• We are less than three weeks away from IBANYS' Virtual Regulatory Compliance Update schedule for Tuesday, February 7, 2023, and we hope you will join us. This program features representatives from the OCC, FDIC and DFS, who will provide insight on what to expect in 2023. We will also have subject matter experts from UHY, Plante Moran & The Bonadio Group to share their knowledge and expertise and provide additional valuable material for New York community bankers. Please note: Attendees can earn up to 6 CPE credits. The detailed agenda and registration information can be found under IBANYS meetings below in the newsletter or on our website: https://ibanys.net/meetings-schedule/

• 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 is asking 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 cc your responses to IBANYS: Johnw@ibanys.net and Stever@ibanys.net. . TAKE THE SURVEY

• ICBA announced nominees to serve on its 2023-24 board of directors. ICBA’s current board will vote on the nominations during ICBA LIVE 2023, scheduled for March 12-16 in Honolulu, Hawaii. The nominees include two New Yorkers: 1) Bob Fisher (Tioga State Bank in Spencer, N.Y.) for Past Chairman. Bob is a former Chair of both ICBA and IBANYS, and a current IBANYS board member. 2) Jill Sung (Abacus Federal Savings Bank in New York, N.Y.) as an At-Large Director. Jill is a member of IBANYS' Government Relations Committee. Congratulations to both Bob and Jill as they continue to provide their time, energy and leadership on behalf of community banks! READ MORE

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

CONGRATULATIONS

IBANYS congratulates Thomas Piché on his retirement after serving for 25 years as President & CEO of Carthage Savings and Loan Association. Dale Klock assumes the role of President & CEO. Dale has been with the bank for more than 20 years. Congratulations to both.

Click here press release

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

IBANYS 2023 Regulatory Compliance Update (Virtual)

February 7, 2023

9:00 a.m. – 3:15 p.m.

Have you registered for IBANYS Virtual Regulatory Compliance Update for NY Community Banks scheduled for Feb. 7? Registration is open and there is still time to register.

We have an outstanding slate of speakers that include:

•  OCC
•  NYS Department of Financial Services
• FDIC
• The Bonadio Group
• Plante Moran
• UHY & Barry N. Rein & Associates

The attached brochure provides the detailed meeting agenda and registration information. 

Register today to join us on February 7^th.  

December 2022 CPI And January 2023 Consumer Sentiment Updates

January 17, 2023 — This week, we turn to Dimitri Delis, PhD for two important updates on economic news released this week… If you missed his 2023 Interest Rate Outlook, read the full update here.

CECL Is Here: See How CECLSolver Can Help

Thursday, January 26 at 2pm ET

https://us02web.zoom.us/webinar/register/4116711126442/WN_f8N5FLi4T1q59DoBFqtH-g

Rethinking your CECL solution? It's not too late to get started. In this brief demo of QwickAnalytics® CECLSolver™—the practical, easy-to-use compliance tool from QwickRate—you’ll see how CECLSolver works. How you can get started quickly. Take the mystery out of WARM calculations, Q factors and timelines. And hear how other banks realize quick success by using the tool to meet compliance requirements — without having to pay consultants or suffering from “analysis paralysis”. Register here.

CECL Coffee Talk Q&A

Friday, January 27 at 10am ET

https://us02web.zoom.us/webinar/register/7216711141582/WN_l5c7LVEATjaats1KbbsqeQ

The CECL deadline is here. So grab a beverage and join the QwickRate/QwickAnalytics monthly CECL discussion to hear more about the challenges banks are facing now as they fully adopt the CECL standard. You’ll hear the latest questions and concerns they’re receiving from banks—including reactions and expectations from their examiners. And panelists will answer your questions in the interactive audience Q&A. Register here.

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.

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

• IBANYS continues to oppose legislation that would negatively impact New York community banks. With the legislative session now underway in Albany, I just wanted to provide a bit of background on what we expect to see this year. The article below combines many of the hot topics in this year's bucket of bills likely to be considered, including public banking, climate change, underserved and underbanked communities and municipal deposits.  IBANYS will be diving into these topics -- and, will need the input and the voices of New York community bankers. https://www.cityandstateny.com/opinion/2023/01/opinion-public-banks-can-help-new-york-meet-its-ambitious-climate-goals/381693/

• Here are five key takeaways from Gov. Hochul's January 10 State of the State address. From the banking perspective, Hochul proposed addressing additional overdraft and NSF fees, saying they negatively  impact low/moderate income New Yorkers. She also 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 proposed indexing minimum wages to inflation -- specifying 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 wage increases would be capped, but 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. Governor Hochul also pledged to not increase New York's personal income tax this year -- which will likely lead to a broader debate during state budget negotiations.  Read More. The Governor has also announced that the state has collected close to  $1 billion from mobile sports betting in the year that it’s been legal.

• Gov. Hochul faces a challenge: How to stem the state's nation-leading outmigration flow in the face of economic headwinds, post-pandemic realities and a housing crisis in which there are more jobs than homes.   The Times Union reports

• State Senate Banks Chair James Sanders (D-Queens) keeps his position in 2023, but there is a new Assembly Banks Chair: Assemblywoman Pamela Hunter (D-Syracuse). There are also 39 new state legislators in Albany:  Meet the newbies coming to town in 2023. Here is this year's State Legislative session calendar: https://nyassembly.gov/leg/docs/session_2023_calendar.pdf. 

• 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. 

• DFS’s Financial Risks from Climate Change guidance has been published and is also available on their website: Climate Change.

• An attorney defended Albany’s landmark good cause eviction law at the state’s second-highest court in an attempt to get a lower court’s ruling reversed, the Times Union reports.

