November 11 – Veteran’s Day



Veteran's Day is the day we thank all veterans for their service. On behalf of IBANYS staff, we thank all those who have served and/or are still serving. 

A reminder: IBANYS Human Resource Meeting (Via Zoom) will be held Tuesday, December 6. Please see detailed information in the meeting section below.

We also wanted to note this “American Banker” article citing a new Federal Reserve survey that noted during the third quarter, “the industry braced for a potential recession by making it harder for borrowers to access credit… Bankers indicated that they are ready to take stronger action in a downturn that many of them now see as likely. Read story

Some news from the U.S. Small Business Administration Upstate New York District -- which approved over $200 million in 524 traditional loans to small businesses in 34 counties across Upstate New York in FY2022, a year-over-year increase of 52 traditional loans from FY2021. Consistent with an agency-wide priority to approve smaller dollar loans for more small businesses, approved SBA 7(a) loans in the Upstate New York District decreased in total amount and average loan size but increased by 29 loans from FY21 to FY22. In FY2022, SBA approved these loan amounts in the Upstate New York District. For assistance in finding SBA lenders, creating business plans, and more, entrepreneurs in Upstate New York can get free business counseling from SBA Resource Partners, including Small Business Development Centers, SCORE Mentors, WISE Women’s Business Center, and the Veteran Business Outreach Center. To learn more about SBA’s traditional loan programs, visit www.sba.gov/funding-programs/loans. 

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

Banks listed below are the Top Ten performers within IBANYS over the last year. These banks have the strongest improvement in Awareness and Consideration among prospects (non-customers) from Q3 2021 to Q3 2022, within the Association. The results are based on 26,831 objective interviews with New York households across the state, part of Rivel's biannual Banking Research.

For more information on your standing, please contact Dailey Betz. dbetz@rivel.com

MEMBER BANKS

IBANYS congratulates Phil Pecora and Genesee Regional Bank

GRB was named to the Greater Rochester Chamber of Commerce Top 100 list for 2022.

GRB is pleased to announce it was named no. 49 on the Greater Rochester Chamber of Commerce “2022 Top 100” list. GRB is the only bank on the Top 100 list.

To be eligible for the Top 100, businesses must be privately held, headquartered in the nine-county Rochester region, and have earned at least $1 million in revenue in each of the three most recent fiscal years. The Top 100 is computed based on revenue growth, taking into account both dollar and percentage growth.

The full list can be found on the Chamber’s website. (page 21 in the issue flip book)

Congratulations to our Member Banks that made the list

RBJ’s Power 30 Banking & Finance 2022

By: Rochester Business Journal Staff October 21, 2022

The Rochester Business Journal’s Power List program continues this week with our 2022 Power 30 Banking & Finance.

The list includes individuals who spend their careers helping members of the Rochester community navigate increasingly ever-changing financial circumstances.

The people on this list have helped Rochester’s banking and finance industry navigate two-plus years of COVID-related uncertainty, significant supply chain and labor disruptions, and now rapid increases in interest and inflation rates. They have kept their clients apprised of new rules and regulations, financing options, investment opportunities and more. They have pushed innovation forward to deal with myriad challenges and have led the way through a period of tremendous uncertainty.

As with our previous Power Lists, this one is presented in alphabetical order. And again, rather than tell you about all of these power players’ accomplishments and accolades, we decided to give them a chance to tell you more about themselves through their answers to a few different questions.

I welcome any feedback you have at bjacobs@bridgetowermedia.com.

