling of key positions in Albany. Here’s a look at just some of the immediate issues in the process. https://buffalonews.com/news/state-and-regional/govt-and-politics/q-a-how-will-the-transition-to-hochul-administration-work/article_81abac78-fa16-11eb-8992-6f45075222dd.html IBANYS will be monitoring closely as the future Hochul administration begins to take shape. There will likely be a number of changes in key personnel, and we will reach out to the new Governor and her key team members to ensure that there is a firm understanding and appreciation of the vital role community banks play in local communities throughout New York in terms of and small business lending, both during the pandemic and every day throughout the years. State Senate Majority Leader Andrea Stewart-Cousins (D-Yonkers) will become Lieutenant Governor, making New York the only state in the nation to have two women in the two top leadership positions. Her office issued the following clarification: “After Kathy Hochul becomes Governor, Senator Andrea Stewart-Cousins will remain the Majority Leader of the New York State Senate but will also take on the duties of Lieutenant Governor, until the time when the Governor appoints a new Lieutenant Governor.” It is still unclear whether the State Assembly will continue its impeachment probe. Criminal investigations of the Governor also still loom. A LOOK BACK AT ANDREW CUOMO’s four-decade political career. . .AND A TIMELINE of his downfall. Cuomo's legacy is clouded by this final chapter. . .Read More It appears there will be a wide open governor’s race next year — here's a cheat sheet on potential contenders-- and many observers expect brand new names to be thrown into the post-resignation shuffle. Read More. . .Cuomo's exit could kickoff musical chairs in New York's political world. IBANYS will be scheduling a follow-up session of our Government Relations Committee to continue the process of identifying and refining proactive issues for our 2022 New York State community banking legislative and regulatory agenda.

Washington Update

The House is not in session, but will return Aug. 23. The Senate gaveled out at 5:56 a.m. and will have pro formas only until Monday, Sept. 13. Senate blocks amendment to stop IRS monitoring on party-line vote The Senate voted down an ICBA-advocated amendment that would have barred the IRS from using funds in a pending spending bill to monitor bank customers’ financial transactions. Amendment: The amendment from Sen. Mike Crapo (R-Idaho) would have effectively blocked an ICBA-opposed proposal that would require financial institutions to report to the IRS on the deposits and withdrawals of all business and personal accounts with more than $600. In a letter and national news release, ICBA urged senators to support the amendment, though it failed to advance on a 49-50 party-line vote. Speaking on the Senate floor, Crapo said he opposes the indiscriminate monitoring of law-abiding Americans’ sensitive financial information and thanked ICBA for its efforts to advance the amendment. The Senate began taking up amendments to the $3.5 trillion budget bill after voting to send a $1 trillion bipartisan infrastructure bill to the House. Democrats are working to pass the budget bill with “reconciliation” instructions that would allow a broader legislative package—which could include the IRS reporting plan and other ICBA-opposed provisions—to pass without Republican support.   The Senate actions are the beginning of battle on the proposed spending plan provisions. ICBA continues encouraging community bankers to use its Be Heard grassroots action center to urge opposition to the IRS reporting proposal and to express opposition in district meetings during the August recess. ICBA urges grassroots meetings during August recess With Congress breaking this week for the August recess, ICBA is encouraging community bankers to arrange in-district meetings. Resources: To set up and conduct meetings, community bankers can access: A list of congressional schedulers. A list of district town hall meetings. An ICBA toolkit to help set up meetings. Tips to help community bankers tell their story  Community bankers should contact ICBA’s John Coleman at john.coleman@icba.org for assistance and to report meetings.