March 29, 2023

IBANYS Weekly E-Newsletter
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PRESIDENT'S MESSAGE

To all NYS Community Banks:


Needless to say, it has been an interesting 2 weeks – not in the banking industry but for NCAA March Madness and the bracket busters that have taken place!


OK – just kidding, the last two weeks have been a little tumultuous within the banking industry but only because there was no clarity in differentiating between large banks and community banks. When there are approximately 4,700 banks in the country and 2 in the top 30 experience trouble, we cannot classify them “small banks” when there are still approximately 4,698 banks left!


Community banks are the backbone of this industry and will continue to be for a long time. I have spoken to a number of our member banks and community banks across the country and there have been no real consequences from the shutting down of SVB and Signature Bank.


In this newsletter, you will find a toolkit from our national partner ICBA to customize a letter to your clients, if needed. Many of you have been proactive in contacting your clients and reassuring them they are safe with your bank. That is perfect but of you need assistance please use the toolkit.


ICBA has been a fantastic partner to IBANYS and other state associations but more importantly, they have taken the lead in advocating for all community banks in the US! I don’t believe you can have a better partner and leadership team on your side than what ICBA does and what Rebeca Romero Rainey has done since she has taken the lead at ICBA!


Now on to more important topics at IBANYS -our upcoming events!


Please register for the following events:


APRIL 17 -18 – Virtual event for all community bankers who are COMMITTED TO OUR COMMUNITIES!

  • PAY ONE PRICE FOR ALL EMPLOYEES TO ATTEND THIS 2 DAY EVENT
  • REGISTER HERE  FOR ALL ATTENDEES FROM YOUR BANK


May 14-17 – Capital Summit in Washington DC – Registration link for ICBA – we need your support to speak to congress


June 12-14 – IBANYS Annual Convention at The Turning Stone Resort and Casino – – Attendee ONLY Register here Exhibitor Register Here


June 21st – A day with Jack Hubbard - 50 years of Building Relationships – Register here


Hope everyone will join our events and support our business partners and IBANYS!!


Regards,


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

"Committed to our Communities" Spring Virtual Conference April 17-18

8:30 – 2:45 each day


It is Springtime and there is no better time to bring a group of bankers together virtually to hear from SME’s (Subject Matter Experts) on topics that impact community banks and help community banks! 

 

IBANYS is partnering with KPN Consulting to host a virtual 2-day conference for community bankers in NYS! Here are the details for your bank to register and hear from a great group of speakers: 

1.    Each bank PAYS ONE PRICE for all employees to attend sessions they find relevant to their role within the bank 

2.    Bank employees can earn CPE credits but they must register and provide their email address, so they receive a specific link to the meeting 

3.    Registration excel spreadsheets are available so it will be easy to transfer the information to IBANYS 

4.    Register and send your banks list to Linda Gregware at lindag@ibanys.net 

 

This is a great opportunity to have all of your employees earn additional CPE credits but also hear from experts on the:

1.    economy,  

2.    partnering with fintech’s,  

3.    innovation and technology in branch design,  

4.    managing your investment portfolio and interest rate environment during a challenging economy,  

5.    BSA/AML,  

6.    understanding bank survey data and 

7.    community investment to fight climate risk, and much more!  

 

THIS IS THE BEST VALUE FOR THE BANK AND I HOPE YOU WILL TAKE ADVANTAGE OF THIS OPPORTUNITY TO HEAR THESE SPEAKERS DISCUSS TIMELY TOPICS THAT IMPACT COMMUNITY BANKS! 

 

Please call with any questions. We hope to see you VIRTUALLY on April 17th and 18th!! 

 

AS ALWAYS, WE APPRECIATE YOUR SUPPORT OF IBANYS!!! 

 https://ibanys.net/meetings-schedule/.

A block of rooms have been reserved at the Turning tone Resort & Casino. Reservations can be made by contact the Turning Stone Resort at (800) 771-7711. Refer to group: IBANYS Convention.

 

Tower King/Double – Rate $199. Tower Junior Suites – Rate $279 (single/double occupancy) plus applicable taxes and surcharges. Check in 3 p.m., check out 11:00 a.m.

 

You will only receive the room rate if you call-in to secure your overnight accommodations. If you reserve your room online, you will not receive the IBANYS room rate.

