September 1, 2021

IBANYS Weekly E-Newsletter

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    A reminder: Our new address is:  Independent Bankers Association of New York State 194 Washington Ave, Suite 420 Albany, NY 12210 ********** With the calendar turning to September, there are less than two weeks until IBANYS’ first in-person gathering in more than 18 months: Our “Comeback Celebration” September 13-14 at the 1000 Islands Harbor Hotel in Clayton, New York. All C-level suite, Senior Management, Bank Boards are welcome. We have a great line up of speakers on timely topics. . .Join us for a great line up of speakers on timely topics, to enjoy some golf or a boat tour on the St. Lawrence . . .and to get together with your colleagues. Today's newsletter includes lots of details on the program, how to register and sponsorship opportunities! Governor Hochul has nominated a new Superintendent of Financial Services to replace Linda Lacewell, who resigned the same day (August 24) former Governor Cuomo did. Adrienne Harris, a former Obama administration economic advisor, consultant and banking attorney, is the Governor's selection. https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202108312. See today’s Albany section for full details. There will be lots of new faces in very powerful places, and we need to make certain these new leaders understand the importance and value of New York community banks – to our state and local communities, economies, small businesses and consumers. IBANYS will be putting together an outreach effort to the new DFS Superintendent, to our new Governor's key aides (including Secretary to the Governor Karen Persichilli Keogh and Counsel to the Governor Elizabeth Fine). . .and, eventually, to the new Assembly Banks Committee Chair once he or she is named. (Chairman Pichardo will leave the Legislature next week.) Stay tuned. Please stay safe and healthy, enjoy the upcoming Labor Day weekend and the close of the summer season. John 

The Buffalo Bills Alumni are hosting a weekend event on Friday, September 24 and Saturday, September 25 to support local charities of Western NY and the Cure the Blue Foundation.   Please click below for the complete brochure for registration information for the Friday night Gala, Saturday golf tourney, and sponsorship opportunities which include tickets for all events.  Buffalo Bills Alumni 2021 Weekend of Events Registration & Sponsor Info.

IBANYS MEETINGS

Click for brochure & registration information Click here for sponsorship opportunities

IBANYS "Come Back Celebration" Executive Fall Meeting September 13-14, 2021 We are calling this The Come Back Celebration for good reason. It’s been 18 months since IBANYS had our community banks together in one place. During this time, we have seen community banks lead the way in supporting their customers, small businesses and most importantly their communities through a difficult time. All of you have significantly changed or adjusted your business model to accommodate the pandemic. This meeting is to celebrate you, your team and all the people you have supported in your community. We will cover a number of topics that will look at business before, during and the effect on banks and what to expect next. All C-level suite, Senior Management and Bank Boards are welcome.  Please join us for the Come Back Celebration.

MEET THE SPEAKERS

Keynote Speaker: Stephen A. Ingalls ("Steve"), President & CEO, Catalyzer The Post-Pandemic, Evolving Workforce and How You Should be Leading Them Stephen A. Ingalls joined the organization in 2010, later served as its President from 2011 to 2015, and now leads the team as its President and CEO. In addition to his strategic leadership, Mr. Ingalls leads curriculum development, program management, and oversees program execution, often facilitating engagements.   Prior to joining Catalyzer, Mr. Ingalls led and directed operations ranging from climate research in Antarctica and Greenland to attack helicopter deployments throughout the United States, Europe, and Korea. A 1982 graduate of the United States Military Academy at West Point, Lieutenant Colonel (Retired) Ingalls holds a Master of Science in Engineering Management from the University of Kansas, a Master of Military Art and Science from the United States Army Command and General Staff College at Fort Leavenworth, and a Master of Science in Aerospace Engineering from the Georgia Institute of Technology. He is a former Instructor and Assistant Professor of Aerospace Engineering at West Point and an Instructor of Tactics at the Command and General Staff College.   Highlights of his 22-year Army career include: facilitating the Army’s analog-to-digital transition in the late-1990s; the distinction of being the first brigade-level aviation operations officer in the Army’s history to lead a 4,400-soldier brigade combat team to a major deployment at the National Training Center in Fort Irwin, California; serving as a Longbow Apache Battalion Commander – responsible to form, field, train, and lead the fourth AH64D-equipped organization and first to deploy outside of the United States; and developing a 15-year strategic plan for over 30,000 Army forces throughout Korea to address Army transformation through 2015.   He won a NASA-American Society of Engineering Educators Fellowship to Johnson Manned Spaceflight Center in the summer of 1994, where he analyzed next-generation space shuttle designs. In 2010, Mr. Ingalls was admitted into Sigma Gamma Tau, the National Honor Society in Aerospace Engineering, and he received his certification as a Project Management Professional (PMP) from the Project Management Institute in 2011.   Leaving active duty in 2004, Mr. Ingalls transitioned his uniformed experience to business, supporting manufacturing and project management functions at a Kansas City-based architectural millwork firm, serving as the Associate Director for Administration at a National Science Foundation research center on climate change, and finally working for multiple federal contracting organizations as a Program Manager and Director of Business Development before assuming a full-time role at Catalyzer in late-2017. Today, his greatest joys are his marriage to Cara, mentoring his children into adulthood, and serving gleefully as Elijah’s, Adalynn’s, and Silas’ grandfather.

