May 18, 2022
IBANYS Weekly E-Newsletter
2022 Convention Sponsors - to date

  • Bankers Healthcare Group (BHG)
  • CEIS Review
  • COCC
  • Federal Home Loan Bank of NY
  • Hartman Executive Advisors
  • ICBA
  • NEACH
  • Pillar+Aught
  • Piper Sandler
  • Plante Moran
  • Pursuit
  • Roosevelt & Cross
  • SHAZAM
  • Shield Compliance
  • Sunwealth
  • T. Gschwender & Associates
  • The Baker Group
  • Wolf & Co.
President's Message

  • Click the video link to learn more about IBANYS 46th Annual Convention from IBANYS President & CEO, John Witkowski Video


  • State and federal  legislative issues are heating up, with IBANYS active on both fronts. IBANYS has been actively advocating in both Albany and Washington to explain our positions and concerns, and urged New York community bankers to reach out to key state and federal legislators as well. See our Albany and Washington sections for details.
 
-- John
MEMBER BANK NEWS
IBANYS Congratulates Genesee Regional Bank
Genesee Regional Bank (GRB) has been recognized as one of the country’s Top-performing Community Banks by the Independent Community Bankers of America (ICBA). There are only four New York state community banks on the list this year and GRB is the only one in Western New York. So, of course, we’re thrilled.
 
GRB is ranked at no. 21 in the $300 million to $1 billion asset category on the nationwide list.
 
There are more details and some quotes from Phil Pecora, GRB’s president and CEO, in the attached press release.

IBANYS MEETINGS
Join IBANYS’ 2022 Annual Convention — June 13-15, 2022 —
Turning Stone Resort & Casino, Verona, NY
 
IBANYS 46th Annual Convention kicks off in just over a month. This is our first in person convention in over two years — since COVID.
 
We have an outstanding slate of speakers who will share their knowledge and expertise on an array of topics that are very timely and will assist you and teams to remain informed and to continue to move forward in this ever-changing environment.
 
Education is not all we have planned….we have our signature tradeshow with our vendors who are excited to meet you and share with you their products and services. 
             
June13th -- Join us on Monday evening on the tradeshow floor for our Vendor Appreciation cocktail hour and networking opportunity followed by dinner. 

June 14th - Tuesday’s tradeshow features our very popular silent auction that raises funds for IBANYS PAC …. Extremely important to support community bank advocates in the legislature. And for those who don’t believe in the power of the mind – We have a Mentalist that will entertain us and prove otherwise!
 
AUCTION ITEMS NEEDED: Do you have a unique item you would like to donate to the auction? — please see page 11 of the attached brochure to learn more. This is a fun and exciting event MC’d by ‘THE MOST ANNOYING’ PERSON TO HOLD A MIC - John Witkowski.
             
June 15th – Closing Keynote from Jack Hubbard – Chief Experience Officer – St. Meyer and Hubbard
 
The convention is an outstanding event that provides opportunities to network, collaborate, learn, see “old” friends, and meet new friends. Talk with your colleagues — learn from each other and share your thoughts and issues that the industry faces.
 
You’re not yet registered?….there is still time. Register today and let’s ‘MOBILIZE’ at The Turning Stone Resort and Casino!
 
Click the link below for the detailed brochure for this must attend event:

  • Contact the Turning Stone Resort and Casino and secure your overnight accommodations – IBANYS has a room block (PAGE 6)
 
We are excited to have the opportunity to host this event once again and hope you, your Board of Directors and/or someone from your team will join us June 13-15, 2022 at the Turning Stone Resort & Casino.
 
Associate Members, Preferred Partners and service provides for community banks, we still have a few booths available - secure you locations today (see page 10).

Please do not hesitate to contact us if you have any questions or need more information.  
Guidance for New Directors
Thursday, June 16 — 11:00 - 12:30 p.m.
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

CONVENTION SPONSORS
On behalf of IBANYS members, Board of Directors and staff we want to extend our thanks to all the sponsors of IBANYS 46th Annual Convention and for all they do for all New York Community Banks.

Please click on each of the companies to learn more about the company and how they can help you.

This week we are highlighting our Platinum Sponsors.
Adam Goldstein is Senior Vice President, Chief Business Officer at the
Federal Home Loan Bank of New York will be presenting on Tuesday, June 14 -
8:50 - 9:40 a.m. "Enduring Partnership, Resilient Cooperative: An Update from Your FHLBNY"



Be sure to stop by FHLB's booth 24.
Silent Auction Reception - Tuesday Evening
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.
Be sure to stop by booth 17
Dinner - Tuesday Evening
BHG's history of success is credited to its leadership team, which continues to adapt to the complex needs and challenges of today's professionals and our economy.
 
