July 6, 2022
IBANYS Weekly E-Newsletter
President's Message


Here are a few Items of interest that I wanted to share with you.

  • The latest issue of the Federal Reserve’s Community Banking Connections praises the financial resilience and commitment of the nation's community banks in serving local communities throughout the pandemic.   "Today, as the economy continues to rebound from two years of fluctuations and unknowns, one thing is certain: Community banks continue to support their customers and advance the strength of their local economies," according to the article.  "As competition, mergers and acquisitions, regulatory burden, and margin compression threaten the future of the community banking business model, the need for it has never been clearer."    Read the issue. 

  • The FDIC and Federal Reserve Board   issued   the 2022 list of distressed or underserved nonmetropolitan middle-income geographies. These are geographic areas where revitalization or stabilization activities are eligible to receive CRA consideration under the community development definition.  For New York State, areas in Hamilton and Schuyler Counties are on the list.

  • The Consumer Financial Protection Bureau started accepting applications for the Community Bank Advisory Council and other committees on July 5. A new  CFPB blog post   details the types of applicants the agency is looking for and how to apply.

  • ICBA’s Independent Banker magazine has opened nominations for its   2022 Best Community Banks to Work For awards.  The December issue will celebrate community banks that create an unbeatable place for employees to build their careers.  Eligible community banks must   submit nominations   by 12:59 a.m. Wednesday, July 20.  Once nominated, full-time employees of each nominated bank will be asked to complete a comprehensive workplace survey in August.  Banks in five asset categories with the highest index scores will be selected as winners. Here’s how to Submit nominations. 

  • ICBA's Independent Banker magazine also announced in the July issue its rankings of the top community bank loan producers based on 2021 FDIC data. Several New York community banks are on the lists.  The 2022 list features agricultural, commercial, and consumer and mortgage lenders faced with both record-low interest rates and a glut of deposits.  The magazine is available on the Independent Banker   website   and via the   digital edition.
 
IBANYS MEETINGS
September 12-14, 2022
Executive Bank Symposium

LOCATION TO BE DETERMINED
ASSOCIATE & PREFERRED PARTNERS
Elder Abuse
written by Travelers
The attached features information on the issue of financial abuse targeting elderly citizens, along with best practices banks can take to help prevent these crimes from happening to customers.
Unrealized Losses Continue…
Communicate and Determine the Real Impact
July 18, 2022 | Webinar
 
 
You are invited
The second quarter of 2022 saw rates climb ever higher and the unrealized losses since Q1 are even greater. This comes at a time while investment portfolios continue to comprise a larger portion of the balance sheet. With all parts of the curve up 70-145 bps since 1Q, strategies and messaging remain in focus as investment portfolio marks put pressure on equity.
Join Scott Hildenbrand , head of Piper Sandler financial strategies, for the next installment of our continued virtual client outreach. Hildenbrand will review the framework for measuring and analyzing the risk on balance sheets, methods for internal and external communication about what the AFS mark means for institutions, and the strategic options available on- and off-balance sheet for mitigating the risk.
 
Date and location
Monday, July 18, 2022
3:00 p.m. ET 
 
 
 
Hosted by
The Piper Sandler Financial Strategies Group
 
Questions? Please contact Heather Hofer via email or at +1 212 466-8047.
 Aug 8-11, 2022                              Virtual/Live Training
  HR Management 2022
This workshop is designed to provide intensive training for employees in Human Resources Management.

TOPICS INCLUDE
  • Employee Recruitment, Selection, and Placement
  • Situational and Behavioral Interviewing
  • Driving Employee Engagement
  • Creating an Accountability Culture

AUDIENCE 
  • Human Resource Managers 
  • Branch Managers 
  • Department/Division Managers
  • Management/Hiring/Coaching/
  • Counseling Responsibilities
Instructor, Kerry Sauley, is the Marjorie B. Ourso Excellence in Teaching Professor at Rucks Department of Management, Louisiana State University, Baton Rouge, LA.

PRICE:
IN PERSON: $695
VIRTUAL (VIA ZOOM): $595
ICBA INFORMATION
Up with Coupons
Larger interest payments can build a floor under your bond prices
By Jim Reber, ICBA Securities
Jim focuses on how larger interest payments can build a floor under your bond prices, and suggests strategies that can improve life for community banks.
ALBANY UPDATE
  • In last week's “extraordinary session,” New York legislators approved a long-stalled proposal to enshrine abortion rights in the state constitution, making New York the latest state to pursue long-term protections in wake of the U.S. Supreme Court’s Roe v. Wade reversal. The proposal was modified to address critics’ concerns over potential effects on religious freedom and is the first major step in a multiyear process to amend New York’s constitution.   New York's abortion amendment clears first major hurdle. Gov. Hochul also signed legislation that will limit where people can carry guns in New York. The new law is in response to the U.S. Supreme Court ruling overturning the state's open carry restrictions, but it's not clear if the bill will withstand legal challenges.  New York lawmakers approve gun control legislation in special session after Supreme Court decisions


  • The City of Albany's ‘good-cause’ eviction law, the first of its kind in the state, was struck down Thursday in State Supreme Court -- a decision that may lead to the overturning of similar pieces of legislation across New York. Judge Christina Ryba ruled in favor of several landlords who argued the law violated state law that guided tenant-landlord relationships.