Keith Ash Senior Vice President Business Development, Strategic Resource Management 2021 Top Payment Trends for a Post Pandemic Recover Keith Ash has 25 years of payments expertise across issuer, network, and processor roles. Ash began his career with Household Bank, supporting the launch and growth effort of the GM Co-brand through Household Credit Services. He later joined First Data/Concord EFS where he was the SVP of Operations and Implementations for their Northeast Platform. Keith then worked for MasterCard for 14 years, where he gained extensive experience in roles ranging from Account Management to Sales, supporting regulated and unregulated issuers. His prior role at MasterCard was leading the New Business team for Community Financial Institutions. Keith joined SRM to expand the company’s payments acumen and will focus on serving regulated issuers

Upstate New York: Post Covid Market Perspective Gerald D. Verdi, President of Verdi Planning Company Mr. Verdi has worked in banking, finance, technology and strategic planning positions for over thirty-five years. He is a graduate of the State University of New York at Buffalo (B.A.) and the Pennsylvania State University (M.S.).

Bruce Paul, Managing Director Banking Customer Research Team, Rivel, Inc. The Pandemic Impact on Customer Loyalty Across New York, for You and Your Competitors Bruce Paul leads the Banking Customer Research team at Rivel Inc and founded the New York Banking Benchmarks (and 23 other States). He previously was the Global Head of Financial Services Research at the Nielsen Company and the US Head of Customer Experience Research at Greenwich Associates. He has spent the last 3 decades focused on banking customer behavior and has designed the brand tracking and customer experience programs at 7 of the top 15 North American banks and dozens of smaller institutions. A former Fulbright Scholar, Bruce has degrees in Political Economy, Cantonese, and Asian Studies from Yale-in-China (CUHK) and UC Berkeley.

Cannabis — An Emerging Market

Corey Massella, Managing Director UHY, LLC Corey has over 25 years of experience as an entrepreneur, tax and business advisor, and as a specialist in SEC accounting and audit services. Additionally, Corey has experience serving as a Private Equity and Technology Industry Group Practice Leader for a top 20 accounting firm.   Corey has successfully guided his clients through all facets of the mergers and acquisitions transaction cycle to help them make critical decisions while ensuring transactions are strategic and seamless. In 2015, He was selected as the winner of the SmartCEO award for Industry CPA Leader in New York. Corey has completed over 300 M&A transactions and was the lead partner at the firm awarded M&A Advisor’s Accounting/Due Diligence Firm of the Year award in 2017 as well as being nominated as Dealmaker of the Year by ACG New York and M&A Advisor.  Matthew VanDerbeck, Managing Director UHY, LLC Matthew VanDerbeck has more than two decades of experience in accounting and auditing, with extensive experience in the non-profit, governmental and privately held for-profit industries. While working for a Big Four accounting firm for 10 years, Matthew was able to further develop his experience working on larger non-profit entities (including colleges and universities, private schools, unions, governmental entities and other non-profits), non-public and public for-profit entities.   Matthew formerly headed the quality control practice for an accounting firm and served on the New York State Peer Review Committee.

Will Your Bank Emerge Stronger When the Liquidity Surge Recedes? Dan Elder, Managing Director, Eastern Region, IntraFi Network, LLC

Data Infused Marketing

Lou Costello, Director of Sales Spectrum Reach Over 20 years in the Marketing/Advertising Industry.

