IBANYS Weekly E-Newsletter |
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2022 Convention Sponsors - to date
- Bankers Healthcare Group (BHG)
- CEIS Review
- COCC
- Federal Home Loan Bank of NY
- Hartman Associates
- ICBA
- Neach
- Pillar+Aught
- Piper Sandler
- Plante Moran
- Pursuit
- Roosevelt & Cross
- SHAZAM
- Shield Compliance
- Sunwealth
- T. Gschwender & Associates
- The Baker Group
- Wolf & Co.
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TALK BUSINESS WITH KEN KRAETZER — A Talk with Robert Fisher, On Year as National Chair of the Independent Community Bankers of America
"Bank with a community banker, we are high tech and high touch relationship lenders" Robert Fisher, president and CEO of Tompkins County NY based Tioga State Bank, a veteran of the US Air Force, describes his year as National Chair of the Independent Community Bankers of America with Ken Kraetzer of #cbsiTalkingBusiness podcast.
Key Topics:
- Meeting Community Bankers across country
- Chairing recent ICBA National Convention
- Saving 20 million jobs with PPP loans and other efforts during pandemic.
- Presenting to Members of Congress
- IRS Data Collection
- Maintaining personal financial privacy
- Closing ILC Loopholes
- USPS Banking Services
- Serving unbanked customers
- Encouraging Financial Literacy
- Being "Leading Edge" on Technology
- ICBA Venture Centure Fintech Accelerator
- Initiatives on Cyber and fraud
- ICBA Community Banker University
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During our discussions in Washington this week with the offices of Senators Schumer and Gillibrand and key members of our New York House delegation, we not only discussed issues and priorities of community banks (Here are the issues -- see our Washington section below) – we also told our stories of how pivotal community banks and relationship banking are to our state and local economies and communities.
In New York State, community banks:
- Make up nearly 88% of all operating banks, and operate 41% of all bank branches;
- Hold 12.6% of deposits at bank branches ($308,570,505,000);
Nationally, community banks:
- Have nearly 50,000 locations
- Employ nearly 700,000 Americans;
- Constitute 99% of all banks.
- Hold $5.9 Trillion in assets, $4.9 Trillion in deposits and $3.5 Trillion loans for consumers, small businesses and the agricultural community.
Community banks reinvest local deposits into the “Main Street neighborhoods” we serve, help create jobs, foster innovation, and support and fuel customers’ dreams. As Senate Banking Committee member Rounds (S.D.) said, “You defend Main Street. . .you should be proud of who you are, and what you do.”
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ICBA provided new national and state-level polling data showing Americans in all 50 states view community banking favorably. Available on ICBA’s new “Public Opinion of Community Banks” dashboard, the ICBA polling conducted by Morning Consult found:
- More than three in four U.S. adults say locally based lending decisions are important when determining where to bank.
- 69% of U.S. adults cited the importance of banking with a locally based financial institution.
- 70% cited the importance of personal banking relationships.
- 89% said it is important that their institution is part of the regulated banking system
- 61% said it is important that their financial institution does not receive taxpayer subsidies—raising questions about public support for credit unions’ tax and regulatory exemptions.
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In Albany, Governor Hochul has chosen a new Lt. Governor, there are just 13 legislative days left in the 2022 session, the State Comptroller released his analysis of the state budget and raised some questions, and the DFS Superintendent issued new guidance to New York State-regulated virtual currency entities establishing the use of blockchain analytics tools as a best practice to prevent and manage financial risks and suspicious activities. See our Albany section of today's newsletter for details.
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IBANYS AND COMMUNITY BANKS OPPOSE THE PUBLIC BANK LEGISLATION AND WE ARE WORKING ON ALTERNATIVE SOLUTIONS TO THE STATE CREATING A PUBLIC BANK.
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IBANYS Annual Convention “Mobilized, Banking for the Future” is now just over six weeks away! Join us June 13 -15 at the Turning Stone Resort & Casino. Click here for more information. . . .for full details on all 2022 IBANYS meetings, visit: https://ibanys.net/meetings-schedule/.
