• Financial Risks from Climate Change — DFS’s Financial Risks from Climate Change guidance has been published to their website: Climate Change link for your convenience.

• IBANYS' Virtual Compliance Meeting is February 7th, 2023. The detailed agenda and registration information is located under IBANYS Meetings. 

•  ICBA’s 2023 Capital Summit-- and IBANYS’ meetings with New York congressional members -- will be held May 14 – 17, 2023. Please plan to join us in Washington to make your voices heard. More information will be coming out about this very soon. ICBA asks community bankers to complete its State of Advocacy survey to help identify new and existing community banker relationships with members of Congress and regulatory agency personnel. This 10-minute survey helps strengthen community banking advocacy in Washington, measure the awareness and effectiveness of advocacy efforts, and continue to drive positive policy outcomes. Please also cc your responses to  IBANYS: Johnw@ibanys.net and Stever@ibanys.net.    TAKE THE SURVEY

• An American Banker article earlier this week cited a new Risk Management Association survey that found that 84% of small lenders cite credit quality as a leading worry for 2023 because of the likelihood of a recession.  Read story

• The Federal Reserve Board on Tuesday announced the designation of the Chairs and Deputy Chairs of the 12 Federal Reserve Banks for 2023.  At the New York Fed, Vincent Alvarez, president, New York City Central Labor Council, AFL-CIO, New York, New York, was named Chairman, and .Rosa M. Gil, founder, president, and CEO of Comunilife, Inc., New York, New York, was named Deputy Chair.

• 4Front Credit Union in Traverse City, Michigan became the first credit union to announce a bank acquisition in 2023. It will buy Old Mission Bank in Sault Sainte Marie. There were 16 such acquisitions announced in 2022.  Read story. . .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. 

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

Once again, we are excited to have the IBANYS 2023 Compliance Update Virtual meeting on February 7, 2023. We have great speakers in addition to 3 regulatory agencies that will provide an overview of the important topics to focus on in 2023 as well share their expertise regarding issues that may impact community banks. Thinking in broad terms, the categories might be: 1. new initiatives from the agencies, 2. traditional safety & soundness and examinations, 3. consumer compliance issues & exams, 4. BSA/AML, 5. Vendor Management, etc. We are still in discussions with each agency and will provide an update as soon as possible. 

In addition to the regulatory agencies, subject experts from UHY,

Plante Moran & The Bonadio Group will share their knowledge and expertise on topics that will provide additional valuable material to our banks to during the IBANYS Compliance conference.

A more detailed meeting agenda and registration information is now

available. Please note attendees can earn up to 6 CPE credits.

Compliance Brochure D5

COCC Wins 2023 BIG Innovation Award

COCC builds trust with clients while shining as an innovative technology force with talented teams.

SOUTHINGTON, Conn. (January 11, 2023) – The Business Intelligence Group announced today that it has awarded COCC the 2023 BIG Innovation Award. This annual award program is judged by experienced business executives and experts to ultimately recognize only the most innovative organizations transforming industry standards.

The financial technology industry has faced rapid acceleration in a post-pandemic environment which advocated for self-service and increased flexibility. COCC is at the forefront providing innovation with customer-centric workflows and products that enable community banks and credit unions to surpass industry competition.

COCC’s proprietary and premier consumer loan origination solution, LoanWriter, reduces friction for the end-customer and the bank by offering a seamless experience from start to finish throughout the loan origination process. LoanWriter’s advanced integrated digital application and workflow fully supported the initial phase of PPP loans during unprecedented times. Dedicated teams within COCC worked quickly to design a digital self-service experience replicating all requirements for the Small Business Administration’s (SBA’s) forgiveness application for PPP loans. In an effort to minimize the impact on small businesses and their banking providers, these talented, driven teams ensured the application stayed up to date with changes issued by the SBA and made the workflow available to all clients at no additional cost. COCC continues to make significant strides leveraging their first-class technology, such as their high touch mobile and digital banking applications, to provide advanced customer experiences and end-to-end solutions that drive engagement and reshape the future of self service.

