IBANYS Weekly E-Newsletter |
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Visit our website at www.ibanys.net to review our daily updates on COVID-19.
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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
Yesterday's elections saw mayors elected in New York City, Albany, Syracuse, Rochester and Buffalo, as well as a number of other key officials (county executives, district attorneys, etc.) throughout the state. Today's newsletter covers all the election news in our Albany and Washington sections. I urge New York community bankers to reach out to the winning candidates, continue our outreach and relationship building efforts to ensure they are fully informed about the crucially important role we play in meeting the needs of the customers, consumers, small businesses and local communities that we serve.
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IBANYS has partnered with Empire State Development to promote their NYS COVID-19 Small Business Recovery Grant Program. The program is outlined below and still has funds available for distribution. It’s another way to help your small business clients recover their losses from the pandemic. There is no repayment of funds - it is truly a grant for the small businesses. The New York State COVID-19 Pandemic Small Business Recovery Grant Program is administered by Empire State Development (ESD) and powered by Lendistry. The program was created to provide flexible grant assistance to currently viable businesses in the State of New York who experienced gross receipts losses of at least 25% due to the COVID-19 pandemic. Grant awards can be: 2019 Annual gross receipts: $25,000 – $49,999.99: Award is $5,000 / business. . .2019 Annual gross receipts: $50,000 – $99,999.99: Award is $10,000 / business. . .2019 Annual gross receipts: $100,000 – $2,500,000: Award is 10% of gross receipts (maximum grant is $50,000). As funds are still available, applications are still being accepted. All small businesses in New York State who have suffered gross receipts losses and received no or minimal federal funding support should visit www.nysmallbusinessrecovery.com or call 1-877-721-0097 for more information on eligibility and to apply. This link to the program guide explains the program and application process step by step: https://nysmallbusinessrecovery.com/wp-content/uploads/2021/10/ENGLISH-NY-COVID19-Recovery-Grant-Program-Guide-10.22.21.pdf. . .Here is a marketing tool box developed by ESD to assist you in sending the message to your small business clients. . .And, here is an example of Ponce Bank’s one page brochure. Questions? Call me: 716.880.0518 or 518.436.4646.
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IBANYS' new Fiscal Year began November 1, and our 2021-22 officers, who also constitute our Executive Committee, are officially in place:
- Chairman: Mario Martinez, Chairman & CEO, Catskill Hudson Bank
- Vice Chairman: Anders Tomson, President & CEO, Chemung Canal Trust
- Treasurer: Steve Woodard, President & CEO, Alden State Bank
- Immediate Past Chairman: Mike Wimer, President & CEO, Cattaraugus County Bank
Four newly elected members of IBANYS' board of directors are also in place:
- Tim Dickey, President & CEO, Bank of Holland
- Steve Gobel, President & CEO, First National Bank of Groton
- Mark Lavarnway, President & CEO, Watertown Savings Bank
- Carlos Naudon, President & CEO, Ponce Bank.
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A new ICBA blog post explores data showing the urgency of community banks’ Paycheck Protection Program response to help save small businesses in their communities. In the first in a series of blog posts on final PPP data, ICBA economist Noah Yosif says: 1) Community banks drove lending in the earliest weeks of the PPP. 2) States with strong community bank traditions were more successful in addressing employment challenges. The next post in the series will focus on community bank service to the hardest-hit industries and communities. Read the post.
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Today's newsletter includes the latest information and legislative & regulatory updates from both Albany and Washington on programs, policies and issues and political landscapes with an impact on community banking. Get all the details in the Albany and Washington sections below. Also included in this week's newsletter is the detailed agenda and registration information for our Human Resources Update scheduled for December 7 via ZOOM. Please see details under the meetings section.
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IBANYS needs your input and participation on our committees. Find out more about the opportunities available to play an important role in advancing the interests of the New York community banking industry, IBANYS and your own institution's future. Email me (Johnw@ibanys.net) or IBANYS' Director of Administration & Membership Services Linda Gregware (Lindag@ibanys.net) for more information on how to get involved!.