IBANYS 47th Annual Convention

 

While we are putting the final touches to full detailed convention brochure which will include the meeting agenda, we are providing you an opportunity to register to attend in advance. Click here for the registration form. Here is a sneak peek of some of the events & speakers:

 

Monday, June 12 –

  • Bring your golf bag and shoes and join us on Kaluhyat Course for a round of golf – shotgun start at 11:00 a.m.
  •  Vendor Appreciation evening – Cocktail reception on the tradeshow floor

 

Tuesday, June 13

Educational Sessions – sneak peek at some of our speakers

  • Jim Reber – ICBA Securities/Stifel
  • Michael Jamesson – Jamesson & Associates
  • Federal Home Loan Bank of New York
  • BHG Financial
  • Gary Hoy

Evening Events:

  • Silent Auction – Tradeshow Floor
  • Dueling Piano Show – following dinner

 

Wednesday, June 14

  • Educational Sessions
  • Convention Adjourns

 

More detailed information is coming soon. Register today!! We look forward to seeing you in June.

 

Early booth and sponsorship registration information: Click Here

 


ASSOCIATE & PREFERRED PARTNERS

The Competitive Advantage for Community Banks


The benefits of FinTech are clear: financial institutions that adopt digital technologies could increase their annual revenue by nearly 4%. If you want to understand and respond to your customers’ needs, digital technologies help you do it faster, cheaper and more conveniently than ever before.

 

Read more

Digital Transformation in Banking: Why it's Time to Adapt

 

42% of bank executives say that they are not sure how to integrate and streamline mid-, back- and front-office functions effectively, and 46% say they are unsure how to embrace open banking, orchestrate the ecosystem or become a truly data-driven organization.

 

Read more

Register today!

Live Webinar

Thursday, April 13 | 1:00 pm ET

 

Future-Proof Your Community Bank:

Transformation Strategies That Work

 

Banks need to embrace digital innovation — not just to remain competitive, but to survive. Digital transformation is no easy lift and partnering with FinTechs can be complicated. By leveraging the experiences of four industry experts, each representing a critical piece of this process, the wildly open-ended concept of "bank innovation" becomes easier to navigate.

Sit in on this masterfully crafted panel to get a 360-degree view of what successful digital transformation can look like at your community bank.

ICBA INFORMATION
Click here to register

ICBA’s 2023 Capital Summit in Washington, D.C. will feature remarks by OCC Comptroller Hsu, FDIC Director Gruenberg, CFPB Director Chopra, Treasury Assistant Secretary/Financial Institutions Steele, senior representatives from the Fed, and Senate Banking Committee member Rounds (R-SD). . . Register here.  NOTE: IBANYS will coordinate meetings "on the hill" with members of the New York congressional delegation. We have New Yorkers on a number of key House committees, as well as

9 new members of the delegation since we gathered last spring. Watch for more details.

The Bond Academy is designed to provide community bank professionals with basic knowledge needed to help plan and create effective fixed income investment portfolios.

The customized curriculum was developed to deepen and reinforce the understanding of basic fixed income investment products and portfolio management principles, while also demonstrating how a portfolio can complement the rest of a bank’s balance sheet.

In learning the essentials of fixed income investing, bond pricing, valuation, and selection will be covered extensively.

Who Should Attend?

The Bond Academy is ideal for financial professionals interested in deepening their knowledge of fixed income asset classes and basic investment strategies. CEOs, CFOs, investment managers, directors, as well as new directors serving on investment or asset-liability committees will also find this coursework beneficial.

You Will Learn:

  • Bond basics, including bond pricing, duration, and price volatility
  • Bond types, including agencies, municipals, mortgage securities, and floating rate instruments
  • The composition of a high performing portfolio
  • How to understand the rate market: yield curves, spreads, monetary policy
  • How economic data affects the bond market
  • The impact of interest rate risk on portfolio management
  • Portfolio strategies of laddering, barbells, riding the yield curve
  • Day-to-day portfolio management techniques
  • Evaluating investment portfolio performance

Schedule:

Monday – 4/17

Sessions: 8:00 am - 5:00 pm – Cocktail reception immediately following.

Tuesday – 4/18

Sessions: 8:00 am - 12:00 pm

Detailed Agenda to follow.