-- John
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OTHER EVENTS/OPPORTUNITIES |
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There are two opportunities to be a part of something special. Both great events and both include inviting customers and/or provide a great reward for employees. |
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Buffalo Bills Alumni Foundation Gala and Golf weekend – July 22nd-23, 2022. Buffalo Bills Alumni raise money and give 100% of proceeds to charities in the Buffalo/Rochester region. Great 2-day event with former players and memorabilia. Please contact John Witkowski (johnw@ibanys.net) for registration and sponsorship information.
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Please Join Us for IBANYS’ 2022 Annual Convention — June 13-15, 2022 —
Turning Stone Resort & Casino, Verona, NY
It’s time to get back together again.
IBANYS' ANNUAL CONVENTION, "Mobilized, Banking for the Future" is being held at the Turning Stone Resort and Casino from June 13-15.
We have a few exciting days of networking, education and entertainment planned for our participants. The agenda is jam packed with great subject matter experts on a variety of topics that impact community banks today.
There are 30 exhibitor spaces available at the Tradeshow (over half have already been sold) and we anticipate that all the booths will be filled. Reserve your booth today, they are sold on a first-come-first serve basis.
Our event features opening and closing key-note speakers, Derek Williams, ICBA Chairman Elect will address the attendees on Monday evening and Jack Hubbard, Chief Experience Officer from St. Meyer and Hubbard close out the meeting on Wednesday.
Join us Tuesday evening after dinner as Michael Gutenplan, “Mentalist” entertains us with a fun, interactive, and high-energy show designed to entertain the most skeptical, demanding, and sophisticated audiences.
PAC Auction - Please consider donating an item for this event, (see page 11) of the brochure for suggested items. This is an important part of our convention and provides a perfect opportunity to showcase items from your region, while supporting an essential committee that focuses and advocates for community banks in NYS legislative affairs. The PAC auction takes place on Tuesday evening during our cocktail reception which is held on the Trade Show floor. Items are placed in exhibitor booths to be viewed and bid on.
It’s been more than two years since we have had an opportunity to get our bankers, preferred partners, associate members and sponsors together. We are excited to share with you, that the response to date, has been fantastic!
Attached is the convention brochure, containing everything you need to know about our signature event of the year including registrations forms, program agenda, hotel booking, and dress attire. PLEASE REGISTER FOR THE ANNUAL CONVENTION BY COMPLETING THE APPROPRIATE REGISTRATION form (Attendee or exhibitor) and email (lindag@ibanys.net) or mail to Linda Gregware, 194 Washington Ave., Albany, NY 12210.
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Guidance for New Directors
Thursday, June 16 — 11:00 - 12:30 p.m.
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This session will focus on fundamental board governance issues and is designed for Directors with less than five years’ experience.
This session will be hosted on MS Teams
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MEET THE CONVENTION SPEAKERS |
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MASTER MENTALIST, MAGICIAN, ENTERTAINER |
Awarded Best Club Entertainment by Boardroom Magazine (2021 Excellence in Achievement Awards), consistently named by the Corgentum Survey as the Top Corporate Entertainers (2017-2022), winner of the Los Angeles Award for Best Psychic Entertainer (2019-2022), named a "Best Thing to Do" by Time Out New York, and praised by The New York Times, LA Times, Variety, and the Washington Post, Michael’s award winning magic and mentalism will energize, enthrall, and entertain your group.
With over 20 years of professional experience, Michael knows how to engage and entertain the most sophisticated and skeptical audiences. He can be seen reading minds and performing his amazing feats of prestidigitation at private clubs and exclusive corporate and private events around the world.
Michael has been a featured performer at the world famous Magic Castle in Hollywood, starred in his own show at Six Flags Magic Mountain, advised film, TV, theater, and theme park productions as a magic and psychic consultant, and received rave reviews for his one-man Off-Broadway show "Extraordinary Deceptions." He is a third generation psychic, a proud member of the Psychic Entertainers Association, and a performing member of The Academy of Magical Arts at the Magic Castle.
