November 17, 2021
IBANYS Weekly E-Newsletter
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

 

IBANYS congratulates Alden State Bank & President & CEO Steve Woodard (IBANYS' Treasurer) on the recent Grand Opening of their new Clarence, New York branch! Alden State, which traces its roots to 1916, also has branches in Alden and Lancaster. Here's a link to some photos from the ceremony: https://rickpennyimages.smugmug.com/Family/Alden-State-Bank/

IBANYS' 2021 Human Resources (HR) Meeting will be held (by Zoom) Tuesday, December 7. Please take a moment to review the full brochure in today's newsletter for details on the program and registration. Also, please note IBANYS Calendar of Events below and mark your calendars to "save the dates".

Today's newsletter contains information on The Barrett School of Banking's upcoming Senior Lending Summit December 7. The all-virtual event featuring lectures, roundtable discussions, case studies and networking opportunities. To register: https://barretbanking.org/landings/senior-lender-summit/

ICBA/IBANYS Letter Opposing OCC Nominee. Today, IBANYS joined ICBA and a number of other state banking associations representing community banks in co-signing a joint letter to U.S. Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and Ranking Republican Member Pat Toomey (R-Pennsylvania), expressing our opposition to the nomination of Professor Saule Omarova to be Comptroller of the Currency. Read the letter here.

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. IBANYS is coordinating a meeting with Chair Fahy for our leadership and with a number of New York community banks in her district.

COMMENT PERIOD: The NYS Department of Financial Services (DFS) posted a proposed regulation  amending Part 76 of General Regulations of the Superintendent (3 NYCRR Part 76). https://www.dfs.ny.gov/industry_guidance/regulations/proposed_banking. It would implement Banking Law § 28-b’srequiring requirement the Superintendent evaluate the extent to which state-chartered banks offer and provide credit and technical assistance programs to minority- and women-owned businesses in CRA evaluations. The public comment period expires January 3, 2022. Email comments to Meredith Weill: meredith.weill@dfs.ny.gov.

Credit union satisfaction lags banks again. Consumer satisfaction with credit unions lagged banks for the third year in a row, according to a national survey covered by CU Today. Credit union satisfaction declined 1.3% this year to 76, according to the latest American Consumer Satisfaction Index. Banks scored a 78, the same as 2020. IBANYS joins with ICBA in continuing to encourage Congress to investigate credit unions’ tax exemption and acquisitions of community banks, including in a USA Today ad campaign earlier this fall. More information is on ICBA’s Wake Up page.
IBANYS held discussions with key members of the New York Congressional Delegation earlier this year to advocate on this issue.

Still more evidence of how community banks led the way on PPP! Community bank Paycheck Protection Program lending was instrumental to the industries and communities most in need of emergency assistance, according to a new ICBA blog post. In the new post ICBA economist Noah Yosif breaks down data detailing how community banks prioritized at-risk workers and industries while meeting the needs of underserved communities. The final installment of a three-part series on PPP data follows previous posts on how community banks:



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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!.
IBANYS MEETINGS
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
Human Resources Update
December 7, 2021
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.

ASSOCIATE MEMBERS & PREFERRED PARTNERS
Luse Gorman Served as Legal Counsel to C.C. Bancorp, Inc. in its $10.5 Million Subordinated Debt Issuance   
On November 12, 2021, C.C. Bancorp, Inc., Little Valley, New York, the holding company for Cattaraugus County Bank, completed a private placement of $10.5 million of its 3.75% Fixed-to-Floating Rate Subordinated Notes due 2031.

Luse Gorman served as legal counsel to C.C. Bancorp, Inc. in the offering. The Luse Gorman team consisted of Jeffrey Cardone and Ellie Cook.

Luse Gorman has extensive experience representing issuers in public offerings and private placements of capital stock, debt, and other securities. To learn more about our Capital Markets and Corporate Finance practice, please visit our website.
SENIOR LENDER SUMMIT VIRTUAL CONFERENCE
DECEMBER 7, 2021 9:00AM-3:PM CST
TOPICS
An intensive workshop designed to provide senior management
with immediate, tangible strategies to improve risk management
within the bank’s commercial lending portfolio.

  • Review of Current Industries and Economic Trends
  • Loan Pricing and Structuring
  • Internal Loan Review
  • Portfolio Management and Trouble Asset topics

WHAT WILL IT BE LIKE?
This will be an all-virtual event. Great lectures, roundtable
discussions, numerous case studies, and opportunities to network.

RICHARD HAMM
President of Advantage Consulting and Training

  • Barret Graduate School of Banking
  • Graduate School of Banking at Wisconsin
  • Pittsburgh RMA Commercial Lending School
  • BAI Graduate Schools of Banking
  • Published 20 articles in The RMA Journal
  • On the RMA Journal Editorial Advisory Board
  • ABA Commercial Lending Graduate School
  • Over 15 years as a Commercial Lender
  • Received MBA from the University of Alabama
  • Southwestern Graduate School of Banking

WHO IT'S FOR:

  • Community Bank Presidents
  • Senior Credit Officers
  • Commercial Portfolio Managers
  • Loan Administration
  • Review Managers


5 hours of instruction are scheduled

Cost: $295 per bank with assets $2B and less
$395 per bank with assets in excess of $2B

Register:
ICBA Information
Feb 27 Mar 3, 2022
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.