Ben Jacobs

Associate Publisher and Editor

Power 30 Banking & Finance 2022

Marty Birmingham

Five Star Bank

Frank Hamlin

Canandaigua National Bank

John McKenna

Tompkins Bank of Castile

David J. Nasca

Evans Bank

Phil Pecora

Genesee Regional Bank

Kathleen R. Whelehan

The Upstate National Bank

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

BY JAY L. HACK, PARTNER

BANKING & FINANCIAL INSTITUTIONS

Federal Preemption of State Consumer Laws – Reports of Its Demise at the Hands of Dodd Frank Are Premature

When Dodd Frank was adopted in 2010, a political trade off resulted in the inclusion of a provision defining when national banks could benefit from federal preemption of state consumer laws. Many commentators then predicted the demise of federal preemption, which allowed national banks to ignore many restrictive state consumer protection laws.

Dodd Frank limited federal preemption to only three circumstances:

1.    If a state law discriminates against national banks;

2.    If state law prevents or significantly interferes with the exercise by a national bank of its powers; or

3.    If state law is preempted by a provision of Federal law

Discrimination against national banks (#1) was...

Read the Article

QwickRate is honored to once again share the most recent quarter's community bank performance trends in an upcoming Webinar

Q3 Performance Results: Facing Uncertainties

Tuesday, November 15 at 2:00-2:45 pm ET 

The only certainty right now is uncertainty. What's around the corner? Soft landing? Recession? Shallow or deep? The results so far are good, but the outlook's unclear. Join QwickRate and QwickAnalytics experts as they analyze and discuss how community banks performed in Q3 revealing peer metrics and identifying caution signs about uncertainties ahead. Register today.

Click to register

presents

SENIOR LENDER SUMMIT 2022

Who it's for:

•  Community Bank Presidents

•  Senior Credit Officers

• Commercial Portfolio Managers

• Loan Administration/review Managers

Senior Bankers responsible for lending functions

Register Now

It's time for our 2022 Balance Sheet Strategy Seminar! Join us in person for an update on the dynamic challenges and opportunities for depositories in this historic rate environment. Scott Hildenbrand and the Piper Sandler financial strategies group will discuss navigating TCE/OCI, liquidity, funding and hedging opportunities, policy management, strategies for the investment portfolio, weaponizing the ALCO process, and the broader economy’s impact on the competitive landscape. Additional highlights will include guest speakers and panelists, as well as updates on M&A and capital markets.

Date and location

Monday, December 5, 2022

Hilton Midtown

1335 Avenue of the Americas | New York, NY 10019

*Piper Sandler is not arranging travel or overnight accommodations for attendees.*

Register Now

Add to Calendar

View The Agenda



Questions? Contact Marg Duffy at marg.duffy@psc.com.

We hope you’ll join us for our Annual Financial Institutions Webinar Series, Tuesday, November 29, and Tuesday, December 6. During this complimentary event, industry experts will discuss emerging issues, impacts, insights, & More. Fully-customize your experience by choosing which sessions you would like to attend! Register for each session separately.

Choose from seven sessions to fully-customize your experience and earn CPE. All sessions are led by industry experts who will be discussing emerging issues, impacts, and insights ranging from CECL, internal fraud, cybersecurity, along with the current state of the economy and its impact on the industry, to mortgage lending profitability & more!

When: Tuesday, November 29, and Tuesday, December 6, 2022. Various session times.

Cost: FREE!

Registration, session information and CPE details can be found here: https://www.bonadio.com/industries-served/fit-annual-seminar

Each session offers 1 (one) credit of CPE; details on registration page.

2023 PLANNING - CEIS' SEASONED CREDIT EXPERTS TO HELP YOU ADAPT AND THRIVE

The current business environment has forced everyone to re-evaluate policies, practices, and procedures across the board. Once thought to be impossible, our new normal is pushing many to rebuild internal practices. Community banks are at the forefront, trying to meet the demands of their clients while securing the strength and capacity of the institution at the same time.

At CEIS, we have the same goal—meeting the demands of our clients by providing tools to assist in securing the strength and capacity of the institution. Through our Loan Review (“LR”) and Stress Testing (“ST”) engagements, we provide independent evaluations, yielding actionable information for Senior Management and the Board to make informed decisions.

