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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IBANYS Mid-Year Conference "All Banks on Deck" Sponsors
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The President's Message
By John Witkowski, President & CEO
Yesterday, IBANYS wrapped up our two-day Mid-Year Conference – “All Banks on Deck”. The event was extremely successful with over 25 banks and 200 + participants. We want to thank the subject matter experts for taking the time to speak to our members and share their knowledge and expertise. We also want to thank each of our sponsors of this event. We truly appreciate each of our sponsors and all those who attended and helped make this event successful.
Please watch your email for upcoming regional events.
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ICBA'S Capital Summit – Including IBANYS’ Virtual congressional visits – Begins NEXT TUESDAY, April 27. . .SIGN UP TODAY!
During the Summit, IBANYS is coordinating conference call visits with key members of the New York congressional delegation and/or top staff on federal community banking priorities. New York has seven new Representatives, six members on the House Financial Services Committee, and several others on such other key committees as Small Business and Agriculture. (See attached). . .We need you to tell your story, discuss your performance during the pandemic and explain our industry's needs and priorities. Here is a link to ICBA's 2021 Lobby Card: https://www.icba.org/newsroom/blogs/events-blogs/2021/04/01/capital-summit-spring-2021-lobby-priorities with the 2021 priorities we will be discussing with the congressional offices. IBANYS has arranged conference call visits with a number of congressional offices Here is the preliminary schedule of calls. . .Let us know which calls you wish to participate in -- email us your preferences/requests: (Johnw@ibanys.net; Stever@ibanys.net.
The legislative and regulatory action continues in Albany (with a focus on everything from consideration of establishing a public bank, allowing credit unions to participate in the state linked deposit program, taxes, exempting Covid 19 federal relief from application of money judgment). . .and, in Washington (where such issues as taxes, updated PPP guidance and programs, a safe harbor for financial institutions that serve cannabis-related businesses in states where cannabis is legal, credit unions and more are in the limelight.) Check out our Albany and Washington sections today for full details.
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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ASSOCIATE MEMBERS & PREFERRED PARTNERS |
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Mortgage Asset Program (MAP) Overview
A New Secondary Market Outlet
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The Federal Home Loan Bank of New York (FHLBNY) offers the Mortgage Asset Program (MAP®) as a secondary market outlet for our members to fund mortgages and be competitive in offering fixed-rate mortgage loan products. MAP gives mortgage lenders an alternative to funding mortgages while allowing flexibility and transparency from both an operational and an economic perspective.
Key Features
- A flexible program with competitive pricing catered to our local markets
- No loan level price adjustments
- A pathway to accumulate FHLBNY Stock – members are required to purchase capital stock equal to 4.5% of what they deliver into MAP
- Simplified credit risk sharing structure with the added potential to be rewarded with fee income for strong loan performance
- No risk-based capital impact or collateralization requirements on loans sold
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Founded in 1978 and led by active and engaged problem solvers, we bring a unique passion and approach to our work. For 40 years and counting, we have been listening to our clients and partnering with them to create solutions that address their financial and business challenges.
This dedication has not only contributed to our growth, but has led us to become a Top 50 National Accounting firm.
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The Baker Group has been a trusted financial partner helping community financial institutions improve their decision-making, interest rate risk management, and investment portfolio performance since 1979.
In 1981, founder James V. Baker revolutionized financial risk management with his publication, Asset/Liability Management. In his best-selling book, Dr. Baker recommended integrating interest rate risk and investment portfolio management with balance sheet management to better monitor and measure interest rate risk and improve overall performance. By applying Baker’s “total bank” approach, community financial institutions were able to adapt to the changing market throughout the years.
Today, The Baker Group is one of the nation’s largest independently owned securities firms specializing in investment portfolio and interest rate risk management for community financial institutions nationwide. After decades of industry service, The Baker Group continues to grow and adapt in order to better serve their financial partners.