Michael Schuler,Director of Market Research and Insights Spectrum Reach  Over 15 years Conducting Market Research and Implementing Marketing Strategies.

Ben Collins, Account Executive at Spectrum Reach  Bachelors in Marketing and Over 10 years Conducting Data infused Marketing Campaigns.

MEET THE SPONSORS

The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services. ICBA Securities Corporation (ICBA Securities) a subsidiary of the ICBA (Independent Community Bankers of America) that was founded in 1989 following two years of intensive research by ICBA's Bank Services Committee. Based on the proposals submitted and lengthy interviews, the Committee selected Vining Sparks to serve as ICBA Securities' exclusively endorsed broker.   As ICBA Securities is owned by the nation’s largest trade association for community banks, it has a commitment to return all of its profits to the industry, in the form of royalties, sponsorships, or dividends. Through 2020, it had reinvested over $48 million back into its supporting state/regional partners or into the ICBA that it has received from Vining Sparks. Six of the seven ICBA Securities board directors are influential community bankers.   We are also proud be to the endorsed broker-dealer for over 30 community bank state associations. Portfolios Morph Investment securities have undergone big changes this year. By Jim Reber Click here to read article

IBANYS Preferred Partner T. Gschwender & Associates, Inc. is a diversified consulting company that has been providing services to financial institutions and businesses in the Northeast United States since 1984. Our financial institutional clients include small community banks and credit unions with less than $100 million in assets to much larger regional institutions with over $5 billion in assets. Our business clients include small sole proprietorships to middle-market privately held corporations.   For our financial institutional clients, we like to describe ourselves as a highly sophisticated "Credit Department," able to handle all functions from initial borrower due diligence to collateral liquidation, and everything in between. Our goal is to provide these services in a timely and cost effective manner, allowing our clients to tap into resources they would not otherwise be able to employ internally.   For our business clients, we provide Accounting/Bookkeeping, Business Advisory, Business Valuations, and Tax Services. We also leverage on our numerous banking clients to assist businesses obtain loans at a reasonable rate. Whether you are a new business, growing rapidly, or experiencing some challenges, our Associates can help!   Our Consultants all have extensive banking and corporate management experience. Some of our Associates have been with us since the company was started, and our current staff provides a wide depth of experience, having held high level positions within banking, accounting, and regulatory institutions. With expertise spanning "both sides of the street", the company's Associates provide a well balanced and thorough approach to all that we do.   T. Gschwender & Associates, Inc. is a privately held company that was started by Tom Gschwender on November 9, 1984 and purchased by Bharpur "Bo" Singh on April 1, 2008. IBANYS Preferred Partner About Pentegra   Unparalleled Governance Founded by the Federal Home Loan Bank System in 1943, we do not answer to shareholders, we answer to our clients. Our boards of directors are made up of our clients, Presidents and CEOs, who use our services and place their own futures in our hands. Our Boards serve with excellence and the highest ethical standards and set the very same ones for our organization.   Unmatched Fiduciary Protection With a legacy built serving as an institutional fiduciary, Pentegra offers a level of fiduciary protection that is unmatched in the industry. We deliver an unrivaled level of oversight and accept a higher level of responsibility. Our fiduciary heritage shapes our culture.   No Conflicts of Interest We are not a “Wall Street” firm, or owned by a larger financial services organization, mutual fund or insurance company. As an independent organization, governed by our clients, our focus is to enhance the value of our clients. We partner with firms as a trusted resource to bring an objective perspective and maximum flexibility to every opportunity—to deliver the very best solution for clients.   Client-driven Culture We were founded by our clients, are owned by our clients, and governed by our clients – simply, we exist for our clients. When we say we are “client driven,” it is not an empty marketing tagline, it’s our DNA. Our solutions begin and end with each client’s real life needs, objectives and goals. Today, we have more than 100 clients who have been with us for over 30 years and maintain a 98% client retention rate.   Deep Expertise and Bench Strength Our team is comprised of highly-skilled professionals—ERISA attorneys, Enrolled Actuaries, Certified Plan Consultants and specialists in investments, education and compliance. The advantage—access to multiple experts guided by a relationship management team that eases the way for you. Comprehensive Solutions Whether you are a financial advisor seeking a fiduciary outsourcing retirement solution for your clients, a client seeking a benefits financing solution to fund an executive benefit plan, or an institutional investor looking for help with your balance sheet, our structure and collaborative culture enable us to align our full resources behind your needs. We deftly draw on our collective resources and team of highly skilled professionals to create exceptional client solutions.