 “Innovation is ‘business critical’ in today’s society,” said Maria Jimenez, Chief Operating Officer of the Business Intelligence Group. “We are thrilled to be honoring COCC as they are leading by example and improving the lives of so many.”

About Business Intelligence Group

The Business Intelligence Group was founded with the mission of recognizing true talent and superior performance in the business world. Unlike other industry award programs, these programs are judged by business executives having experience and knowledge. The organization’s proprietary and unique scoring system selectively measures performance across multiple business domains and then rewards those companies whose achievements stand above those of their peers.

About COCC

COCC is one of the fastest-growing core financial technology companies in the United States and is recognized as a leader in delivering innovation. COCC provides the most comprehensive technology partnership in the industry, combining a collaborative approach with the most highly adopted, feature-rich, modern standards-based core banking solution available. Its integrated digital banking solution ensures that clients provide a valuable and intuitive user experience, coupled with personalization driven by advanced machine learning models. Through extensive in-house development and using APIs to streamline innovative fintech integrations, COCC clients leverage a complete suite of modern financial technology solutions. COCC has been client-owned for over 50 years, acting as a partner to clients with an unmatched focus on service to help community banks and credit unions meet their unique and ever-changing needs. To learn more, visit cocc.com. 

Fixed rate or floating?

Hybrid ARMs give an investor both features

By Jim Reber, ICBA Securities

What’s your choice for the term of the decade so far (that is, other than COVID)? In the last three years, a number of expressions have come

into fashion, some of which have been worn out, used out of context and deemed by linguists to be a blight on our vocabulary. I’m sorry to say these may be around for a while. Here are a few:

Click Here to Read

• Gov. Hochul yesterday delivered her State of the State address to a Joint Session of the State Legislature.  Here are five key takeaways. From the banking perspective, she proposed addressing additional overdraft and NSF fees she said are negatively  impacting low/moderate income New Yorkers. She called for an end to “opportunistic sequencing of transactions” and stressed the need to ensure clear disclosures and alerts of any permissible bank processing charges. The Governor also called for indexing minimum wages to inflation, proposing that once a region’s minimum wage reaches $15 an hour, it should increase consistent with the year-to-year Consumer Price Index – W for the Northeast region – which she called “the best measure of inflation for our area.” Annual increases would be capped (she did not provide details on what the cap would be) and an “off ramp” would be available under certain circumstances and conditions. If approved, New York would join 17 states that tie minimum wage to inflation. Read more:   https://subscriber.politicopro.com/article/2023/01/new-york-should-raise-minimum-wage-and-index-it-to-inflation-hochul-proposes-00077198?source=email.   

• Governor Hochul also pledged to not increase New York's personal income tax this year -- likely signaling a broader debate coming in the state budget.  Read More

• Both the New York State Senate and Assembly named committee chairs for the new legislative session. Senate Banks Chair James Sanders (D-Queens) retains his position. There is a new Banks Chair In the Assembly: Assemblywoman Pamela Hunter (D-Syracuse).  Meanwhile, there are 39 new legislators Albany:  Meet the newbies coming to town in 2023. And, here is this year's State Legislative session calendar: https://nyassembly.gov/leg/docs/session_2023_calendar.pdf. 

• The Governor had called housing a keystones of her 2023 agenda, having announced a plan to build 800,000 units of new housing over the next decade. Yesterday Hochul outlined a plan that relied heavily on easing regulatory restrictions and otherwise promoting development not just in New York City, but around the state, with new requirements for municipalities to meet. Housing advocates protested her proposals for failing to protect tenants and ensure affordable housing.  The New York Times reports. 

• State Senate Republicans  laid out their agenda for the year,  which focuses on cost of living, crime and population loss.  Read More.  Senate Republicans face a long road back to the majority to regain what had been their final lever of power in Albany. Senate Minority Leader Rob Ortt talked about the 2023 session.   Read More

• Provisions meant to strengthen protections against abuse in the foreclosure process are set to take effect after Gov. Kathy Hochul's approval of a law addressing a top court ruling lawmakers have argued weakened safeguards for consumers. The measure, initially approved by state lawmakers last year, was backed after a state Court of Appeals ruling that made it easier for lenders and mortgage servicers to halt the statute of limitations period during the foreclosure process. https://nystateofpolitics.com/state-of-politics/new-york/ny-state-of-politics/2023/01/06/protections-against-foreclosure-abuse-approved-by-hochul-   Here are three links below for you to read. One is a press release from Senator Sanders (D-Queens), the State Senate Banks Committee Chairman who was a sponsor this legislation. The other two are articles providing details on how the law may impact banks.