Hotel Information:

Embassy Suites by Hilton

1022 South Shady Grove Road | Memphis, TN

Book Your Room

Costs/Person:

Members: $595

Nonmembers: $695

Members & Nonmembers: Save $150/session per additional registration from your bank.

CPE Credit:

Earn up to 12 credits

Prerequisites:

Basic knowledge and understanding of the financial markets.

Additional Information:

– Field of Study: Specialized Knowledge, Economics

– Advanced Preparation: None

– Program Level: Intermediate

– Delivery Method: Group-Live

Questions:

(901) 762-5312

fixedincomeevents@stifel.com


ICBA Securities is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, through www.learningmarket.org.

For more information regarding individual site administrative policies such as complaints and refunds (if applicable), please contact Hugh Shackelford at (901) 762-5312. No advanced preparation is required for this course. Potential for up to 12 hours credit may be awarded for verified attendance at this group-live seminar. The course level for the Bond Academy is intermediate.

ALBANY UPDATE

Legislative Update

 

  • Here and here are the latest legislative updates from Albany. They will also be posted on our IBANYS website under the "Advocacy/Legislative Updates" tab.

 

  • The push by a number of Democratic legislators -- including Senate Banks Chairman Sanders (D-Queens) -- and consumer advocate groups continues in Albany, and poses a significant challenge to community banks. In a letter to State Senate Majority Leader Stewart-Cousins (D-Yonkers) and Assembly Speaker Heastie (D-Bronx), a coalition of organizations supporting public banking in New York State pointed to the recent failures of Silicon Valley Bank and Signature Bank as an impetus for the passage of legislation to achieve their objective: "The New York Public Banking Act creates a safe and appropriate regulatory framework for public banks – financial institutions created by local governments and chartered to serve the public interest. Passing the bill this session will demonstrate the legislature’s commitment to addressing inequities in our financial system and economy while helping to promote stability in New York’s banking sector."

 

Latest State Budget Updates

 

  • It’s the busiest time of year in the state Capitol; legislators and Hochul continue to negotiate details of the state budget that could end up being well over $200 billion, as the Governor seeks to put a “personal stamp” on this budget.  Read More.  The Governor appears  ready to dig in on her budget priorities, including on some items pretty far off from where downstate progressives who form a large chunk of the NYS Legislature would like to see the state’s agenda headed. Hochul can still shape budget negotiations ahead of the April 1 start of the fiscal year. Major legislative proposals are often included into the state budget, so winning support for her agenda will be her highest priority as discussions continue -- likely in April if a deal isn’t reached in the next few days. Some Democrats said it’s important that the party find common ground heading into 2024, when all 26 House seats and 213 state legislative seats will be on the ballot again.  https://www.politico.com/news/2023/03/28/new-york-budget-battle-hochul-democrats-00089163.   Meanwhile, State Senate Republicans criticized the escalating spending in New York's budget.  Read More

 

  • The Governor's proposed budget could impact New York community banks in several ways: DFS regulations on overdraft & NSF; Increasing the Linked Deposit Program’s (LDP) statutory cap from $2 to $6 million; Amending the distribution of surplus proceeds in tax enforcement proceedings; and, indexing the minimum wage to inflation. The proposed LDP increases include lifetime allowance and maximum loan amount; both are currently at $2 million. For more details, see HERE and in the budget briefing book  HERE . . .A full set of 2024 Executive Budget documents can be found  HERE.

 

  • Legislators and the Governor’s office are working to figure out how to reshape New York’s housing system in the few days that remain before the April 1 budget deadline.  State Senate Finance Committee Chair Liz Krueger thinks there’s an easier way: Skip it for now.  Crain’s New York Business reports.

 

  • The “tax-the-wealthy” debate is heating up with the state budget deadline looming. Democratic lawmakers and progressive advocates have ideas for what billions of additional dollars from taxing wealthy can do for the state.  Read More. State Lawmakers and Gov. Kathy Hochul are at odds over whether to raise those taxes in this year’s budget.

 

  • With the budget deadline approaching, tenant advocates are doubling down on their push for “good cause” eviction in a new letter to state leaders A group of 104 building owners and landlords from across the state penned a letter to Hochul and legislative leaders backing “good cause” eviction and calling for it to be passed as part of the budget process, the Daily News reports.

