IBANYS Weekly E-Newsletter |
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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
This week, final congressional approval is expected of President Biden’s $1.9 trillion “American Rescue Plan covid-19 relief and economic recovery package. We cover the details in today’s newsletter – including what it may mean for New York.
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In Albany, we are approaching the April 1 state budget deadline – with a big infusion of federal funding assistance on the way, proposals for new taxes under consideration – and a state legislature emboldened as it deals with Governor Cuomo trying to cope with dual crises that appear to have weakened his position. We have more information on the Albany situation as well. There's also some activity in the State Assembly on a bill to allow credit unions to participate in the state's Linked Deposit Program. IBANYS is monitoring closely and preparing our opposition.
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. . .And today, New York community banks celebrate the election of one of our own to the leadership of the Independent Community Bankers of America (ICBA), our close working partner on the federal issues and matters. Bob Fisher, President & CEO of Tioga State Bank in Spencer, New York, is the incoming ICBA Chairman. Bob is a fifth generation New York community banker, a former Chairman of IBANYS and a longtime (and current) IBANYS board member. All who have worked with Bob know his commitment to our industry and our future. Bob is profiled in a new article in American Banker, in which he noted community banks have adeptly navigated the pandemic, accelerated existing transitions in digital banking and recruiting, and led the way on Paycheck Protection Program lending. Read more (subscriber paywall).
As ICBA holds its “ICBA Connect” virtual meeting this week, IBANYS is preparing to put the final touch on our own “All Banks On Deck” community banks mid-year virtual conference April 19 – 20. Sessions will be held 8:30 a.m. – 2:00 p.m. each day, and will focus on key issues and trends of importance to New York community bankers.
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Community banks are once again responding to the needs of our customers and communities, leading the way with a strong performance in the new round of PPP lending. According to recent data, New York State PPP activity ranks second in the nation. In total, more than $1.9 million loans totaling $120 billion . . .in New York, there have been more than 126,000 loans totaling $11.1 billion.
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We hope you are all staying safe, and we thank you for all you do every day for your customers, your communities and our industry . . .and, of course, for IBANYS!
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MANDATORY ACCEPTANCE OF POWERS OF ATTORNEYS FOR BANKS
On March 12th Jay Hack, Esq. of Gallet, Dreyer and Berkey, LLP Law firm is holding a seminar on the latest changes (signed into law in 2020) on the statute of Power of Attorney. Jay will review the statute and he feels this is an important change for community banks without in house counsel. Very simply put, community banks may get into trouble if they do not prepare. Please read detailed article.
Please click below to register to attend this free webinar.
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IBANYS 2021 Virtual Education Meetings |
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Mark Your Calendars & Save These dates |
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- Monday & Tuesday, April 19-20, 2021 - "All Banks On Deck" - Community Banks Mid-Year Conference - 8:30 a.m. - 2:00 p.m. each day (Tentative times)
COMPLETE BROCHURE AND MEETING DETAILS COMING SOON!!
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We hope you join us for this amazing event. Here are some of the topics our speakers will discuss....more speakers and topics are being added.
- ICBA Update
- Compete to Win — Digital Strategies for Community Banking
- Syncing Portfolio Analytics, Stress Testing, and Loan Review: The Exponential Power of the Three Combined
- State of the Housing Market and the FHLBNY’s new Mortgage Asset Program (MAP)
- Faster Payments
- Continued Evolution of a Bank’s Investment Portfolio
- Digital Marketing Strategies You Can Take to the Bank
- Building High Performance Teams in an Agile Virtual World
- Bank Cybersecurity: Looking Back to Look Forward
- Cares Act Section 4013 Update
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Thank you to all of our sponsors.
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Event Platform: ZOOM Live Webinar (registration is required)
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How to register: Each bank and supporting company of IBANYS will pay ONE REGISTRATION FEE. All employees of that bank/company may attend any and all sessions.
- Each person must be registered (first & last name and email are required for each registrant).