In evaluating your 2023 needs, ask yourself:

• Does my loan review & stress testing programs take into account today’s unique post- pandemic-related stress factors into their respective approaches?
• Do I receive reporting in a timely manner, thus enabling me to make informed actionable portfolio decisions? 
• Do my programs incorporate leading industry best practices?   
• Does my stress testing program utilize multiple scenarios? Does it consider the impact on provisioning, losses, and capital?
• Are the results of your stress test being used in your ALLL or CECL reserve calculations?

CEIS' Loan Review & Portfolio Stress Testing services are administered by seasoned Credit Professionals incorporating industry best practices while ensuring regulatory satisfaction.



Contact CEIS Review today to start the conversation regarding your Institution's 2023 Commercial Credit consulting needs.  

Election Update

(For the latest updates for the state Legislature.)

Gubernatorial& Statewide Races

• Rep. Lee Zeldin (R-L.I.) conceded the gubernatorial race to Gov. Hochul Wednesday afternoon, 13 hours after The Associated Press called the race. “I would like to congratulate Governor Hochul on her election to a full four-year term. . .This race was a once-in-a-generation campaign, with a very close margin in the bluest of blue states. . .Those controlling Albany should take note.”  Rep. Zeldin says the results on Tuesday are something for the party to build on for the future.  Progressives are breathing a sigh of relief in New York after Gov. Hochul's unusually competitive race. Come January, Democrats will still have a firm grip on power in Albany, with control of every statewide office. Gov. Hochul, Senator Schumer, Lt. Gov. Delgado, Attorney General James and Comptroller DiNapoili all won reelection handily.   Read More.  .  . Check out City & State’s latest updated results for the governor’s race and other statewide races, Congress and for the state Legislature.

• While Democrats won statewide in New York, extending their existing electoral dominance, Republicans can point to successes down ballot.  Read More.  

• With Election Day over, there are a number of outstanding issues facing state government, its economy and its political leadership in Albany. With most of the races settled across the state, the new political landscape is different than the one in the 2021 – 2022 session. Here are four burning questions facing New York.  Read More  . . .New Yorkers overwhelmingly voted to pass the Environmental Bond Act.  Read More

New York Congressional Delegation Races

• The New York Congressional Delegation will have a number of new faces come January. IBANYS will be reaching out to them -- and to all the members, both new and returning -- to inform and remind them of the vitally important role New York community banks play in the economy and social fabric of their districts and the state. We also encourage you to do the same with your local members of Congress and the State Legislature. As of today, it appears Republicans will hold ten of the 26 seats (the state lost one seat in redistricting), while Democrats will hold 16. 

• As Democrats sought to keep their narrow House majority, they counted on New York as a crucial bulwark but it became a significant drag on their chances, The New York Times reports.  The likely Republican majority in the House (although not yet official) came in large part through the state, as the GOP made gains in a number of swing districts, flipping four seats previously held by Democrats -- getting them closer to the net five seat gain they need nationally to win back the House. Read more here.  Congressional races decided on Wednesday handed win after win to Republicans. On Long Island, it’s a GOP sweep of four congressional seats — two staying in Republican hands, and two flips. The seats now held by departing Reps. Tom Suozzi and Kathleen Rice were won by Republicans George Santos and Anthony D’Esposito, respectively. The GOP took control of four House seats on Long Island for the first time since 1994, Newsday reports. . .In the Hudson Valley, Republican Marc Molinaro flipped another Democratic seat.  The only win for Democrats among the state’s most contested seats  was in NY-18, where Republican Colin Schmitt conceded to Rep. Pat Ryan. (Although that race still has not been officially called.) . . .  In Central New York, Republican Brandon Williams has a narrow lead over Democrat Francis Conole for the seat being vacated by retiring Republican Rep. John Katko in the Syracuse area.