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ASSOCIATE & PREFERRED PARTNERS |
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Economic Update: Deciphering Late April Data
April 22, 2022 — This week the market received a slew of economic data. Let’s make sense of it all
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Friday, May 13 at 10:00 am ET
Duration: 45 minutes
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Grab a beverage and join our monthly discussion series on all things CECL. We'll begin each session by addressing the latest questions and concerns we've received from banks, then open things up for an audience Q&A — and hear how your CECL compliance work is going, clarify misinformation, swap suggestions and more. Each session will be different, and any banker can attend one or all, whether you use our CECLSolver tool (part of QwickAnalytics) or not. Just register to let us know you'll attend.
Time's Almost Up for CECL: See How CECLSolver Can Help
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Our latest issue of “The Advisor”, framing our view and outlook for the economy, interest rates, markets, and key financial institution balance sheet management themes, is attached.
We present our strategies in Fixed Income, Equities, and ALM to help you navigate in the current environment.
This issue focuses on the economy as inflation remains the key economic driver, fixed income strategy with the Fed driving the bond market, equity strategy on managing through Fed induced market volatility, and ALM outlook for 2022.
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Solving CECL Compliance
Timeline, Practical Steps, Open Q&A
Thursday, May 18 at 10–11 am ET
Presented by Shawn O’Brien, President, QwickRate/QwickAnalytics
CECL compliance grows more pressing by the minute. Some banks are still designing their process for estimating reserves. Others have moved past methodology testing and are already rethinking their approach. No matter where you’re positioned on the readiness spectrum, you‘ll glean valuable takeaways from this webinar – like this reality: CECL doesn’t have to be so complicated or costly.
Join us for information and guidance, including:
- A timeline for meeting the implementation requirements
- Popular methodologies in use at various community banks
- Real-life strategies that proved successful – or disappointing
- How to run parallel paths of your current and CECL processes
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Estimating aids using Call Report and industry data (like the Fed’s spreadsheet-based SCALE tool)
You’ll leave the session with practical steps you can take to make the transition as simple as possible, with less impact to your team.
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Balance Sheet Management And Your Loan Portfolio
Tuesday, May 10 | 11 a.m. ET
ICBA Securities and its exclusively endorsed broker, Stifel, will present the "Balance Sheet Management And Your Loan Portfolio" webinar exclusively for the state associations that endorse ICBA Securities, as well as other community banks. This is the fourth edition in the 2022 webinar series.
Active loan portfolio management continues to be a valuable tool to maximize profitability, manage interest rate risk, and to manage concentration and liquidity needs. While institutions have historically used loan sales to manage desired liquidity levels on balance sheets, the current driver of activity is managing capacity and concentration within certain loan types.
Institutions are addressing stagnant earnings and net interest margin pressures by investing in loans that may not be available through organic loan originations. The economic environment, coupled with shocks in loan demand and changing funding profiles, has created balance sheet challenges that active loan portfolio management can help to address.
During this session we will discuss the options available to actively manage your institution's largest asset class and how it can help achieve your institutional goals. This webcast will review:
- Impact of the current rate environment
- Benefits of buying and/or selling loans
- Important criteria for loan sellers and buyers to consider
- How to manage concentrations and/or gain strategic liquidity from loan sales
Recent activity of loan trading by community banks
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Cost
There is no cost for Stifel customers and prospects.
Prerequisites
Those working as CEOs, CFOs, investment managers, directors, and anyone responsible for balance sheet or investment portfolio management who 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 Stifel 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: 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 its website: www.nasbaregistry.org
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The Great Escape
The bond market braces for the Fed’s wind-down of its balance sheet.
By Jim Reber, ICBA Securities
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If bond investors (you) were running low on things to worry about for the rest of the year, I’ve got some terrific news: The $9 trillion portfolio owned by our central bank will begin to shrink. Soon. And at a feverish pace, I might add.
We’re into new territory for a number of reasons. The most obvious is that the mountain is double its size the last time a wind-down started. Another reason is that inflation, in case it’s escaped your notice, is at a 40-year high. Still another is that consumers no longer believe that prices will get back into their 2%-per-year box they’ve been confined to for the better part of a decade. So, this high-wire act has some drama attached.