- A unique registration link will be sent to each registrant.
- You may attend the entire event or select sessions.
- You log in five minutes prior to the start of your session.
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ASSOCIATE MEMBERS & PREFERRED PARTNERS |
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Monetary Policy Under COVID-19:
Actions, Results and Consequences
March 16, 2021 | Conference Call & Webinar
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You are invited
The COVID-19 pandemic has caused widespread disruptions to the economy and the Federal Reserve took unprecedented policy actions in response. Join Dimitri Delis, Ph.D. from Piper Sandler financial strategies to hear how much firepower the Fed has left and how it may further respond to an economy still suffering from COVID-19 in an era of low rates and low inflation. While the asset side of the Fed's balance sheet attracts most of the attention, he will discuss the composition of the liability side and how it will be impacted by the Treasury's fiscal position going forward.
Topics will include:
- The effect of Quantitative Easing (QE) on long-term rates and equities
- How large the Fed's balance sheet could grow before inflation becomes a problem
- Under what conditions does the Fed become insolvent or temporarily impaired
Date and time
Tuesday, March 16, 2021
1:00-2:00 p.m. CT
*Call will include a 45-minute presentation followed by 15 minutes of Q&A.
Registration
Please register using the link below. You may also use this link to access the webinar on the day of the event.
HOSTED BY
Senior Econometric/Macro Strategist
Financial Strategies
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Data Management Tools to Unlock Marketing Potential |
More than ever, developing and utilizing a robust data management strategy is imperative for bank marketers' success. However, research shows that two of the biggest challenges for bank marketers surround the ability to capture data and use data analytics tools. Discover how managing your data with the right tool can unlock critical marketing opportunities for your bank.
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2021 ICBA Capital Summit - Virtual
April 27, 2021
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Join ICBA and fellow community bankers as we advocate for change in these areas through our Plan for Prosperity legislative platform. By coming together and espousing the community bank message, we will make change happen for our business, our customers and our communities.
While the last year was unexpected and unprecedented to say the least, community banks continued to show up and support their communities as they have before. This year is the start of a new Congress, and new and incumbent members of Congress need to hear about the importance of our industry directly from community bankers like you.
Community banks invest in and support their communities in good times and bad. Community banks build more resilient communities, and the COVID-19 pandemic demonstrated this positive economic impact firsthand as community banks once again rose to the challenge—saving tens of thousands of local small businesses and jobs across the nation.
Join us for the 2021 ICBA Capital Summit, the preeminent annual event to advocate for our industry and your community.
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Katharine Bray, SVP
Head of Sales, Trading, & Business Development,
Vining Sparks Interest Rate Products Group
Katharine joined Vining Sparks in November 2008 and currently serves as director of sales and trading for Vining Sparks Interest Rate Products, LLC. In this role, Katharine oversees marketing, strategy development, trading and post-trade client support. Katharine’s background includes 20 + years of combined capital markets/bank/financial management experience. Katharine received her undergraduate degree from Averett University with a Bachelor of Science in finance and her MBA from Wake Forest University.
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Dan Stimpson, CPA
Senior Vice President
Dan works with portfolio managers to assist them in optimizing their investment portfolio return and risk position, while incorporating the entities liquidity needs, risk controls and capital constraints. Dan started working in the financial sector in 2001. Prior to joining Vining Sparks, Dan began his career with KPMG, LLP where he provided accounting and audit services to a variety of industries. Dan later served as Vice President and Corporate Controller at a community bank. Dan obtained his undergraduate and graduate degrees in accounting from the University of Mississippi. In addition, Dan is a Certified Public Accountant and is a member of the American Institute and Tennessee Society of Certified Public Accountants.
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Balance Sheet Strategies: Emerging from the Pandemic
ICBA Securities and its exclusively-endorsed broker/dealer, Vining Sparks, will present a webinar on Balance Sheet Strategies for the state associations that endorse ICBA Securities, as well as other community banks. This is the second in the 2021 webinar series.