State Legislative Races

• Come January, Democrats will still have a firm grip on power in Albany in both the Senate and Assembly. Democrats in both chambers entered the morning after Election Day well-positioned to retain sizable majorities, though seven races appear likely to determine just how big they are. State Senate Democrats have declared victory in 40 of the 63 state Senate seats -- and were holding out hopes in two others, which would give them a bare supermajority of 42 members, one short of the record-breaking 43 they won in 2020. State Assembly Democrats appear to have clinched in at least 100 seats in the 150-member chamber, the exact amount needed for a supermajority, and five additional races remained close. Assembly Democrats won either 106 or 107 Assembly races in every election over the past decade.  Republicans flipped three New York State Senate seats on Long Island.   Assembly Democrats likely to keep a slim supermajority, while Senate's supermajority down to 2 races 

Other News From New York State

• Legalized online sports betting has been a major financial boost to New York State, which has collected over $740 million in revenue since the industry was “green-lit in January. Governor Hochul announced New York collected $542 million in taxes from online betting, along with over $200 million in licensing fees since the beginning of the year.” New York State collects $740 million in taxes from online sports betting.  

• The New York State Department of Financial Services issued its Proposed Second Amendment to Cybersecurity Regulation, 23 NYCRR Part 500. Please see a full description below.

• Federal Reserve Bank of New York President John Williams welcomed the relative stability of longer-term inflation expectations on Wednesday while signaling some puzzlement over data showing a notable number of Americans expect an outright decline in price pressures at some point. Fed's Williams flags relative stability of longer run inflation expectations

• The New York Fed also issued a report on the Phase I results of Project Cedar, a multiphase research effort to develop a technical framework for a theoretical wholesale—as opposed to retail—central bank digital currency. (ICBA opposes the creation of a U.S. CBDC, arguing that it would disintermediate community banks and pose privacy risks without improving on superior payment alternatives, such as FedNow. ICBA in September released polling conducted by Morning Consult indicating consumers support a regulatory framework for digital assets and are skeptical of the creation of a U.S. central bank digital currency.)

Date: November 9, 2022

To: All Individuals and Entities Regulated by the New York State Department of Financial Services (DFS) and Other Interested Parties

Re: Proposed Second Amendment to Part 500

On November 9, 2022, the Proposed Second Amendment to DFS's Cybersecurity Regulation, 23 NYCRR Part 500 (Proposed Second Amendment) was published in the New York State Register. This begins the 60-day comment period. Information about the Proposed Second Amendment is available on the DFS website.

Comments must be submitted in writing to DFS by 5 pm EST on Monday, January 9, 2023. Submissions should be sent by email to cyberamendment@dfs.ny.gov or by mail to the New York State Department of Financial Services c/o Cybersecurity Division, Attn: Joanne Berman, 1 State Street, Floor 19, New York, NY, 10004. No special form is required.

The notice and comment process was integral to shaping the requirements of DFS's original Cybersecurity Regulation and helped ensure the success and durability of that regulation as promulgated. We appreciate the time you spend writing and submitting comments and look forward to considering them.

This letter is being sent to the primary contact at all entities overseen by DFS. To opt-in to receive additional notifications and important information related to cybersecurity for New York financial services companies, or to provide colleagues or other interested parties the option of also receiving cyber-related notifications, use our Quick Subscribe page to sign-up.



Thank you,

The Cybersecurity Division of DFS

ICBA's National Election Analysis -- Impact On Community Banks

• ICBA released an analysis of the 2022 midterm elections and their impact on community banks. ICBA’s 2022 Election Analysis provides an overview of the election results, the outlook for the lame-duck session, the likely leadership of the 118th Congress, and what's next on the policy front as ICBA continues to advocate on behalf of the nation’s community banks.  In a national news release Wednesday, ICBA President & CEO Rebeca Romero Rainey congratulated the election winners. “We look forward to continuing our work with policymakers to support community banks, promote local economic growth, and keep credit flowing to consumers and small businesses in local communities nationwide.”  As undecided races are decided in the coming days and weeks, ICBA will continue to update its analysis and keep community bankers apprised of the latest developments.