• ·https://dingo.telicon.com/NY/library/2023/2023010481.PDF

•  https://www.silive.com/news/2023/01/this-new-law-makes-it-harder-for-lenders-to-foreclose-on-new-york-homes.html

• National Mortgage Professional

• DFS Superintendent Harris released Guidance to banking organizations that wish to engage in virtual currency-related activities.  The Guidance is applicable to all New York regulated banking organizations, as well as branches and agencies of foreign banking organizations licensed by the Department. The Guidance is final; however, DFS looks forward to continuing to engage with key stakeholders on these important issues. As such, stakeholders are invited to provide comments on this Guidance to bankingcomments@dfs.ny.gov, which the Department will take into account as it continues to supplement and refine the supervisory framework applicable to Covered Institutions. A copy of the Guidance can be found on the DFS website  here.  To develop the Guidance, DFS conducted a robust analysis of the existing regulatory landscape and market trends, and engaged with consumer advocates, other state and federal regulators, industry, and academics. . . .And,  here’s a preview of some of the major issues they’ll be working on.

• The Supreme Court declined to hear an appeal from shareholders of Fannie Mae and Freddie Mac who sought to recoup dividend compensation they claim to have lost when the federal government took over the two firms amid the 2008 financial crisis and in a subsequent 2012 agreement, which saw hundreds of millions of dollars redirected to the U.S. Treasury. Reuters

• Consumer expectations for US inflation in one year's time declined slightly in the latest survey by the Federal Reserve Bank of New York.  In the short term, consumers are expecting inflation to decline from their previous outlook, while for the medium term their expectations are unchanged and for the long term, inflation expectations ticked up slightly, the New York Fed said Monday in its December 2022 Survey of Consumer Expectations. The median one-year-ahead inflation expectation slipped by 0.2 percentage point to 5.0% in December (its lowest reading since July 2021.)  For the three-year-ahead timeframe, the median inflation expectation was 3.0%. Median five-year-ahead inflation expectations rose by 0.1 pp to 2.4%.  Consumers appear to be slightly more optimistic about their earnings outlook, with the average one-year-ahead expected earnings growth rising 0.2 pp to 3.0%. The increase was most pronounced for respondents over the age of 60 and those with a high school education or less.  https://www.msn.com/en-us/money/markets/consumers-lower-expectations-for-inflation-in-the-year-ahead-new-york-fed-survey/ar-AA168GLr?mkt_tok=ODUwLVRBQS01MTEAAAGJOsRUYHjJP9-Mn3svYTs9-Kcr3FAKTzEJbuWL3Pq0a0g0AdMKFcFM6jtae7PyRZPRu9Ng9mlgPjzm1zths_rMhuJhKWPT2BrY79clFHSsNPoT

• Senate Majority Leader Schumer (D-NY) and House Democratic Leader Jeffries (D-Brooklyn) plan to use their roles to apply the lessons from Democrats losing three House seats in New York, while bolstering the state’s needs -- including new affordable housing initiatives and long-stalled infrastructure projects, Politico reports.

• Two New York Democratic congressmen filed an ethics complaint Tuesday against scandal-plagued Rep. George Santos (R-L.I.), urging the House Ethics Committee to investigate the newly sworn-in lawmaker.  House Republicans know they have a Santos problem, but don’t yet know how to deal with it. https://www.politico.com/news/2023/01/10/george-santos-house-republicans-00077249?nname=new-york-playbook&nid=0000014f-1646-d88f-a1cf-5f46b74f0000&nrid=00000152-f737-dcf0-a7d7-f73fb7700001&nlid=630317. . .Meanwhile, Nassau County (L.I.) GOP leaders (including County GOP Chair Cairo) today will reportedly call on Santos to resign for fabricating his biography to win his congressional seat, three people with knowledge of the plans told POLITICO. Read the latest. Plus: Who might be eyeing George Santos’ congressional seat? 