Fed Taper Tactics
A review of past QE wind-down strategies.
By Jim Reber
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.”

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. 
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

  • The “Good Cause Eviction” bill: People should get ready to hear the name of this piece of legislation repeated throughout the next legislative session. Read More

  • New York state is running out of money for the Emergency Rental Assistance Program and is asking for more funding from the federal government. Read MoreNew York State said on Friday that it would stop taking most requests for its pandemic rent relief for struggling tenants because an overwhelming number of applicants had left the program nearly out of money. Since the $2.4 billion program started this summer, the state has received nearly 280,000 applications for help paying overdue rent and utility bills. As of this week, New York had paid out $1 billion — nearly 85% in cases involving New York City renters — with another $1.1 billion committed to be given out but where more paperwork was needed from landlords.​ 

  • Governor Hochul recently signed a bill (S.2928-A/A.06098-A) that expands New York State's Paid Family Leave legislation to allow caring for siblings. The bill will go into effect on January 1, 2023. It builds upon the state’s Paid Family Leave legislation enacted in 2016, which created one of the most comprehensive paid family leave programs in the nation. It is employee-paid insurance that provides workers with job-protected, paid time off to bond with a newly born, adopted or fostered child; care for a family member with a serious health condition (which may include severe cases of COVID-19), or assist loved ones when a member of the family is deployed abroad on active military service. Paid Family Leave may also be available in some situations when an employee or their minor, dependent child is under an order of quarantine or isolation due to COVID-19. Eligible workers may take up to 12 weeks off at 67% of their pay (up to a cap) to care for family members in times of need. https://www.governor.ny.gov/news/governor-hochul-signs-legislation-expanding-new-york-states-paid-family-leave



  • Acting DFS Superintendent Adrienne Harris announced the approval of a new Banking Development District (BDD) covering the neighborhood of Van Cortlandt in the Bronx, continuing New York State’s efforts to expand access to affordable financial services. “This new BDD is a testament to what can be achieved when government and community banks collaborate on providing affordable banking services to families and Main Street small businesses,” said Acting Superintendent Harris.  She noted Ridgewood Savings Bank will continue to serve local residents and small businesses in the neighborhood, offering access to competitive, affordable financial products. Ridgewood Savings Bank will also provide financial education to consumers and businesses, to help foster financial empowerment and inclusion in the community. https://www.dfs.ny.gov/reports_and_publications/press_releases/pr20211110

  • Acting Superintendent Harris also recently announced a new proposed regulation that will allow the DFS to evaluate how well New York State regulated banking institutions are serving their communities under an enacted amendment New York State’s Community Reinvestment Act with respect to minority- and women-owned businesses. The new proposed regulation enables DFS to perform its recently enacted CRA obligation to evaluate the extent to which banks offer and provide credit to minority- and women-owned businesses in their communities and will help the department ensure minority- and women-owned businesses have fair access to credit. Read a copy of the proposed regulation


  • NYS Comptroller DiNapoli urged New York City officials to better prepare for financial downturns by evaluating the city’s rainy-day reserve fund, establishing targets for how much should go into the fund each year and setting the conditions for withdrawals. His report found the city’s reserve policies are not as robust as other large U.S. cities. https://www.osc.state.ny.us/files/reports/osdc/pdf/report-13-2022.pdf




  • Long Island real estate developer Scott Rechler, CEO and Chairman of RXR Realty, has been elected to the Federal Reserve Bank of New York's board to fill a vacancy until Dec. 31 and is expected to be nominated for a full three-year term in the coming weeks. Rechler is a director for Group 1, which represents banks with capital and surplus of more than $2 billion. 

  • Polarization has only increased in the last decade, but one political organization is trying to change that. Upstate New York businessman Martin Babinec has tried to take some of the heat out of the political arena in recent years. He's founded the group Unite NY, meant to support independent candidates who offer compromise and consensus. Read More

Good morning, SBA has issued Procedural Notice 5000-821479 “Issuance of Updated SBA Form 159 and Revised Procedures in SOP 50 10 6 for Submission of the Form.” A copy of the notice is attached. The update SBA Form 159 is located within SBA’s “For Partners” website, click here: Form 159
 
The purpose of this Notice is to announce the issuance of a revised SBA Form 159, Fee Disclosure and Compensation Agreement and to revise the procedures set forth in SOP 50 10 6 for submission of the completed form and supporting documentation by SBA Lenders. SBA uses this form to identify Agents and the fees and/or compensation paid to Agents by or on behalf of a small business applicant (“Applicant”) for the purpose of obtaining or expediting an application for a loan guaranteed by the U.S. Small Business Administration (SBA). SBA Form 159 allows SBA to collect information about Agents, the services they provide, compensation rendered, and who paid the compensation. SBA also uses this form to monitor fees charged by Agents and the relationship between Agents and Lenders.
 