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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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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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Legislative Activity
One significant bill introduced earlier in the legislative session by Senate Banks Committee Chairman James Sanders (D-Queens) is S.1762-A https://legislation.nysenate.gov/pdf/bills/2021/S1762A: “AN ACT to amend the banking law, the state finance law and the general municipal law, in relation to establishing the ‘New York public banking act’." (“State lawmakers in New York want to lay down the regulatory framework for municipalities to create local public banks in order to extend and expand access to communities of color in the post-COVID-19 economy. Read More”) IBANYS, a number of New York community banks and other financial institutions have discussed this bill with Chairman Sanders and his staff. The Chairman said his intent is to expand banking services to unbanked or underbanked communities—particularly regarding homeownership and small business funding. We informed Chairman Sanders that we strongly oppose this legislation because it would create another layer of unfair competition for independent banks throughout the state. We raised a number of other related concerns, including insurance issues, as well as the need for more information on where within the state these problems exist. We suggested that while there is a need to improve the described services to those areas, but suggested alternative ways those goals might be achieved by using already existing “tools” (i.e., through MDIs, CDFIs, the NYS Business Development District/BDD Program and others.) Chairman Sanders noted the bill is still in the Banks Committee, that there would be “no rush to judgement” and that he looks forward to working with IBANYS and others to gather and share additional information and consider alternative solutions.
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Meanwhile, another bill introduced by the Chairman, (S.191 (Sanders) -- would allow credit unions to participate in the Linked Deposit Program -- is on the Senate floor. Read the legislation here. IBANYS is opposing this legislation, as we have successfully done in previous years. Read our Memo in Opposition.
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S 5923-A Thomas, Same as A 6617-A Weinstein -- Exempts COVID-19 stimulus relief for individuals and families with children from money judgments; provides that in services of notices, forms, and procedures for claims of exemptions that a restraining notice or notice of levy by execution issued against a bank account shall have language to inform the holder of such account that funds for COVID-19 stimulus relief for individuals and families with children are exempt and cannot be taken.
- The Laws of 2021 Chapters 1-49,52,56,61-101-- Banking:
§ 379-b. Service corporation owned by associations; authorized activities of such corporation; investment therein.
- A savings and loan association may invest in the stock, capital notes and debentures of a service corporation organized under the laws of this state for the sole activities set forth in subdivision two of this section, to the extent and upon such conditions as are or have been authorized by the superintendent of financial services, provided that all of the stock of such service corporation is, or is to be, owned by one or more savings and loan associations; and provided further, that no savings and loan association mamake any investment under this section if its aggregate outstanding investment thereby, determined as prescribed by the superintendent of financial services, would thereupon exceed three percentum of its assets.
- The activities of such service corporation, performed directly or through one or more wholly owned subsidiaries, shall consist of rendering such services to savings and loan associations and making such investments for itself and for savings and loan associations as are authorized services and investments for such associations under the provisions of this chapter as well as such activities as may be prescribed by general regulation of the superintendent of financial services.
Most Recent Legislative Update:
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Here is the latest committee activity for the week of April 19.
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Here is bill activity for April 12 - 16
Earlier Activity:
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Bill introductions for March 8th through March 26th, as well as bill activity and committee agendas, are provided: See updates: and here and here
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A06617A prohibits bank set off and execution of judgments against emergency relief funds and is on the Assembly Codes agenda.
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S.2061/A.6281 would amend the State Banking Law (section 9-L) to prohibit a bank from imposing a fee on a non-customer of the bank when cashing a check drawn on an account of the bank. IBANYS is preparing a Memo in Opposition.
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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.
Earlier this session, the New York State Legislature passed and the Governor signed legislation that legalized recreational marijuana. However, since these products are still federally illegal, many financial institutions are wary of accepting cannabis business clients. NYS Senate Majority Leader Andrea Stewart-Cousins says that will most likely have to be addressed at the federal level, State of Politics reports. Yesterday, the U.S. House passed the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1996) that would establish a safe harbor for financial institutions that serve cannabis-related businesses in states where cannabis is legal. It now moves to the Senate, where similar efforts have failed in the past. ICBA and IBANYS support this legislation. (See today's Washington section below for more details.)
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SBA Procedural Notice 5000-809631 - PPP Loan Increases on First Draw
On January 13, 2021, SBA issued Procedural Notice 5000-20076, First Draw Paycheck Protection Program Loan Increases After Enactment of the Economic Aid Act (“EAA Loan Increases Notice”). The purpose of the EAA Loan Increases Notice was to provide procedures for reapplications or requests for increases for certain First Draw PPP Loans that were approved on or before August 8, 2020.