Since its inception, BHG has received numerous awards and accolades for continued growth and innovation, including recognition from Inc. 14 times. We invite you to contact us today to learn more about loan programs and credit cards, as well as the unique process that makes BHG a leader in financing to professionals nationwide.
Be sure to stop by booth 3
Welcome Dinner
Monday Evening
NEACH is a non-profit trade association with more than 45 years of experience helping members originate and receive ACH transactions. NEACH provides products, services, education, and marketing to its member institutions and other New England entities to increase the acceptance, use, and quality of electronic transactions. To learn more, visit https://www.neach.org/
Patrick Dix, Vice President, Strategic Alliance will present on Tuesday, June 14 - 1:50 - 2:40 p.m. "Crisis Communications During a Pandemic"

Be sure to stop by booth 18
Vendor Reception
Monday Evening
SHAZAM is a national member-owned debit network, processor and core provider. Founded in 1976, SHAZAM delivers choice and flexibility to community financial institutions throughout the U.S. and is a single-source provider of the following services: credit card, debit card, core, fraud, ATM, merchant, marketing, training, risk and ACH.
Michael Guteplan
Mentalist & Master Magician Tuesday Evening Entertainment
Highly regulated industries like cannabis are complex, but serving these customers doesn’t need to be. At Shield Compliance, we develop leading solutions for financial service providers and high-risk customers to work together and thrive.
 
We started Shield Compliance with an idea to provide modern solutions for financial service providers such as banks and credit unions to provide services to those in the community who need them most. 
 
One of today’s most compelling opportunities is cannabis banking. The newly emerging cannabis industry brings entrepreneurial energy from the clients and the pioneering bankers who have worked tirelessly to solve the legal cannabis industry’s unique challenges.
 
The ability to unlock, analyze, and validate data is paramount when dealing with high-risk clients. In a complex regulatory environment, serving this industry requires trust in technology to enable institutions to manage sensitive data, mitigate risk, and improve compliance outcomes to enable scale and operational efficiency.
 
Our founder's experience in client-side operations and network logistics laid the groundwork for understanding the needs of banking emerging high-risk markets like cannabis, cryptocurrency, and others. 
 
Our solution begins with a purpose-built AML/BSA compliance platform and payment system. Shield Assure manages compliance with access to public and private data, automated alerts and reporting. Shield Engage facilities new client applications and underwriting between high-risk clients and financial institutions in an easy to use, secure, and customer friendly experience.


Join Tony Repanich, President & COO for a Panel Discussion on "Fundamentals of Cannabis Banking", Wednesday, June 15 - 8:30 - 9:20 a.m.
Join Tina Giorgio, President & CEO, ICBA Bancard & Damon Moore, President & CEO, TCM Bank, N.A. for "How the Pandemic Changed the Way We Pay and What the Future May Hold", Wednesday, June 15 - 9:20 - 10:10 a.m.
Exhibit Space
The Independent Community Bankers of America® is the nation’s voice for community banks with its mission to create and promote an environment where community banks flourish. We are dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and innovative products and services.
ASSOCIATE & PREFERRED PARTNERS
Wednesday, May 25, from 10:30 AM to 11:45 AM EST.
Larry Pruss, Managing Director of Crypto Advisory


The team at SRM continues to track the most pertinent trends in crypto and share them with our network.
 
We often discuss crypto strategies and solutions, but we also want to make sure your constituents understand the critical security elements that need to be considered when enabling digital assets. 
ICBA INFORMATION
The Great Escape
The bond market braces for the Fed’s wind-down of its balance sheet.
By Jim Reber, ICBA Securities
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.
ALBANY UPDATE


  • As the 2022 state legislative session heads for the announced June 2 adjournment, legislative proposals to 1) establish a state/public bank and 2) to allow credit unions to bid on municipal deposits are still under consideration -- and are very much on our radar. IBANYS strongly opposes these bills. We have held a number of discussions with the chairs of the two legislative Banks Committee chairs, Sen. Sanders (D-Brooklyn) and Assembly Member Fahy (D-Albany) to explain our concerns.  Assembly Chair Pat Fahy (D-Albany) has pulled her Assembly version (A.08289) of the credit unions/muni deposits bill, saying it needs more work before she presents it again for consideration. Meanwhile, there continues to be a strong push by a coalition of progressive and consumer  activists and many legislators to pass a public bank bill. However, Senate Banks Chair Sanders (D-Brooklyn) is considering our suggestions of alternative ways to meet the needs of the unbanked and underbanked using existing vehicles.  Here is IBANYS’s Memo in Opposition to the legislation… also: Read IBANYS Background & Talking Points Opposing this legislation.) . . .Lastly, 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.


  • NYS Financial Services Superintendent indicated she wants to be cautious in regulating fintech that expands access to the underbanked. “There’s a need for liquidity for underserved communities,” Harris  told PYMNTS.com. “We want to be careful to use a scalpel and not a hatchet.”

  • The Federal Reserve Bank of New York announced Lorie K. Logan will step down from her role as Manager of the System Open Market Account (SOMA) and Head of Market Operations, Monitoring, and Analysis in the Markets Group. Logan will become President and Chief Executive Officer of the Federal Reserve Bank of Dallas. She will remain in her role until August 2022 and the New York Fed will launch a search for her successor in the coming weeks. Upon her departure, Deputy SOMA Manager Patricia Zobel will become SOMA Manager pro tem. https://www.newyorkfed.org/newsevents/news/aboutthefed/2022/20220511
Join DFS for the third and final morning of our Cybersecurity Symposium honoring the 5th year anniversary of New York's Cybersecurity Regulation (23 NYCRR Part 500). A recording of the first morning’s event, “The Unrelenting Cybersecurity Battle: 5 Years of Evolving Threats & Controls,” can be found here, and a recording of the second morning’s event, “The Human Factor: Leadership, Governance and Diversity in Cybersecurity,” can be found here. 
 