Many community banks posted strong earnings in 2020 from PPP loan demand and increases in fee income, record deposit growth, and healthy asset quality. While many of these positive trends still remain in place, the environment in 2021 is challenging as loan demand has not kept pace with the surge in deposits and the build of excess liquidity contributed to historically low net interest margins. The recent improvement in investment yields and the steepening of the yield curve helped stabilize margins. Treasury yields recently moved higher to pre-pandemic levels and the slope of the Treasury curve is the steepest since 2017. Expectations of additional fiscal stimulus drove this move in the market and should provide a boost to GDP growth this year as it pushed inflation expectations higher.
With the Fed seemingly on hold for a number of years before raising fed funds rates, defending current profitability without causing rising rate exposure is the focus of most balance sheet strategy discussions. Market volatility and higher interest rates also create opportunities. Investment portfolio managers actively invest excess liquidity, realize gains on sales, and adjust portfolio structure. We also see balance sheet managers implementing funding and hedging strategies designed to take advantage of opportunities the current market offers. During this webinar, we will provide actionable strategies that create stable earnings and improve the interest risk management position of your financial institution.
You Will Learn:
- An overview of economic and market conditions and our latest forecasts
- How rising interest rates and higher inflation could become a concern for financial institutions
- Balance sheet, interest rate risk and profitability trends in the banking industry
- Investment, funding and hedging strategies that improve performance
The webinar will last approximately 1 hour.
Cost
There is no cost for Vining Sparks' customers and prospects.
Prerequisites
Those working as CEOs, CFOs, investment managers, directors, and anyone responsible for balance sheet or investment portfolio management that have the working knowledge necessary to benefit from the content of this webinar.
Instructions for Audio/Video
You will receive instructions to access the webinar after your registration is confirmed. If you do not receive a registration confirmation email, please contact your account representative.
Additional Information
Field of Study: Specialized Knowledge
Advance Preparation: None
Program Level: Intermediate
Delivery Method: Group Internet-Based
Conference participants can earn up to 1 hour of CPE credit based on a 50-minute hour.
Questions?
For additional questions regarding this webinar, concerns and/or cancellation policies, please contact Jim Reber (info@viningsparks.com) at 800-829-0321.
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Do’s, Don’ts, and Maybes
A set of simple rules to streamline portfolio management in 2021.
By Jim Reber
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If my recent aggregate conversations with investment managers are an indication, there is still a lot of seat-of-the-pants decision making going on out there when it comes to portfolio strategies. And I hasten to add this is not a criticism; it’s merely an observation. Why should we expect anything else?
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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.
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Subscription Tokens
The More You Buy, The More You Save
How does it work:
Tokens can be used to purchase live or recorded webinars anytime, with no expiration! Tokens for both live and recorded webinars are available for an additional fee. (What’s the difference? Click here for the full description.)
Once you have your Subscription Token code, you can immediately register for webinars by using the code at checkout! (Subscription tokens not applicable for full series registrations, or other specials.)
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- With the April 1 state budget deadline less than a month away, the fiscal outlook for the state and New York City is significantly improved from no longer the "doomsday picture" during the pandemic. This week, the Senate, Assembly and the Governor’s budget director agreed the state will collect $2.5 billion more in taxes over the next two years than the was estimated less than two months ago. Tax receipts are far higher than once projected: high-income earners, who pay the vast majority of income taxes, have kept their jobs and the financial sector is reporting near-record profits. The state has received at least $9 billion in federal money from the previous aid bills, according to NYS Comptroller DiNapoli, and President Biden's "American Rescue Plan" would send $12.6 billion in general aid to the state, $3 billion for Medicaid and provide more than $12 billion for education, most of which would be sent to local districts.Still, DiNapoli and budget officials warn of long-term risks because New York’s economic recovery is likely to be weaker than the nation as a whole.