The PPP Extension Act of 2021 (“Extension Act”) (Pub. L. 117-6), signed into law by the President on March 30, 2021, extended SBA’s authority to guarantee First Draw PPP Loans and Second Draw PPP Loans (collectively, “PPP Loans”) through June 30, 2021. The Extension Act contains an important restriction, which provides that from June 1, 2021 through June 30, 2021, SBA shall not accept new PPP Loan guaranty applications from Lenders and shall only process PPP Loan guaranty applications submitted by Lenders to SBA before June 1, 2021. This Updated Notice modifies the EAA Loan Increases Notice to reflect the Extension Act. Any provisions of the EAA Loan Increases Notice that are not modified by this Updated Notice remain in effect.
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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April 27 is the 2021 ICBA Virtual Capital Summit. We urge you to participate -- and, to join in IBANYS' grassroots push in virtual "congressional visits" with members of our New York Congressional Delegation. See list. In the face of the pandemic, New York community banks once again demonstrated our positive economic impact, saving thousands of local small businesses and jobs throughout our state. Our New York Representatives need to hear about the importance of our New York community banking industry -- FROM YOU. We have seven new Representatives from New York. . . six who serve on the House Financial Services Committee. . .three on the House Small Business Committee (including Chair Nydia Velazquez). . .and three on the Agriculture Committee. We will also discuss federal issues advocated by ICBA on their 2021 Lobby Card. Click here to learn more & register. . .then, let us know which congressional office "visits" you would like to join.
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The House voted 321-101 to pass ICBA-advocated legislation to establish a safe harbor for financial institutions that serve cannabis-related businesses in states where cannabis is legal. The bipartisan vote sends the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1996) to the Senate. Similar legislation passed the House in 2019 but did not advance in the Senate. The conflict between state and federal law has created legal uncertainty for banks and forced cannabis-related businesses to operate mostly in cash, presenting a public safety risk. This House Bill (the SAFE Banking Act, introduced by House Subcommittee on Consumer Protection and Financial Institutions Chairman Perlmutter (D-CO), would apply to states that have legalized cannabis for medical or recreational use. In these states, federal regulators would not be permitted to take prejudicial action against banks solely for serving a cannabis-related business. As the first national banking trade group to support the SAFE Banking Act and to testify before Congress on its behalf, ICBA applauded the House vote and urged Senate passage. READ ICBA RELEASE
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The federal government is preparing to open two new industry-specific small-business relief programs, one of them months in the works, as its signature pandemic aid effort, the Paycheck Protection Program (PPP), nears its end. The Small Business Administration said it hopes to start taking applications by the end of this week for a $16 billion grant fund for live-event businesses like theaters and music clubs. Meanwhile, The SBA's $28.6 billion Restaurant Revitalization Fund -- the latest round of COVID relief passed under the American Rescue Plan -- will allow establishments to apply for up to $10 million in cash per business, including up to $5 million per location. "...we’re prioritizing funding to the hardest-hit small businesses—irreplaceable gathering places in our neighborhoods and communities that need a lifeline now to get back on their feet,’ said SBA administrator, Isabella Casillas Guzman. The newly announced guidelines will cover restaurants, food carts and trucks, caterers, bars, bakeries, breweries, and wineries.
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Credit union hearing push intensifies. ICBA is encouraging community bankers to call on Congress to hold hearings on credit union acquisitions of taxpaying community banks. Taking Action: ICBA’s Be Heard grassroots action center makes it easy for community bankers to contact their members of Congress. New Acquisition: ICBA last week renewed its call for policymakers to investigate credit union acquisitions of community banks following the purchase of a $1.6 billion community bank in Jonesboro, Ga., by a Florida credit union with more than $10 billion in assets. ICBA Advocacy: ICBA continued its call for Congress to hold hearings on this trend and to request a GAO study on the evolution of the credit union industry and National Credit Union Administration supervision. Next: Community bankers can continue the campaign against the credit union tax exemption at this month’s ICBA Capital Summit, which is set to livestream April 27 with remarks from top policymakers and virtual meetings with congressional offices. CONTACT CONGRESS
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