To attend the May 24th event, “Spotlight on Small Business: DFS and the Global Cyber Alliance Share
Achievable Cybersecurity Controls for Smaller Organizations,” register here. You can find more information about the event on DFS’s Cybersecurity Resource Center. Please note that, if you registered prior to April 14th, you need to reregister as we are now hosting the symposium in a new environment that can accommodate more attendees. We apologize for the inconvenience.   
 
** If you have any questions you would like addressed during May’s event, please send them to cyberevents@dfs.ny.gov by May 17. 
WASHINGTON UPDATE

  • Closing the ILC Loophole: IBANYS and constituent community banks in the districts of key New York members of the House Financial Services Committee, urging them to support legislation supported by ICBA and IBANYS (H.R. 5912) to close the Industrial Loan Company (ILC) loophole during the Committee’s markup session this week.  Here are the issues we discussed in Washington, including the ILC loophole.  The markup of the ILC legislation continues today -- the  Committee recessed yesterday without voting on it. The bipartisan bill (H.R. 5912) would remove the Bank Holding Company Act’s exemption of ILCs from the definition of “bank” and thereby permanently close the ILC loophole.  A vote expected today. ICBA continues urging community bankers with representatives on the committee to weigh in. ICBA offers custom action alerts to help community bankers call and write their lawmakers to support much-needed votes to pass the ILC bill.  In a joint letter with other groups, ICBA yesterday reiterated its support for closing the ILC loophole and urged support for H.R. 5912, sponsored by Reps. García (D-Ill.) and Gooden (R-TX.)  Read our position here.  

  • The Financial Services Committee is also slated to take up ICBA-opposed  legislation that would broaden credit union authority. The "Expanding Financial Access for Underserved Communities Act" (H.R. 7003) sponsored by committee Chairwoman Maxine Waters (D-CA) would expand credit union powers to serve low-income and underserved areas without requiring proper documentation or oversight. Note: 1) ICBA has a “customizable op-ed” community bankers can use to raise awareness of credit union acquisitions of community banks.  It's available in Microsoft Word so community bankers can personalize and distribute it to local news media, and cites the harmful impact of the acquisition trend on local customers and tax revenues.  The op-ed is available on ICBA’s Wake Up page. 2)  ICBA is also running a digital campaign featuring this 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.

  • The FDIC board of directors voted to restore the agency’s Supervision Appeals Review Committee as the final level of review in its supervisory appeals process. Under revised Guidelines for Appeals of Material Supervisory Determinations, the SARC generally replaces the Office of Supervisory Appeals as the final level of review. The move reverses last year’s revised guidelines replacing the SARC with the Office of Supervisory Appeals, which was made operational less than six months ago. Effective immediately and open to a 30-day comment period, the guidelines will reestablish the SARC as it stood in 2021, with one member of the FDIC’s board of directors, a deputy or special assistant to each of the other board members, and the FDIC general counsel as a non-voting member. Aside from the reinstatement of the SARC, most aspects of the supervisory appeals process remain unchanged. 

  • In a LinkedIn op-ed,   ICBA President and CEO Rebeca Romero Rainey Romero Rainey   writes   that while recently reintroduced Senate legislation would add a bank branch to each of the nation’s post offices, a faltering U.S. Postal Service pilot program demonstrates the plan’s flaws. “If Congress pushes the post office into the banking industry, it will expose taxpayers to additional subsidies and financial rescues down the road while harming the USPS’s already-stressed primary function of mail delivery. . .This is another case of Washington putting good money after bad.”  A three-part series of ICBA issue briefs delivered to policymakers last year explores the postal banking policy’s flaws and offers alternatives for reaching the unbanked.  READ MORE

  • President Biden released a Housing Supply Action Plan to reduce housing costs over time by boosting the housing supply. The plan includes policies to reward jurisdictions that reform zoning and land-use policies, deploy new financing mechanisms for housing with finance gaps, expand existing forms of federal financing, and more.

  • The CFPB announced the launch of a new system to provide guidance to other agencies on how the CFPB intends to enforce federal consumer financial law. CFPB Director Rohit Chopra said the CFPB will issue Consumer Financial Protection Circulars to other agencies responsible for enforcing federal consumer financial law to promote regulatory consistency and fair competition in the market. The circulars will also be publicly released.

  • Sen. Joe Manchin (D-W.Va.) will support President Biden’s nomination of Michael Barr as the Federal Reserve's Vice Chair for Supervision, saying he met with Barr and believes the former Treasury Department official would make a "good addition" to the Fed. Sen. Manchin previously opposed the nomination of Sarah Bloom Raskin for the position, leading to her withdrawal. Reuters