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IBANYS AND COMMUNITY BANKS OPPOSE THE PUBLIC BANK LEGISLATION AND WE ARE WORKING ON ALTERNATIVE SOLUTIONS TO THE STATE CREATING A PUBLIC BANK. With just 13 state legislative session days remaining, a number of key issues including establishing a state public bank and enabling local municipalities to establish their own local public banks are still under consideration. (Read IBANYS’s Memo in Opposition… also: Read IBANYS Background & Talking Points Opposing this legislation.) There is also a proposal to conduct an independent “feasibility study” of the concept of public banking, after which DFS would eventually make the final decision. IBANYS is working to provide alternative solutions and has proposed possible approaches to help meet the needs of unbanked and underbanked communities using various existing vehicles.
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Some homeowners facing foreclosure would get relief under a bill passed by the state Legislature and now heading to Gov. Kathy Hochul’s desk for either her signature or veto. She has not indicated what she will do. New York Focus reports.
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Gov. Hochul named two-term Congressman Antonio Delgado (D-Hudson Valley) as her next lieutenant governor, succeeding Brian Benjamin who resigned after being indicted. Benjamin removed himself from the ballot Monday night after the Legislature passed a law to allow political nominees charged with a crime to vacate a party ticket. Delgado will now run as Gov. Hochul's running mate in the statewide Democratic primary on June 28. Read More. Delgado is a Rhodes scholar, a Schenectady native, a member of the Upstate Basketball Hall of Fame and a graduate of Harvard Law School. Read More
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A special election for the 19th District seat must be set within 10 days of Delgado's resignation and must be held within three months. Possible Democratic candidates could include Ulster County Executive Pat Ryan, who lost a primary to Delgado 2018, and State Senator Michele Hinchey, whose late father Maurice Hinchey served in Congress for 20 years, and in the State Assembly. The announced GOP candidate for the November election is Dutchess County Executive Marc Molinaro. Read More
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Democratic officials are making a last-minute appeal to the federal courts after the top state court in New York rejected the lawmaker-drawn congressional maps as an unconstitutional gerrymander. Read More. Democratic lawmakers are not ruling out pushing back all primaries in New York to August amid the latest legal challenges to the state Assembly's new district lines. Read More. However, Gov. Hochul said the state should not move any more primaries.
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New York State DFS Superintendent Harris today issued new guidance to New York State-regulated virtual currency entities establishing the use of blockchain analytics tools as a best practice to prevent and manage financial risks and suspicious activities. Here is a copy of the press release (https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202204281). You can read the blockchain analytics guidance is on the DFS website.
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State Comptroller DiNapoli’s office released its analysis of the $220.5 bullion state budget. The state’s coffers this year were bolstered by higher-than-expected tax revenues and federal pandemic aid. DiNapoli said the big question is whether the state can sustain this record-setting spending from year to year, noting: ‘Part of the answer to that still remains to be addressed because the next piece of what we need to see is a state financial plan that the Division of Budget will be releasing in the next few weeks. That will really look to the out-years and identify the revenue that’s projected to back up the spending commitments that are being made.” https://nystateofpolitics.com/state-of-politics/new-york/politics/2022/05/03/new-york-comptroller-on-the-state-budget
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This week, IBANYS was in Washington, D.C. with a contingent of New York community bankers to participate in ICBA’s 2022 Capital Summit. As part of the program, we coordinated a series of meetings with the offices of Senators Schumer and Gillibrand and key members of the New York Congressional Delegation on the House Committees on Financial Services, Small Business, Agriculture, Ways & Mean, Budget, Energy & Commerce and Homeland Security. We discussed a number of priority issues (Here are the issues) including: Our opposition to SBA direct lending. . .Our support of the ECCORA Act (H.R. 1977/S. 2202) to provide lower interest rates and better terms on rural loans by providing that interest on bank loans secured by farmland and homes in rural communities is tax exempt. . .Our support of the SAFE Harbor for Legal Cannabis Banking Act (H.R> 1996/S. 910) to create a federal safe harbor for banking legal cannabis-related businesses. (The House has passed it six times with bipartisan support, but it has still not moved in the Senate.). . . Our support of the “Close the Industrial Loan Company (ILC) Loophole Act” (H.R. 5912) to preserve the longstanding separation of banking and commerce. . .Our support of congressional review of the National Credit Union Administration (NCUA) and Farm Credit Administration (FCA) and the modernization of the tax code to restore a balanced, competitive financial landscape to protect consumers, serve small businesses and enhance revenue for federal, state and local governments. . .and, our opposition to a U.S. Central Bank Digital Currency (CBDC), which would divert deposits from community banks to the Fed. IBANYS joins ICBA in urging community bankers to send in grassroots messages to their members of Congress on these legislative priorities. ICBA’s Be Heard grassroots action center has the customizable message.