  • In a message to the ACAMS AML Risk Management & Securities Summit. State Financial Services Superintendent Adrienne Harris said DFS will issue new guidance on how its rules apply to nonfungible tokens (NFTs) and also recently issued guidelines on stablecoins  and blockchain analytics. Harris wants DFS to continue to be a leader in cryptocurrencies, remaining upbeat on virtual assets despite the industry’s turmoil. DFS has already issued more cryptocurrency-related licenses in 2022 than it did in all of 2021. She said the DFS  guidance on the issuance of U.S. dollar-backed stablecoins was a first for a financial regulator.     


  • As small retailers and new entrepreneurs make the move toward the sale of recreational marijuana, they are in limbo awaiting regulations from the state and preparing for the application process expected to begin sometime this summer, The Buffalo News reports.   The state Office of Cannabis Management has received 14 applications in one week from people who want to process cannabis flower, oils and products for New York’s first recreational marijuana sales, which are expected this fall,   State of Politics reports.

  • COVID cases in New York  are once again on the rise as a sub variant of omicron spreads.  New York's weekly tally of COVID-19 cases increased nearly 15% last week, as the omicron BA.5 subvariant fueled outbreaks on Long Island and in New York City. Upstate counties remained at low risk of infection and hospital strain. New York reported 41,642 new COVID-19 cases in the week ending Sunday, up from 36,317 cases the previous week. New York ranked 21st among the states where coronavirus was spreading the fastest on a per-person basis, according to an analysis of Johns Hopkins University data. . .The newest wave of COVID-19 infections and reinfections, fueled by more transmissible subvariants of the omicron strain including BA.4 and BA.5, continues to grow in New York City and across the U.S.  New York magazine reports
WASHINGTON UPDATE
  • The annual congressional summer recess in August is now just around the corner. In August, your local Members of Congress will be back home in the district. It's a great opportunity to re-connect with them, remind them of all your banks do for your communities, and discuss important federal legislative issues and priorities. Aaron Stetter (ICBA’s EVP of advocacy and strategic engagement -- and a Buffalo native) shares ideas and tips for making lasting personal connections with lawmakers to support top ICBA policy priorities in this month’s  Independent Banker magazine.  . .  Read more. 

  • ICBA’s third quarter   “Advocacy in Action”   government relations dashboard and recent   advocacy briefing   provide community banks with an update on ICBA’s advocacy successes, along with more information about our community bank-focused policy positions before Congress and the financial agencies. The briefings cover ICBA’s efforts on critical policy issues, including:  Leveling the playing field with credit unions;  Closing the industry company loophole, and  Addressing concerns with the FDIC’s climate risk management framework.

  • ICBA released a   member-protected fact sheet   that details the FDIC’s new, stricter approach to how banks treat single items repeatedly rejected for insufficient funds.  Some financial institutions charge multiple non-sufficient-funds fees for the same transaction when a merchant re-presents an ACH payment or check more than once after the transaction has been declined.  ICBA’s   fact sheet   for ICBA members details the FDIC’s comments on the issue and provides guidance to help community banks avoid examination penalties from the agency’s change in direction. 

  • The Fed is facing increasing demands from the U.S. Senate to revamp the process for granting master accounts, disclose more information to the public and pick more diverse leaders. making executive searches at the Kansas City and Chicago Fed banks more complicated.  Read story → 

  • Banks and payment companies may have to decide whether to proactively protect or prohibit transactions for abortion treatment. Any action — or inaction — can be seen as taking a position on the highly divisive issue. Read story →

  • Michael Hsu has been acting comptroller for about 14 months. Since President Biden’s choice to lead the agency withdrew from consideration late last year, the White House has not floated any new names for his potential successor. Read story →

  • The Federal Reserve’s aggressive rate hikes are leading corporate clients to demand higher deposit rates, according to industry consultants. Some banks are better positioned than others to weather the changing landscape.  Read story →


  • The Biden administration is considering a plan to lower mortgage costs for first-time and lower-income home buyers.  HUD officials are considering a cut to insurance loan premiums, though such a change could be weeks or months away. No proposal is pending before the White House's budget office for review, per a HUD official, and any potential cuts are likely to fall short of what the mortgage industry seeks.   The Wall Street Journal 

  • With the FDIC taking a new, stricter approach to how banks treat single items that are repeatedly rejected for insufficient funds, ICBA released a   member-protected fact sheet   on the issue with recommendations for reducing the risk of penalties.  Some financial institutions charge multiple non-sufficient-funds fees for the same transaction when a merchant re-presents an ACH payment or check more than once after the transaction has been declined. The FDIC said in its Spring 2022 Consumer Compliance Supervisory Highlights that it is increasingly scrutinizing these fees, with community banks reporting that the agency is now threatening or imposing violations even on banks that are compliant with fee disclosure requirements.  ICBA’s fact sheet   for ICBA members details the FDIC’s comments on the issue and provides guidance to help community banks avoid examination penalties from the agency’s change in direction.    Access the guide.