The Federal Home Loan Bank of New York (FHLBNY) helps community lenders in New Jersey, New York, Puerto Rico and the U.S. Virgin Islands advance housing and community growth. The FHLBNY is part of the congressionally chartered, nationwide Federal Home Loan Bank System, which was created in 1932 to provide a flexible credit liquidity source for member community lenders engaged in home mortgage and neighborhood lending. The FHLBNY increases the availability of mortgages and home finance to families of all income levels by offering high-value correspondent and cash management services to assist our members in more effectively serving their neighborhoods and meeting their Community Reinvestment Act responsibilities. Our Mission The mission of the Federal Home Loan Bank of New York is to advance housing opportunity and local community development by supporting members in serving their markets. The FHLBNY meets our mission by providing our members with access to economical wholesale credit and assistance through our credit products, mortgage finance program, housing and community lending programs, and correspondent services to increase the availability of home finance to families of all incomes. Our Core Values Our Core Values formalize the principles that have long reflected our culture and guided our decision-making: Focus on members Foster a collaborative and responsive work environment Support diversity and inclusion in a respectful manner across our business Uphold our integrity and promote accountability Be results-oriented and mindful of our risk profile ROOSEVELT & CROSS AT A GLANCE Entirely employee-owned and directed The firm is structured into underwriting, trading, sales, public finance, project finance, and research departments 100% of our firm’s capital is committed to municipal securities Top ranking municipal bond underwriter in New York, New Jersey, and New England Co-senior manager and co-manager on major issues throughout the country Consistently ranked #1 underwriter of education bonds in New York Leading underwriter of short-term financings in New York Quantitative expertise in structuring and executing complicated financial transactions Strong distribution capabilities across major and mid-size institutional accounts, professionally managed retail accounts, and high net worth individual accounts The main office is located in New York City with branch offices in Buffalo (N.Y.), West Hartford (C.T.), East Greenwich (R.I.), Boston (M.A.), and Warren (N.J.)

PROFESSIONAL CONSULTING SERVICES TO BANKERS BY BANKERS The CEIS Review mission is to be the preeminent provider of independent outsourced loan review, loan portfolio stress testing, ALLL methodology validation or refinement, as well as being a provider of related commercial credit management techniques to financial institutions worldwide. Our commitment is to commercial banks, savings banks, credit unions, foreign branches and agencies, multinational organizations and other firms requiring a third party assessment of loan portfolio quality and process. Our commitment to excellence includes delivering clear & concise reporting, utilizing cutting edge credit and portfolio management techniques, maintaining an objective viewpoint, providing adequate flexibility to clients needs and consistently staying ahead of emerging industry and regulatory matters. Ultimately, we are dedicated to our client’s success and growth. Moving businesses upward, outward and onward   Sometimes, the audacious is worth pursuing. For more than 65 years, Pursuit, formerly known as New York Business Development Corporation, The 504 Company and Excelsior Growth Fund, has offered innovative lending solutions to help business owners in NY, NJ and PA follow their dreams.

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. Grow your business with the best content, insights, products & people. No matter who you need to reach, we’re here to help you connect. Work with a local advertising expert or create your campaign online.

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.    Today, The Baker Group is one of the largest independently owned securities firms. After decades of industry service, they continue to grow and adapt in order to better serve their financial partners. Onovative, an automated marketing and communication software provider, put controls back in the hands of bank marketers. Onovative’s affordable marketing software for planning, automation and execution empowers you to manage data for strategizing throughout the consumer lifecycle and engage with consumers through multiple channels. With software that integrates directly with your existing core banking systems, Onovative helps banks drive results by bolstering growth with their current account holders and within their markets.