 

 

Political Perspective

 

 

  • The new Siena Poll found also Gov. Hochul with a 43-43% favorability rating, down from 46-43% in February. Her job approval rating stands at 52-41%, from 56-40% in February. Senator Gillibrand had 46-25% favorability rating, up from 43-36%. 43% would vote to re-elect her if she seeks another term next year; 38% would prefer someone else. Senate Majority Leader Schumer’s favorability rating was 54-36%, up from 48-45% in February. Three-quarters of Democrats view him favorably; three-quarters of Republicans view him unfavorably, and independents are evenly divided, 44-44%. President Biden’s favorability rating in the state is 48-45%, down from 54-43% last month, and his job approval rating is 50-48%, down from 55-42% in February. By a margin of 48-39% voters believe the state is headed in the wrong direction, and by 57-33% they think the country is too. https://scri.siena.edu/2023/03/27/overwhelming-support-for-millionaires-tax-strong-support-for-banning-flavored-tobacco-strong-opposition-to-suny-tuition-hikes/

 

  • A federal court lifted an injunction that prevented state regulators from issuing licenses for cannabis sales in multiple regions of New York state. Meanwhile, Cannabis growers and sellers involved in every level of New York’s fledgling retail marijuana industry gathered at the state Capitol to rally for stricter enforcement on “thousands” of unregulated pot sellers,  the Times Union reports.

 

  • According to county-by-county numbers released Tuesday by the State Department of Labor, New York City's unemployment rate continued to lead the state in February, Read More

 

WASHINGTON UPDATE

Aftermath Of SVB/Signature Failures: Differentiating Community Banks

 

  • ICBA continues its ongoing media push to spread the word that community banks remain safe, sound, and secure in the wake of instability at larger institutions, appearing on Fox Business’s The Big Money Show,”   Yahoo Finance,  CNBC, MarketWatch, and elsewhere.  ICBA President and CEO Rebeca Romero Rainey appeared on C-SPAN’s  “Washington Journal”  to discuss the implications of recent bank failures and ICBA’s opposition to roping community bank into the policy response. ICBA also appeared on NPR’s Up First”,  saying community banks shouldn’t have to shoulder the cost of insuring larger and riskier financial institutions.  As developments unfold, ICBA will continue educating the public, policymakers, and the press about the stability of community banks while opposing any efforts to rope the industry into the policy response to recent bank closures.

 

  • ICBA is offering community bankers a new customizable op-ed to help differentiate community banks from larger and riskier financial institutions --  while regulators testified before Congress on the failures of Silicon Valley Bank and Signature Bank of New York.  Community bankers can update the custom op-ed—available on ICBA’s “Tell Your Story” Toolkit — for their institutions and communities. It also includes sample language to “pitch” the op-ed to your local publications.  

 

  • House Financial Services Committee Republicans  issued letters to regulators seeking information on the events leading up to and following the failures of Silicon Valley Bank and Signature Bank of New York. Details: Committee and subcommittee leaders sent letters to the Federal Reserve Board, Federal Reserve Bank of San Francisco, Financial Stability Oversight Council Chair Janet Yellen, and California and New York state regulators seeking information and communications related to the failures.  Hearings: The Senate Banking Committee has a hearing scheduled for tomorrow on the regulatory response, followed by a House Financial Services Committee  hearing  on Wednesday.

 

  • The impact of recent developments on community banks was a key subject of Tuesday’s Senate Banking Committee  hearing.  Several senators distinguished community banks from larger entities, expressed concerns with the potential impact of a special assessment on community banks, and called for a community bank exemption from the cost of backstopping uninsured deposits.  FDIC Chairman Gruenberg said the FDIC will issue a proposed rulemaking on the special assessment in May. He said while federal law requires any cost to the DIF for covering uninsured deposits to be paid by assessments on the banking industry, the FDIC has authority to consider the types of entities that benefit from any action taken or assistance provided. “I’m suggesting we have some discretion there and are going to consider that issue carefully.”  Federal Reserve Vice Chair for Supervision Barr testified the Fed is studying the potential need to change capital and liquidity rules for regional banks over $100 billion in assets as part of its review of the SVB failure, and noted the Fed has discretion to make rules changes to support safety and soundness.  Gruenberg, Barr, and Treasury Undersecretary for Domestic Finance Liang returned to Capitol Hill today for a House Financial Services Committee  hearing  on the recent bank failures.