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The $12.5 billion in direct federal aid New York State will receive from the relief package comes at a key time. The legislature is poised to unprecedented leverage as it works with the Governor who is embattled by two crises -- and appears ready advance such legislative priorities as higher taxes on the wealthy and delivering aid to struggling New Yorkers. There's still some unfinished business that complicates this year's budget planning.Before Determining This Year's State Budget, Albany Lawmakers Must First Decipher Last Year's
Latest State Legislative Activity
Legislation permitting credit unions to participate in the Linked Deposit Program was reported by the NYS Assembly Economic Development Committee to the Assembly Ways & Means Committee with no negative votes. IBANYS is monitoring this issue closely and will be prepared to offer our opposition, as we have successfully done in previous years.
Here is the most recent legislative activity in Albany (both committee agendas and bill activity) for the current week: See here and here
Earlier legislative activity
Other previous legislative activity
New York State Attorney General Letitia James announced that former U.S. Attorney Joon Kim and Anne Clark, an employment discrimination lawyer, will run the investigation into Governor Cuomo and the allegations that he sexually harassed multiple women. Meanwhile, despite growing calls for him to resign, he has stated he will not do so, and there does not appear to be any serious move toward impeaching the Governor. Meanwhile, Governor Cuomo has signed into law the bill to limit his emergency pandemic powers, as he said he would.
IBANYS will monitor developments, and will keep you fully informed.
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- The House will pass the $1.9 trillion American Rescue Plan today, and President Biden will sign the legislation into law. The president will address the nation Thursday evening to talk about the Covid crisis. The new package will become the sixth major Covid relief bill Congress passed over the last year. The price tag for all that legislation: More than $5.5 trillion.
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ICBA has released a summary of the $1.9 trillion American Rescue Plan Act (H.R. 1319), which Congress is expected to pass this week. The bill includes "recovery rebate" payments of $1,400, an extension of supplemental unemployment insurance, aid to state and local governments, and funding for vaccine distribution and schools. Read the summary.
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ICBA's 2021 community banking agenda (in an open letter to Congress) urges a pragmatic agenda of regulatory relief and a more competitive landscape to promote a dynamic economy. IBANYS looks forward to continuing to work closely with ICBA on federal policies and priorities. READ ICBA RELEASE
- Some banks want the Biden administration to keep the PPP loan window open past its current expiration date at the end of the month, amid concerns that lenders don't have enough time with a backlogged system to implement new rules to help self-employed businesses access the program and obtain more aid.
- Treasury Secretary Yellen said the Biden administration is working toward getting the labor market "back on track" by later this year or early in 2022. "We're really concerned about ...permanent scarring from this crisis, and it's focused us very heavily on doing everything we can to get back on track as quickly as we can."
SBA Information Notice 5000-20135 - Notification Regarding Targeted EIDL Advance Deposits
The purpose of SBA notice 5000-202315 is to inform depository financial institutions that SBA is launching a new round of Economic Injury Disaster Loan (EIDL) Advances – called Targeted EIDL Advances – which provide eligible businesses (including sole proprietors, independent contractors, and nonprofit organizations) with up to $10,000 in total grant assistance.
On July 22, 2020, SBA issued Information Notice 5000-20037(also attached), Guidance Regarding Identification and Reporting of Suspicious Activity in the COVID-19 EIDL Loan Program (copy attached), to alert depository financial institutions to the potential for suspicious activity related to COVID-19 EIDL funds deposited into business or personal accounts.
SBA has implemented new verification methods to prevent fraud in the Targeted EIDL Advance program; however, SBA requests that depository financial institutions continue to report any suspicious activity as described in Information Notice 5000-20037. This Notice provides a description of the Targeted EIDL Advances and the expected deposit amounts so that depository financial institutions can distinguish legitimate recipients from potentially fraudulent activity.
Valerie Shoudy, Lender Relations Specialist
Grace Conners, Lender Relations Specialist
U.S. Small Business Administration
224 Harrison St., Suite 506 | Syracuse, NY 13202
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