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Mark your Calendars and Save the Dates - IBANYS 2022 Meeting Schedule
- December 7 - Human Resources - ZOOM
- February 8 - Compliance - ZOOM
- April 4-5 - Mid-Year Conf. - ZOOM
- April 11 - Directors - ZOOM
- May 3 - Lending - (tentative) in-person
- June 13-15 - Annual Convention - Turning Stone Resort & Casino - in-person
- July 12 - Human Resources Update - ZOOM
- September 12-13 (tentative) - West Point - in-person
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Human Resources Update
December 7, 2021
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This program will provide updates on federal, New York State and New York City employment laws. Topics will include COVID-19 vaccination issues; COVID-19 leave laws; the New York HERO Act, New York’s recreational marijuana law and guidance; and addressing the workforce shortage.
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ASSOCIATE MEMBERS & PREFERRED PARTNERS |
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“The Advisor”
Qtr 4 - 2021
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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 it continues to deal with inflation, increase in investment yields, equity optimism, and ALM planning for an uncertain 2022.
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Shield Compliance Welcomes New Talent to Support Growing Demand for Cannabis Banking Services |
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Q3 Results: Navigating Challenging Loan Growth and Margin Compression
Tuesday, November 9 at 2:00 pm ET
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Challenging loan-to-deposit ratios. Contractions in net interest margins. A supply chain crunch that’s changed the economic landscape. Ongoing shifts in regulations and competition. Do trends like these mean that community banks’ earnings performance peaked in early 2021? Or do third quarter numbers tell a different story? Join us as we use QwickAnalytics to reveal peer metrics, detect caution lights, and provide insights directed at increasing your loan activity in the months ahead. Can’t make the date? Register anyway, and we’ll send you a link to the recording and presentation.
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Navigating a Cash Tsunami & Upgrade Overview
November 9, 2021 - 9:00 a.m. EST
Free Webinar
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This is an opportunity for attendees to learn about alternative balance sheet management strategies that can help manage excess liquidity in the face of increasing deposits and low yields, and also provides an overview of the latest in digital underwriting. We’ll go over how Upgrade is utilizing cutting edge credit models, digital acquisition strategies, and innovative product development to provide affordable and responsible consumer credit while also helping banks with balance sheet diversification and customer acquisition.
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Wolf & Company's 2021 Financial Services Leadership Annual Summit
Join Wolf & Company every Friday in November from 1 - 3 p.m. for a panel discussion and educational session!
The financial services industry is evolving, and in order to excel, institutions must analyze their operations, anticipate the changing needs of their customers, and embrace the advancements emerging in their sector.
Wolf’s Annual Leadership Summit will offer a series of sessions and panels harnessing advanced expertise from both fintechs and financial institutions. From efficient IT system management and cybersecurity enhancements, to workplace culture evolution and fintech integration initiatives, we’ll offer inventive ways to promote growth and new techniques to adapt in this ever-changing environment.
During our 3 – part series experts and executives involved in the financial services, technology, and fintech industries will gather to discuss:
- The latest trends affecting financial institutions today
- Creative techniques employed by executives to foster innovation
- Ways to improve and empower your strategic vision
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Part I
Friday, November 5, 2021
1:00 p.m. - 3:00 p.m. EST
Platform: Zoom
TOPICS:
Initiating Efficient IT: A CIO’s Perspective
Preparing to Mitigate and Respond to Ransomware
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Part II
Friday, November 12, 2021
1:00 p.m. - 3:00 p.m. EST
Platform: Zoom
TOPICS:
Fostering Foundation Fintech
Improving Legacy Core Processing Deals in the Age of Fintech
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Part III
Friday, November 19, 2021
1:00 p.m. - 3:00 p.m. EST
Platform: Zoom
TOPICS:
Engaging Employees & Evolving Your Workplace Culture
Cryptocurrency Session
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Join us in San Antonio for the largest annual convention for community bankers! Held Feb. 27 - March 3, 2022, ICBA LIVE is the best place to renew connections and make new ones.
Join together with ICBA and your industry colleagues from across the nation to celebrate our industry in person.
Our industry is ever changing: Learn about new trends and sharpen your knowledge in your area of expertise.
Explore the city take a walk across the River Walk, enjoy the vast selection of food and drink and take in the gorgeous San Antonio weather.