Serving clients is our fundamental purpose   As a leading investment bank, we enable growth and success for our clients through deep sector expertise, candid advice and a differentiated, highly productive culture.   OUR VALUES   We create and implement superior financial solutions for our clients. Serving clients is our fundamental purpose. We earn our clients’ trust by delivering the best guidance and service. Great people working together as a team are our competitive advantage.   As we serve, we are committed to these core values: Always place our clients’ interests first. Conduct ourselves with integrity and treat others with respect. Work in partnership with our clients and each other. Maintain a high quality environment that attracts, retains and develops the best people. Contribute our talents and resources to serve the communities in which we live and work. Since 2001, Bankers Healthcare Group (BHG) has been an industry-leading financing partner of healthcare practitioners and other highly-skilled professionals, providing over $7 billion in working capital loans to tens of thousands of borrowers. Leveraging nearly 20 years’ worth of historical borrower data, BHG only targets high-earning borrowers and top-tier credit profiles. These loans are then packaged and sold to community banks throughout the country who make up the BHG Bank Network– with 1,190+ having trusted in this program for nearly two decades. Banks have access to quality medical and professional loans through the BHG Loan Hub, a secure, state-of-the-art delivery platform with a variety of purchase options. Banks can quickly analyze complete, compliant credit files, and make informed purchasing decisions easily, with consistent loan packages. By joining the BHG Bank Network, members have the opportunity to invest their excess liquidity in these loans, strengthening and diversifying their portfolio.

At Wolf, we leverage over 100 years of experience to address the business challenges of today. Our innovative public accounting, risk management, and consulting services provide unparalleled guidance to organizations of all sizes across industries, regions, and the globe. We work with you as a trusted partner and expert, building strong relationships for lasting success.   Our culture of innovation and respect extends to each of our offices and employees. From impactful development opportunities and philanthropic events, to a generous benefits package and work-life balance, our inclusive atmosphere empowers employees to grow, exceed goals, and give back. Since 1998, Main Street, Inc. has partnered with more than 2,100 financial institutions to enhance account holder relationships with affordable, simple and efficient checking programs. By focusing on serving community banks and credit unions, we uniquely understand the needs and values of community financial institutions. Whether it’s to improve service to account holders, streamline team’s workload or boost profitability, we are here to help you achieve your goals. We deliver cost-effective, straightforward check products at competitive prices coupled with a seamless level of service. Our check program is easy to manage and leaves out the hidden fees you’ll find in other programs. In 2017, Main Street recognized a common need from both our new and longtime customers – to enhance growth with current account holders and within the markets our financial institutions serve. Our team of marketing experts expanded our offerings to include simple, turnkey, data-driven marketing solutions to save cost and time. This ultimately led us to join forces with Onovative, an automated marketing software provider, to further enhance our marketing services. In 2020, we officially added Onovative to the Main Street family. Onovative has been serving community banks and credit unions with affordable marketing software for planning, automation and execution since 2012. From data management, to consumer lifecycle strategy, to consumer engagement, Onovative’s customized marketing and communication software integrates with existing core banking systems to help financial institutions achieve their targeted goals. Learn more at onovative.com.

Since 2001, Bankers Healthcare Group (BHG) has been an industry-leading financing partner of healthcare practitioners and other highly-skilled professionals, providing over $7 billion in working capital loans to tens of thousands of borrowers. Leveraging nearly 20 years’ worth of historical borrower data, BHG only targets high-earning borrowers and top-tier credit profiles. These loans are then packaged and sold to community banks throughout the country who make up the BHG Bank Network– with 1,190+ having trusted in this program for nearly two decades. Banks have access to quality medical and professional loans through the BHG Loan Hub, a secure, state-of-the-art delivery platform with a variety of purchase options. Banks can quickly analyze complete, compliant credit files, and make informed purchasing decisions easily, with consistent loan packages. By joining the BHG Bank Network, members have the opportunity to invest their excess liquidity in these loans, strengthening and diversifying their portfolio.

Going on the Boat Tour? What you will see....