• Federal Reserve Chair Powell  said  the Fed has narrow responsibilities regarding climate-related financial risks, while broader climate policies should be made by elected officials.  Powell said the public reasonably expects bank supervisors to require that banks understand and appropriately manage their material risks, including climate-related risks. “But without explicit congressional legislation, it would be inappropriate for us to use our monetary policy or supervisory tools to promote a greener economy or to achieve other climate-based goals,” he said. “We are not, and will not be, a ‘climate policymaker.’”  

• ICBA has long maintained the financial system should not be used to choke off lawful but climate disfavored industries. It also strongly opposes climate risk regulation of community banks and has told policymakers that any trickle-down effect of large bank regulation in this area will stifle innovation and create barriers to serving consumers and small businesses.  In a recent national news release that was picked up by Politico Morning Money and American Banker, ICBA said the New York State Department of Financial Services and other regulators should reconsider their climate risk proposals and their adverse effects on local communities. ICBA has also expressed concerns with the FDIC, OCC, and SEC climate risk proposals.

• ICBA issued a news release calling on the Small Business Administration to maintain its long-standing moratorium on the number of non-federally regulated institutions that can make loans under its 7(a) program. Citing its recent comment letter and joint letters to the SBA and Congress, ICBA said the agency’s proposals to lift the moratorium on Small Business Lending Companies would undermine the program. The SBA should withdraw its proposals while focusing on the program’s successful community bank partnerships, ICBA said. “The Small Business Administration’s proposal to allow nonbank fintechs and other non-federally regulated institutions to participate in its successful 7(a) loan program could unintentionally harm the very borrowers the SBA is trying to aid as well as the program’s underwriting standards,” ICBA President and CEO Rebeca Romero Rainey said. The SBA’s proposed rules would: 1) Lift the SBLC moratorium, which has been in place since 1982, and 2)Loosen or remove the 7(a) program’s requirements for how lenders underwrite loans and how borrowers may use loan funds.  READ ICBA RELEASE

• Inflation remains far too high despite some recent encouraging signs, Federal Reserve Governor Lisa Cook said.  She cautioned against putting too much weight on recent inflation reports, noting the volatility of inflation over the past two years. Participants in last month’s Federal Open Market Committee meeting said a restrictive policy stance would be needed until inflation is on a sustained downward, which is “likely to take some time,” according to the minutes. Meanwhile, Federal Reserve Governor Michelle Bowman said the central bank has more work to do to curb inflation, noting that further interest-rate increases are needed and officials should hold them at restrictive levels for some time to stabilize prices. https://finance.yahoo.com/news/fed-bowman-says-more-rate-170000982.html?mkt_tok=ODUwLVRBQS01MTEAAAGJP_RcStlP1JCNR5LIIr1vy7K-4pzOzdENYMWDVOYzELb2wKwT_SZiVRH0zGMh3xC1FEAVnkS6Are5W1rXqqJmuJ0gN9OSolBAjxFt8yf56kVX The FOMC’s next meeting is scheduled for Jan. 31-Feb. 1. Bowman also urged regulators not to squeeze crypto activities into non-regulated spaces, and discussed policies for payments and CRA reform. Read story



• Treasury Secretary Janet Yellen has reportedly told President Biden she will remain in her position for the remainder of Biden’s first term. Ben White reports.

• Rep. Patrick McHenry (R-NC) is the new Chairman of the House Financial Services Committee. Former Chair Rep. Maxine Waters (D-CA) will serve as Ranking Member. Chairman McHenry announced the Republican members of the Committee, as recommended by House Republican Steering Committee, including  two New Yorkers: Rep. Andrew Garbarino (R-L.I.) and Mike Lawler (R-Lower Hudson Valley). Democratic members have not yet been announced.

• ICBA President & CEO Rebeca Romero Rainey recently wrote in a  message to community bankers that ICBA and community banks had a successful year in advocacy in 2022 -- including efforts on the Durbin Amendment, crypto policy, the credit union power grab, and regulators’ climate risk efforts.  Read more.