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Next Steps on Your Instant Payments Journey
2 part webinar series
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These webinars will be moderated by Nick Denning, Senior Vice President, Payments Industry Relations at ICBA Bancard, and Brian Laverdure, Vice President, Payments & Technology Policy at ICBA. Joining the moderators for the first webinar will be Keith Gray, Vice President of The Clearing House with responsibility for RTP® Network Strategic Partnerships, and we will hear from Connie Theien, Senior Vice President and Director, Payments Industry Relations at the Federal Reserve during the 2nd webinar.
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Fed Taper Tactics
A review of past QE wind-down strategies.
By Jim Reber
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Maybe the U.S. economy has improved to the point where further quantitative easing isn’t as critical to the Federal Reserve’s policy of “accommodation.” It certainly looks like the Fed has some further work to do on the portion of its mandate that relates to price stability, given the overshoot of its inflation goals. Fed Chairman Jay Powell said as much as early as this August, when he commented that “substantial further progress” has been achieved, and a month later stated that “moderation in the pace of asset purchases may soon be warranted.”
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IBANYS Webinars
Are you participating in IBANYS webinars? Now is the time! IBANYS webinars provide timely, important information on subjects of interest to New York community bankers including human resources, business development, investment, compliance and security and much more. They are valuable not only for their content, but for their convenience and low-cost. Take part from the comfort and privacy of your office, without leaving the bank.
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Subscription Tokens
The More You Buy, The More You Save
How does it work:
Tokens can be used to purchase live or recorded webinars anytime, with no expiration! Tokens for both live and recorded webinars are available for an additional fee. (What’s the difference? Click here for the full description.)
Once you have your Subscription Token code, you can immediately register for webinars by using the code at checkout! (Subscription tokens not applicable for full series registrations, or other specials.)
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Here are four takeaways from last night's election results. Read More
Gov. Hochul announced four new picks for top administration roles. They include Kate Harris as Deputy Secretary for Financial Services and Technology. She was Director of the "Reimagine New York Commission" on the State's recovery from the pandemic, and previously was minority counsel for the U.S. Senate Select Committee on Intelligence. She was also a member of the Policy Planning Staff at the U.S. State Department; worked at the U.S. Treasury Department on financial crisis response, and on domestic and international economic policy including access to credit for small businesses, smart financial regulation, consumer protection, global anti-corruption, and broadband technologies. https://www.governor.ny.gov/news/governor-hochul-announces-administration-nominations-and-appointments
Governor Hochul signed S.191, which permits credit unions to participate in the Excelsior Linked Deposit
IBANYS is preparing to send a comment letter to Governor Hochul's Counsel, Liuz Fine, in support of the Governor signing A. 6247A (Peoples-Stokes) that would extend the state's Community Reinvestment Act *(CRA) coverage to include mortgage bankers licensed bt the State Department of Financial Services (DFS). Read the letter.
New Assembly Banks Chair Patricia Fahy (D-Albany) has introduced a number of bills in preparation for the 2022 legislative session. The bills include establishing a public/state bank, and allowing credit unions to accept municipal deposits. Read the newly introduced legislation
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The Federal Reserve announced this afternoon it soon will begin reducing the pace of its monthly bond purchases, the first step towards pulling back on the massive amount of help it had been providing markets and the economy. Tapering of bond purchases will start “later this month.” The process will see reductions of $15 billion each month -- $10 billion in Treasurys and $5 billion in mortgage-backed securities – from the current $120 billion a month that the Fed is buying. The FOMC said the move came “in light of the substantial further progress the economy has made toward the Committee’s goals since last December.” The statement stressed that the Fed is not on a preset course and will make adjustments to the process if necessary. https://www.cnbc.com/2021/11/03/fed-decision-taper-timetable-as-it-starts-pulling-back-on-pandemic-era-economic-aid-.html
In yesterday's elections, Republican Glenn Youngkin beat former Democratic Gov. Terry McAuliffe in Virginia's gubernatorial race, becoming the first Republican to win statewide office there in 12 years. In New Jersey, the gubernatorial race is "too close to call" -- as of 3:27 p.m., Democratic incumbent Gov. Phil Murphy had a lead of roughly 15,000 votes over GOP challenger Jack Ciattarelli out of more than 2.4 million votes cast, the N.Y. Times reports. . . The Associated Press. . .Meanwhile, there were special congressional elections to fill vacancies in Ohio and Florida. In Ohio, Democrat Shontel Brown held the House seat vacated by HUD Secretary Marcia Fudge (D), while Republican Mike Carey was projected to to replace former GOP Rep. Steve Stivers, who left Congress. In Florida, two Democrats are headed to an automatic recount to determine who will replace the late Rep. Alcee Hastings (D) in a January election. The Washington Post. Read more...