• The Chairman of the U.S. House Oversight Committee, Rep. Comer (R-KY), has written to the Commissioner of the New York State Department of Labor requesting all information and data relating to fraud in the state’s unemployment insurance. Read More

•  ICBA updated its “Advocacy in Action” government relations dashboard for the first quarter of 2023, providing the latest community banking advocacy successes and priorities. The resource spotlights hot-button community banking advocacy issues, such as the new Congress, climate risk regulation, deposit insurance assessments, Durbin Amendment expansion, crypto, and more. Read more. Meanwhile, ICBA President & CEO Rebeca Romero Rainey delivered a message to community bankers:  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.

• House Financial Services Chairman Patrick McHenry (R-NC)  announced the full Committee’s GOP members, and they include two New Yorkers: Rep. Andrew Garbarino (R-L.I.) and Rep. Mike Lawler (R-Lower Hudson Valley). Democratic members have not yet been announced. McHenry also announced the following Subcommittee chairs:  Capital Markets—Rep. Ann Wagner (Mo.); Financial Institutions and Monetary Policy—Rep. Andy Barr (Ky.); Digital Assets, Financial Technology, and Inclusion—Rep. French Hill (Ark.); National Security, Illicit Finance, and International Financial Institutions—Rep. Blaine Luetkemeyer (Mo.); Oversight and Investigations—Rep. Bill Huizenga (Mich.), and Housing and Insurance—Rep. Warren Davidson (OH).

• New members of the House Agriculture Committee also include two New Yorkers:  Reps. Nick Langworthy (R-Western NY) and Marc Molinaro (R-Hudson Valley).  

• As calls for investigations into Rep. George Santos (R-L.I.) – and for his resignation from Congress -- continued, House GOP leadership named Santos to serve on the Small Business and the Science, Space and Technology Committees. The New York Times reports.  Meanwhile, new details link Santos to cousin of sanctioned Russian oligarch link, and a Long Island GOP leader says he has proof that Santos admitted to crimes: link. 

• New York's junior U.S. Sen. Kirsten Gillibrand announced she will run for her third full term,  the Daily News writes.

• How his Brooklyn roots laid a path for Rep. Hakeem Jeffries – the new House Democratic Leader -- in Washington.

• Acting Comptroller of the Currency Hsu laid out his plan for determining whether large financial institutions are “too big to manage” and simplifying them to address their deficiencies.  He cited five signs that an institution is too big to manage, such as big bank assumptions that their problems are isolated and supervisors that consistently uncover more risks than the bank's internal risk and control functions do. He also cited the potential for problems to fall through the cracks among senior leaders because of a bank’s size, contrasting megabanks with community banks whose leaders track even small problems. To address too-big-to-manage risks, Hsu called for an “escalation framework” that would ensure deficiencies are clearly identified, that banks are given opportunities to address them, and that failure to do so would provide presumptive evidence that the bank is at the limits of its manageability and should be subject to simplification via divestiture.

• The CFPB separately issued a blog post on its $3.7 billion in penalties against Wells Fargo Bank. The post breaks down Wells Fargo’s practices affecting auto loan customers, mortgage borrowers, and bank account holders and what they can expect. An ICBA op-ed noted the penalty reflects the continued impact of the too-big-to-fail problem: op-ed on LinkedIn.

• The Fed has directed the six largest U.S. banks to compile by July 31 a scenario analysis examining how climate change and the transition to a lower-carbon economy could impact their businesses, including corporate lending and the physical risk to real estate portfolios. The Fed said the exercise is meant to build understanding and is not meant to provide "forecasts nor policy prescriptions," and Vice Chair for Supervision Michael Barr noted the Fed must "ensure that banks understand and manage their material risks."  Reuters

• The Federal Reserve Board released details on its pilot climate scenario analysis exercise designed to measure and manage climate-related financial risks at six of the nation's largest banks. Six bank holding companies—Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo— will submit completed data templates, supporting documentation, and responses to qualitative questions to the Fed by July 31, 2023. The Fed will gather qualitative and quantitative information, including details on governance and risk management practices, measurement methodologies, risk metrics, data challenges, and lessons learned. The Fed expects to publish insights from the pilot around the end of this year, including aggregated information about how large banks are incorporating climate-related financial risks into their risk-management frameworks.

• The Fed said its climate exercise will support its responsibilities “to ensure that supervised institutions are appropriately managing all material risks, including financial risks related to climate change.” In a new article for the Wisconsin Bankers Association it was noted that while climate risk management frameworks proposed by federal regulators purportedly target large banks, the agencies have publicly signaled the policies will ultimately trickle down to community banks.  ICBA 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. It has also long maintained the financial system should not be used to choke off lawful but climate disfavored industries. 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.

• In opening remarks at a conference hosted by the Federal Reserve Bank of New York , New York Fed President John Williams stated that the economy does better when everyone gets a shot at participating: "An inclusive economy doesn't just help those that are in need of more or different opportunities, rather, it boosts the economy more broadly."  Williams did not comment on the monetary policy outlook in his brief remarks.  https://www.msn.com/en-us/money/markets/fed-s-williams-making-economy-inclusive-has-benefits-for-overall-activity/ar-AA16rZDj?mkt_tok=ODUwLVRBQS01MTEAAAGJY_eMQmBIT7MaNGJWNaGlvwU-vQwzHM2cJoTsdyCDY2wsM4OqKub3xVJamVlAv9f2I9AvurqufrC091yfOThYfA2Ir6mjv5xmyql6lNRuVi7O

• A New York Fed report released Tuesday showed that spending by US consumers is growing at a slower pace and the share of households making major purchases in recent months declined. Monthly household spending grew by 7.7% in December from a year earlier. That is down from a high of 9% in August, still above the 5.1% growth in December 2021, and  “well-above” the pre-pandemic level of 2.5%.