Boldt Castle At the turn-of-the-century, George C. Boldt, millionaire proprietor of the world famous Waldorf Astoria Hotel in New York City, set out to build a full size rhineland castle in Alexandria Bay, on picturesque Heart Island. The grandiose structure was to be a display of his love for his wife, Louise. learn more here

Yacht House The Boldt’s family yachts and enormous houseboat were housed here in the slips 128 feet long. Towering bay doors on the decorative facade provided access to the river. The building, rising 64 feet, also featured a shop to build racing launches and quarters for crew and staff. The grandeur of the Gilded Age is fully embodied in the structure’s shingle-style architecture, tremendous towers and spires and the steep-pitched gables. Learn more here

ASSOCIATE MEMBERS & PREFERRED PARTNERS

IBANYS WELCOMES OUR NEWEST ASSOCIATE MEMBER Verdi Planning Company is a consulting/research firm concentrating on community and regional bank delivery network optimization, branch planning and transformation, digital banking, customer channel use evolution, technology adaptation and justification and customer financial position and needs. Verdi Planning Company employs a detailed inter-disciplinary, data driven approach that yields pragmatic implementable and profitable plans. Learn more here

Atlantic Community Bankers Bank Sells BITS Telecommunications Services (CAMP HILL, PA – 31 August 2021) — Atlantic Community Bankers Bank, a financial institution that provides correspondent banking, lending, investment, and treasury management services to community financial institutions, today announced that it has sold ACBB-BITS, LLC (“BITS”), the Bank’s telecommunications and network services provider subsidiary, to New Era Technology, Inc. (“New Era Technology”). The sale supports company President and CEO Craig Howie’s growth strategy to enhance community financial institutions’ customer experiences with the Bank. Read Article Here

Too Much Liquidity, Not Enough Yield? Learn the bond math that will help you take control of your portfolio performance. Thursday, September 23 at 11:00 AM ET Your balance sheet has just been through one of the craziest times in banking and now you have to figure out how to deal with all the cash that’s been piling up. Are you worried about margin compression? If you invest in long bonds and rates go up, what will your ALCO/board say? What will they say, if rates stay low and you stayed in cash?  In 60 minutes, you will learn: How to accurately measure the impact of staying in cash if rates go up or stay the same (or even go down!)  What NOT to buy from a list of investments that we are seeing pitched to investors across the country. A time-saving, disciplined process to making better long-term investment decisions. Click here to register

Staffing shortages are beginning to impact Customer Experience at NY Banks Blind interviews with tens of thousands of NY State households and businesses reveal a decline in key metrics The number of households that say their bank is just not responsive has almost tripled in the past 18 months Retail customers also reported a decline in staff training in most areas of the state Businesses across the state have also seen a decline in responsiveness but not at much. The percentage who say their bank is no longer responsive has only doubled (!) Not all banks have followed the trends, though. A few, like Chemung Canal, Investors, US Metro, and Northwest, scored very high in responsiveness according to their own customers. To see your local data: bpaul@rivel.com.

Cannabis Banking in New York: Practical Guidance Tuesday, September 28, 2021 2PM EST | 2 Hours   In March of 2021, New York became the 15th state to legalize adult-use cannabis — joining a growing number of states that have expanded from their initial medical-only programs. While retail sales aren’t expected to start until 2022, New York is predicted to become one of the nation’s largest markets in short order. To help financial institutions operating in New York to prepare for a new, multi-billion dollar industry, the Independent Bankers Association of New York State and Green Check Verified are hosting the complimentary webinar, “Cannabis Banking in New York: Practical Guidance,” on September 28 at 2pm (EST).  Taught by Green Check Verified subject matter experts, this three part educational event covers the following topics:   Session 1: The Fundamentals of Cannabis Banking (60 minutes) Essential terminology: cannabis/marijuana/hemp, THC/CBD Defining cannabis businesses and identifying their needs Federal and state cannabis law, guidance, and regulations FinCEN’s 2014 marijuana banking guidance: what you need to know Locating and onboarding cannabis businesses Ongoing monitoring and working with your examiner Session 2: Special Considerations in New York (30 Minutes) Every state’s legal cannabis market has its own particular challenges and opportunities, and New York is no different — especially given the potential size of the program. In this session, we explore where the New York market is headed based on comparable state programs, and what banks operating in the state need to know to safely and effectively work with this industry.   Session 3: Quantifying the Risks and Rewards (30 minutes) We’ll review a case study, based on an institution that’s currently banking cannabis in a state with a new adult-use program, and use that information to conduct both a financial modeling and risk assessment exercise. From the financial modeling exercise, you will learn to identify the products and services you can (and should) offer to cannabis businesses beyond simply accepting deposits, as well as what fees can be assessed. We’ll also review the primary costs associated with running a program. The risk assessment exercise will not only help you provide a point-in-time assessment of your readiness to bank the industry but also highlight the operational decisions that must be made when working with cannabis-related funds.   Session 3: Special Considerations in New York (30 Minutes) Every state’s legal cannabis market has its own particular challenges and opportunities, and New York is no different — especially given the potential size of the program. In this session, we explore where the New York market is headed based on comparable state programs, and what banks operating in the state need to know to safely and effectively work with this industry.    Takeaways Copies of all presentation materials A cannabis banking policy template A copy of the sample financial model developed during the session A copy of the sample risk assessment developed during the session 90-day access to a recording of both sessions Audience Board members CEO CFO Compliance and risk officers Branch operations managers Business development teams Click here to register