ICBA is scheduled to testify at today’s House Financial Services subcommittee hearing on cyber and data security, and call on Congress to:
- Extend Gramm-Leach-Bliley Act data security standards to all participants in the payments system.
- Ensure regulation of core processors, fintech companies, and other third-party providers.
- Subject credit reporting agencies to appropriate oversight.
- Institute a national data security breach and notification standard.
- Require the costs of data breaches to be borne by the party that incurs the breach.
ICBA continues calling on community bankers to use its Be Heard resource center to speak out against numerous tax increases included in the budget reconciliation bill’s draft framework.
The FDIC formed a new office to support the agency’s ongoing engagement with minority depository institutions, community development financial institutions, and other mission-driven banks. Impact: The agency said the new Office of Minority and Community Development Banking will further promote private sector investments in low- and moderate-income communities. More: The announcement follows the FDIC’s launch of the Mission-Driven Bank Fund, formation of the Advisory Committee on Community Banking’s Minority Depository Institutions Subcommittee, and other agency efforts.
The Consumer Financial Protection Bureau announced the following leadership changes:
- Lorelei Salas will be assistant director for supervision policy and acting assistant director for supervision examinations. She was previously commissioner of the New York City Department of Consumer and Worker Protection.
- Eric Halperin is assistant director for the Office of Enforcement. He has served in the Justice Department’s Civil Rights Division and was most recently CEO of Civil Rights Corps.
ICBA advocated a moderate approach to the OCC’s rescission of its 2020 Community Reinvestment Act final rule and reinstatement of the 1995 interagency CRA rule.
comment letter that an outright return to the 1995 rule would be disruptive to banks that updated their business practices or compliance systems due to the 2020 rule.
ICBA Position: Instead, ICBA encouraged the OCC to:
- Issue a final rule that generally adopts the portions of the OCC’s 2020 rule that had a compliance date of Oct. 1, 2020.
- Reinstate the 1995 rule for the 2020 rule provisions for which the compliance dates have not yet occurred.
ICBA said this approach would allow banks to continue to use newly implemented thresholds, qualifying activities criteria, strategic plans approved under the 2020 rule, and updated notices and public files. In addition to its comment letter, ICBA and other financial services groups also submitted a joint letter with similar recommendations.
President Biden said he will announce nominees to the Federal Reserve board "fairly quickly" and that he has been meeting with economic advisers on potential choices for key positions. As Biden decides whether to renominate Fed Chairman Jerome Powell, he told reporters that he wouldn't "speculate" on who those nominations would be. Politico
President Biden formally nominated Cornell University law professor Saule Omarova for comptroller of the currency. The next step is for the Senate Banking Committee to schedule a hearing on the nomination. ICBA expressed concerns with Omarova’s policies after Biden in September announced plans to nominate her to head the OCC. In a news release that has generated coverage in The New York Times and elsewhere, ICBA cited Omarova’s policy proposals to: 1) Migrate retail banking deposits to the Federal Reserve, and 2) Establish government banking FedAccounts for consumers.
Democratic lawmakers are nearing a deal on a five-year suspension of the $10,000 state and local tax (SALT) deduction cap imposed during the Trump administration, a concession to some high-income Democratic states such as New York and New Jersey. The move is drawing criticism from some liberal Democrats as a giveaway to the wealthy, but talks are continuing on the issue, three people with knowledge of the discussions cautioned. Rep. Tom Suozzi (D-Li>i/Queens) is a leading proponent of repealing the SALT cap. The New York Times;
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