 

  • The FDIC announced a purchase-and-assumption agreement with First-Citizens Bank & Trust Co. in Raleigh, N.C., for all deposits and loans of Silicon Valley Bridge Bank.  DIF Cost: The FDIC estimated the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund to be approximately $20 billion. The exact cost will be determined when the FDIC terminates the receivership. The FDIC said: 1) As of March 10, Silicon Valley Bridge Bank had approximately $167 billion in total assets and about $119 billion in total deposits.  2) The transaction included the purchase of about $72 billion of Silicon Valley Bridge Bank's assets at a discount of $16.5 billion. 3)  Approximately $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC.  4)  The FDIC received equity appreciation rights in First Citizens BancShares Inc. common stock with a potential value of up to $500 million.  5)  The FDIC and First-Citizens entered a loss-share transaction on the commercial loans it purchased to maximize recoveries and minimize disruptions for loan customers.

 

 

Legislative & Regulatory Developments

 

  • ICBA expressed support for three bills to mitigate the adverse impact of the Consumer Financial Protection Bureau’s pending rule implementing Section 1071 small-business reporting requirements. 1) The Small Lenders Exempt from New Data and Excessive Reporting Act, introduced by Rep. French Hill (R-Ark.), would expand community bank and small-business exemptions and extend the rule’s compliance deadline. 2) The Business Loan Privacy Act, introduced by Rep. Blaine Luetkemeyer (R-Mo.), would require the CFPB to conduct a rulemaking on proposed modifications and deletions to data the bureau will publish to protect the privacy of credit applicants. 3) The Preventing Racial Profiling in Lending Act, introduced by Rep. Roger Williams (R-Texas), would eliminate the rule’s requirement that loan officers guess the race or ethnicity of small-business credit applicants based on their last name and physical appearance. . .The CFPB plans to issue a 1071 final rule by March 31. The CFPB agreed to the deadline as part of a lawsuit designed to compel the bureau to finalize the rulemaking.  ICBA continues advocating relief from the bureau’s 1071 plan, in which the bureau is proposing to nearly double the number of reporting data points required by Congress. In an  American Banker op-ed  last year, ICBA said the CFPB should exercise its authority to tailor its rulemaking to avoid restricting access to credit.

 

  • ICBA and other groups called on congressional appropriators to support $500 million for the Community Development Financial Institutions Fund, including a $50 million allocation for the Bank Enterprise Award Program. The groups said the CDFI Fund request represents a necessary increase in funding over levels approved in the fiscal 2023 appropriations act and is justified by the significant demand and oversubscription of the programs. The Biden administration’s budget proposes $341 million for the CDFI Fund. In the joint letter, the groups said this is a modest increase that does not begin to meet the needs of the underserved communities it supports.

 

  • Two ICBA community bankers testified before Congress on ICBA’s push for the Consumer Financial Protection Bureau to delay issuing its Section 1071 final rule until the Supreme Court rules on the constitutionality of the bureau’s funding structure.

 

Update: Community Banks Advocacy & Priorities

 

  • Senate Banking Committee Chairman Brown (D-Ohio) and House Subcommittee on Financial Institutions Chairman Barr (R-Ky.) will address the  2023 ICBA Capital Summit  May 14-17 in Washington, D.C.  Community banks' advocacy on our federal policy priorities is more important than ever -- especially amid the policy response to recent failures of Silicon Valley Bank and Signature Bank of New York. The ICBA Capital Summit  is our opportunity to meet with key members of the New York congressional delegation. IBANYS will be coordinating these meetings.  Hotel blocks are open at the Renaissance Washington DC Downtown and the Grand Hyatt Washington, both walking distance to various attractions and dining options in the nation’s capital.  Learn more and register.

 

  • This  Independent Banker” podcast includes the community banking industry’s top advocacy priorities for 2023, recent advocacy successes, the 2023 outlook and the importance of community banker grassroots advocacy. New York community bankers can advocate for top industry policy priorities in direct messages to their congressional representatives – addressing regulatory oversight, climate risk rules, credit card routing mandates, the Small Business Administration’s 7(a) program, crypto oversight, and other key issues.  Use ICBA’s Be Heard grassroots action center to directly contact their members of Congress with policies that will support economic growth in local communities.