For new applications, SBA Lenders are required to use the revised SBA Form 159 immediately; however, for applications already in process, SBA Lenders may continue to use the previously approved version.
 
Please review the notice for the complete policy, including the requirement to report on the form using SBA’s Capital Access Financial System website.
 
Valerie Shoudy, Lender Relations Specialist               Grace Conners, Lender Relations Specialist
Valerie.Shoudy@sba.gov                                              Grace.Conners@sba.gov
U.S. Small Business Administration
224 Harrison St., Suite 506 | Syracuse, NY 13202
Washington Update

ICBA urging grassroots pushback against SBA direct lending plan. ICBA is calling on community bankers to continue the campaign opposing proposed changes to the SBA 7(a) loan program contained in the House budget-reconciliation bill. Grassroots: Community bankers can use ICBA’s Be Heard grassroots action center to urge Congress to oppose a plan that would authorize the SBA to issue direct 7(a) loans, which would harm small businesses and taxpayers.

Republicans on the House Small Business Committee question the wisdom of having the SBA depart from its traditional model of backing loans made by private-sector lenders. However, SBA Administrator Isabella Casillas Guzman says the plan is necessary to fill "large gaps" in credit availability to the smallest companies. Read More →

A group of 19 Senate Republicans led by Sen. John Boozman (Ark.) denounced an ICBA-opposed U.S. Postal Service pilot program to test postal banking. In a joint letter, they said the pilot program:
  • Exceeds the Postal Service’s legal authority.
  • Fails to comply with relevant regulations.
  • Diverts resources away from the core USPS function of mail delivery.
  • Advances the misguided USPS expansion into government banking.
The USPS quietly launched the pilot in September to offer check cashing, bill paying, ATM access, and expanded money orders and wire transfers in Washington, D.C.; Falls Church, Va.; Baltimore; and the Bronx, New York. The American Prospect reported last week that no one has used the service at the Bronx location, with the Cato Institute saying the pilot does not address why unbanked individuals choose not to have a bank account. 

ICBA—which has spoken out against the pilot via NBC News,The Washington Post, and the Washington Examiner—strongly opposes postal banking, as does IBANYS. A three-part series of ICBA issue briefs explores the policy’s flaws and offers alternatives for reaching the unbanked.


FDIC supporting inclusion through community banks: FDIC Chair McWilliams. The FDIC is working to expand financial inclusion by helping reduce community bank costs of adopting innovative products and services, FDIC Chairman Jelena McWilliams said. McWilliams cited the FDIC’s updates to its brokered deposit rules and request for input on third-party due diligence standards. She also pointed to the agency’s collaboration with minority depository institutions and community development financial institutions.
McWilliams also said the FDIC is working to raise awareness of the importance of having a bank account through its #GetBanked initiative, which provides consumer information and resources. Meanwhile, ICBA offers a directory of community banks that can open accounts remotely with a starting balance of $25 or less. Community banks can add their bank to the directory by completing an online form.

President Biden is expected to announce his pick for Federal Reserve Chair in "the next four days," and Senate Banking Chairman Brown (D-OH) said he's certain either of the main contenders, current Chairman Powell or Fed Governor Brainard, would receive approval from his panel and confirmation from the full chamber. The President has reportedly eliminated other contenders for the position. Bloomberg
 
Saule Omarova faces an uphill climb to confirmation as Comptroller of the Currency over concerns that she supports more government control of the banking system. Her hearing before the Banking Committee could be a make-or-break moment, observers say. Read story  (Note: See President's Message in today's newsletter to read ICBA letter opposing her nomination, co-signed by IBANYS and other state banking associations.


CFPB seeks input on HMDA rules. The Consumer Financial Protection Bureau requested input on rules implementing the Home Mortgage Disclosure Act. Details: The CFPB said it plans to review recent changes to the rules and evaluate their effectiveness. The bureau said it will focus on:
  • Institutional and transactional coverage.
  • Data points.
  • Benefits of the new data and disclosure requirements.
  • Operational and compliance costs.
 
The comment period will be open for 60 days. ICBA will submit comments.

Hsu: Agencies planning additional clarity on crypto activities. Federal banking regulators will soon issue a short statement that describes the recently concluded interagency “crypto sprint,” Acting Comptroller of the Currency Michael Hsu said. He also said the OCC will provide clarity on a recent review of crypto-related interpretive letters. Speaking at the Federal Reserve Bank of Philadelphia, Hsu said the message from both is that the agencies are approaching crypto activities carefully and expect banks to do the same—and safety and soundness is paramount. “The releases should not be interpreted as a green light or a solid red light, but rather as reflective of a disciplined, deliberative, and diligent approach to a novel and risky area,” Hsu said. ICBA Position: ICBA is encouraging regulators to collaborate on a comprehensive approach to unregulated platforms and expressed support for efforts to ensure a consistent federal regulatory framework for stablecoins.