News from ICBA

REGISTRATION NOW OPEN Leadership is a lifestyle! The ICBA LEAD FWD Summit is back for its ninth year and is your ticket to becoming the best leader you can be. Register Here

Community bank customers weigh in on IRS monitoring Community bank customers have joined the industry in expressing opposition to the Biden administration’s proposal to require banks to report their customers’ account information to the IRS.   Consumer Alert: Consumers have already sent thousands of messages to their members of Congress opposing the plan via ICBA’s new Consumer Alert webpage.   Consumer Outreach Vital: ICBA is encouraging community bankers to direct their customers to the site to demonstrate public opposition extends beyond banks themselves.   Custom Resources: Meanwhile, community bankers are using ICBA’s customizable email and social media content to raise opposition, with the #KeepMyBankingPrivate hashtag already garnering hundreds of thousands of impressions.   Details: ICBA President and CEO Rebeca Romero Rainey details the multi-faceted consumer campaign—including ICBA’s custom resources—in a post on Main Street Matters and LinkedIn.

Portfolios Morph Investment securities have undergone big changes this year. By Jim Reber If there’s a constant in the world of a community bank investment manager, it’s disappointment. If you buy a bond today and yields go down tomorrow, you wish you’d have bought more; if yields go up, you wish you had bought none. If your overall portfolio has unrealized gains, you lament the poor yields that are available; if you are presented with attractive rates on new offerings, it means you’ve got losses on the balance sheet.  Click here to read article

WEBINARS

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.  Click for full list of webinars

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.)

Albany Update

Governor Hochul has nominated Adrienne Harris as Superintendent of Financial Services. She will require NYS Senate confirmation. Harris was Special Assistant for Economic Policy in the Obama White House, and also served at Treasury during that administration. “With Adrienne Harris as our state’s top financial regulator, New Yorkers can rest assured that this administration isn’t simply focused on just protecting consumers but on advancing an equitable economic recovery that seeks to lift up all citizens, not just the privileged few,” Hochul said. Harris most recently was General Counsel, Chief Business Officer and Advisor at States Title, Inc. (now DOMA), and a senior advisor at the Brunswick Group, advising financial institutions, fintech companies and venture capital firms. She previously worked at the law firm of Sullivan & Cromwell. https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202108312.  Governor Hochul announced Tuesday night she is signing a proclamation to extend the eviction moratorium. Due to the pandemic, it will be extended until January 15, 2022. The moratorium was supposed to expire at 11:59 Tuesday night. The State Legislature reconvened at Noon today for an extraordinary session called by Governor Hochul to amend and extend the state’s eviction moratorium and address the slow disbursement of Emergency Rent Relief Program (ERAP) funds.  The New York Times reports.  Senate Deputy Majority Leader Gianaris said lawmakers will fix the law to comply with the Supreme Court’s decision earlier this month. Read More.  Other possible agenda items could reportedly include confirming Governor Hochul’s nomination of Adrienne Harris as Superintendent of Financial Services, and approving the Governor’s Governor Cannabis Control Board appointments. Assembly Minority Leader Barclay and Senate Minority Leader Ortt expressed concerns about “extending, yet again, a moratorium that has severely inhibited the state’s housing market and threatens to further infringe on the rights of already struggling property owners.” They noted the state, “has sat on billions of dollars meant to be distributed through the Office of Temporary Disability Assistance (OTDA) to landlords and tenants, but an overwhelming portion of the funds remain untapped.” Republican leaders wrote to Gov. Hochul, the Chief Administrative Judge of the Courts and the OTDA Commissioner (available here) to urge immediate steps to allow tenants and landlords to receive critical financial relief and avoid potential evictions. Senate Banks Committee Chairman Sanders has introduced legislation (S.5473C, Sanders/A.7922A, Walker) intended to “help stop unjust home foreclosures” to overrule the New York State Court of Appeals decision in Freedom Mtge. Corp. v Engel. https://nystateofpolitics.com/state-of-politics/new-york/ny-state-of-politics/2021/09/01/why-lawmakers-are-worried-about-mortgage-foreclosures State Senator Brian Benjamin (D-Harlem), named by Governor Hochul as her pick for Lt. Governor, will be sworn in after Sept. 6 so that the special election to fill his State Senate seat will align with the general election in November.