• President Biden delivered a midterm postmortem yesterday, declaring it a “good day for democracy and, I think, a good day for America, Politico reports.

Other News From The Nation's Capital

• Sen. Warren (D-MA) sent letters to Wells Fargo and Early Warning Services—parent company of the Zelle peer-to-peer payment platform—criticizing their response to her recent report on P2P fraud. Warren wrote in her letters that Zelle scams are disproportionately high at Wells Fargo and that the bank has not adequately responded to her previous requests for data on how it reimburses users who authorize fraudulent transactions on the platform.  Warren recently issued a report calling on the CFPB to strengthen Reg E to require banks to reimburse customers duped into authorizing payments to scammers. ICBA said regulatory restrictions are not the answer to addressing scammers who use P2P services. In a national news release on the report, ICBA said: 1) Community banks are outraged by increasingly sophisticated fraud and follow strict electronic funds transfer regulations;  2) While more than 99.9% of Zelle transactions have no reports of scams, Zelle and the largest banks can take measures to improve consumer awareness and fraud protections; 3) Regulatory restrictions will never keep up with the pace of evolving fraud and will only disrupt banking services; 4)Unlimited liability for P2P fraud under Reg E would have a disproportionate impact on community banks; 5) Policymakers should focus more on combating fraud by working with P2P technology vendors to maximize consumer awareness and implement safeguards. The Reg E debate has grown amid the rising incidence of P2P fraud, with the CFPB expected to require banks to reimburse customers who authorized fraudulent transactions, which likely would raise legal challenges.

• ICBA continues urging community bankers to speak out against a bill to expand on the Durbin Amendment as lawmakers seek to advance the measure during the lame-duck session. Sens. Durbin (D-Ill.) and Marshall (R-Kan.) are working to attach their Credit Card Competition Act of 2022 (H.R. 8874/S. 4674) to must-pass defense and appropriations legislation—the key remaining legislative vehicles of 2022.  The Credit Card Competition Act would require banks with over $100 billion in assets to offer merchants at least two networks to process credit cards, at least one of which cannot be owned by Visa or Mastercard. ICBA has repeatedly told lawmakers the bill would impose new costs on consumers and community banks, pose security risks, and end credit card rewards programs solely to bolster big-box retailers’ profits.  Community bankers can use ICBA’s Be Heard grassroots action center to rally opposition in Congress. Additionally, the Electronic Payments Coalition—of which ICBA is a member—offers a “Hands Off My Rewards” campaign with resources encouraging consumers to weigh in against the legislation.

• Inflation stayed high but showed signs of slowing in October. The consumer price index increased 0.4% for the month and 7.7% from a year ago, both lower than estimates. Excluding volatile food and energy costs, so-called core CPI increased 0.3% for the month and 6.3% on an annual basis, also lower than expectations.  Officials at the Fed have made clear that they need to see months of encouraging data to get a sense of how the economy is evolving. The latest data may mark a shift, but they’ll want to see it continue,” Rachel Siegel reports.

• Republicans were closing in on a narrow House majority while control of the U.S. Senate hinged on a series of tight races in a midterm election that defied expectations of sweeping conservative victories driven by frustration over inflation, The Associated Press reports.  The hotly contested U.S. Senate contest in Georgia will advance to a runoff between Democratic Sen. Raphael Warnock and Republican challenger Herschel Walker on Dec. 6,  CNN reports. North Carolina Republican Pat McHenry --  likely the next chair of the House Financial Services Committee -- promised constituents he would go after "woke corporations" in Washington. . . Meanwhile, House Democrats will reportedly wait until November 30 to hold leadership elections as they await a decision from House Speaker Pelosi (D-Calif.) on her political future following the recent attack on her husband, Paul Pelosi, by an apparent right-wing agitator. Punchbowl News