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ICBA released its legislative and regulatory policy objectives for 2022 during the ICBA Capital Summit. Policy Resolutions: ICBA’s 2022 Policy Resolutions focus on promoting a balanced and competitive financial services landscape, advocating tailored laws and regulations for community banks, championing equitable access to the financial system, protecting safety and soundness, and strengthening the industry’s political voice.
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ICBA has issued a “customizable op-ed” that community bankers can use to raise awareness of credit union acquisitions of community banks. The op-ed—which is available in Microsoft Word so community bankers can personalize and distribute it to local news media—cites the harmful impact of the acquisition trend on local customers and tax revenues. The custom op-ed is available on ICBA’s Wake Up page. It follows last week’s American Banker op-ed on credit union acquisitions by ICBA Chairman Brad Bolton. While credit union advocates support credit unions leveraging their tax exemption to acquire community banks, these subsidized transactions harm local communities. ICBA has urged Congress to build on state actions to curb this trend by investigating at the federal level. Read more.
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ICBA is also running a digital campaign featuring a recently released ICBA video urging Americans to advocate congressional hearings on how credit unions are taxed and regulated. Community bankers can continue urging Congress to hold hearings on the credit union tax exemption using a customizable message to lawmakers on ICBA’s Wake Up page and its Wake Up Messaging Playbook.
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The 2022 ICBA Capital Summit also featured a Q&A session with Consumer Financial Protection Bureau Director Chopra, who discussed: relationship banking; consolidation; nonbank providers; regulatory burden; 1071 small-business data collection; FedNow, and more. Community bankers also met with FDIC Acting Chairman Gruenberg, Acting Comptroller of the Currency Hsu, Federal Reserve Deputy Director of Supervision and Regulation Jennifer Burns, and the Fed's Senior Associate Director for Consumer Protection and Supervision Ben Olson.
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The Federal Housing Finance Agency is mandating that Fannie Mae and Freddie Mac require lenders to use the Supplemental Consumer Information Form as part of the application process for all loans that will be sold to the enterprises. The SCIF collects information about borrower language preferences and counseling to help lenders understand borrower needs. Effective March 1, 2023, lenders will be required to present the SCIF questions to borrowers and to report any data collected from the SCIF to the enterprise purchasing the loan. Borrower responses will remain voluntary. ICBA and other mortgage industry stakeholders opposed mandating the collection and reporting of language preference data in 2017 due to increased cost and possible legal liability.
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The SEC allocated 20 additional positions to its newly renamed unit responsible for protecting investors in crypto markets and from cyber-related threats. The Division of Enforcement’s Crypto Assets and Cyber Unit (formerly the Cyber Unit) will grow to 50 dedicated positions with a focus on crypto asset offerings and exchanges, decentralized finance platforms, non-fungible tokens, and stablecoins. Recent ICBA blog posts provide the latest on stablecoin market developments and how Washington is responding. ICBA also offers a summary of President Biden’s executive order on digital assets.
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The Senate Judiciary Committee, chaired by Sen. Durbin (D-Ill.), was set to hold a hearing on “excessive swipe fees and barriers to competition” in the credit and debit card systems. ICBA and other groups have expressed opposition to any efforts to expand Durbin Amendment price controls, noting: The Durbin Amendment’s artificial cap on interchange rates and routing restrictions is a failed government policy that has transferred $250 billion from small businesses to big-box retailers. The Durbin Amendment affects even financial institutions below the rule’s $10 billion-asset exemption threshold. Proposals to expand interchange restrictions to the credit card market would harm consumers, small businesses, and community financial institutions.
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