Washington Update

ICBA Chairman (and IBANYS board member and former Chairman) Robert Fisher is scheduled to testify at 1 p.m. (Eastern time) today at a House Small Business Committee  hearing  on what’s next for Paycheck Protection Program forgiveness. Hearing: The president and CEO of Tioga State Bank in Spencer, N.Y., will discuss community bank PPP lending, loan forgiveness, and efforts to streamline the forgiveness process. Background: Community banks were the top PPP lenders, accounting for some 60 percent of the program’s total loan amount and 58.3 percent of the nearly 49 million jobs saved by the program. Resources: Additional PPP information is available on ICBA's PPP Resources page. The Financial Times reports on how community banks have been “irreplaceable” during the pandemic, including by leading the Paycheck Protection Program response. How US community banks became 'irreplaceable' in the pandemic.  The report notes that the community bank relationship lending model and small-business focus is well-suited to the PPP and has expanded goodwill among consumers.  ICBA (and IBANYS) have continuously advocated for needed PPP reforms while promoting to the national media the profound leadership of community banks, which accounted for some 60 percent of the PPP’s total loan amount and 58.3% of the nearly 49 million jobs saved by the program. ICBA’s efforts continue tomorrow with ICBA Chairman Robert Fisher scheduled to testify at a House Small Business Committee  hearing  on what’s next for PPP forgiveness. He will discuss community bank PPP lending, loan forgiveness, and efforts to streamline the forgiveness process. Additional PPP information is available on ICBA's PPP Resources page. The House Financial Services Committee released its  September schedule  of hearings and markups. The schedule includes hearings on protecting renters, consumer access to personal financial data, the Treasury Department and Federal Reserve pandemic response, and the impact of consolidation and nonbank competition on the future of banking. House Speaker Pelosi supports legislation to expedite federal rental aid to tenants and landlords after a recent Supreme Court ruling that struck the down the Biden administration's eviction moratorium. Pelosi lauded efforts by House Financial Services Chair Waters (D-CA) seeking to reform the nationwide emergency rental assistance program, as state and local governments have been slow to distribute federal aid amid a housing crisis that has worsened amid the pandemic. https://thehill.com/policy/finance/570081-pelosi-backs-bill-to-expedite-rental-aid-after-eviction-ruling?mkt_tok=ODUwLVRBQS01MTEAAAF_OwuEszCLaqjbxOIcnAO6DPqioJr6SWQk6MgnxX0FX4vYL-7WFaRxeK8ttSbBJ3iH54-64AC_Z3MY8HvY_xa_FX5aLSuC0C_BZhfeTaNsh0ev Federal regulators issued a voluntary guide to help community banks conduct due diligence on financial technology companies. Key Areas: The guide covers six key areas of due diligence to consider when exploring arrangements with fintech companies: Business experience and qualifications; Financial condition; Legal and regulatory compliance; Risk management and control processes; Information security, and Operational resilience. Resources: The guide also spotlights practical sources of information for evaluating fintech companies and is consistent with the FDIC’s Guidance for Managing Third-Party Risk. The FDIC is taking a multi-pronged approach to promote innovation and technology in the banking sector, FDIC Chairman Jelena McWilliams said. In remarks on the importance of community banks to local communities, McWilliams cited her agency’s: Mission-Driven Bank Fund to channel investor funds to minority depository institutions and community development financial institutions; Voluntary third-party certification program to help reduce the cost and uncertainty of introducing new technologies, and Rapid phased prototyping tech sprint focused on addressing the burdens that call reports place on supervised institutions and making the reports more valuable to the FDIC. ICBA continues encouraging community bankers to use its Be Heard grassroots action center to urge opposition to the IRS reporting proposal and to express opposition in district meetings during the August recess.