January 20, 2021
IBANYS Weekly E-Newsletter
  • Visit our website at www.ibanys.net to review our daily updates on COVID-19.
The President's Message
By John Witkowski, President & CEO
We are living in a time of change.
As of Noon today, the United States has a new President and a new administration. We know that -- in conjunction with the Democrats gaining the majority in the U.S. Senate -- it is likely that there will be significant changes in policies from the previous administration and GOP-controlled Senate.
  • We have a new Chairman of the Senate Banking Committee (Sherrod Brown, D-Ohio)
  • A new head of the Consumer Financial Protection Bureau (Rohit Chopra, former student loan ombudsman at the Bureau)
  • A new Chairman of the Securities and Exchange Commission (SEC), Gary Gensler (the former chair of the Commodities Future Exchange Commission)
  • And soon, a new Treasury Secretary (Janet Yellen) and Comptroller of the Currency.
IBANYS is working hard with our partners at ICBA to closely monitor legislative and regulatory developments impacting community banks.
In Albany, there is a new Chairman of the State Assembly Banks Committee (Victor Pichardo, D-Bronx), new "veto proof" supermajorities in both chambers of the Legislature and The Governor has delivered his four-part State of the State address and his Budget Message, and now the hard work of legislating and negotiating will commence. We are examining the details of the budget presentation, and other legislation as well.
This week, the new round of the Paycheck Protection Program (PPP) is underway -- and according to the SBA, approximately 60,000 borrowers were approved for more than $5 billion in loans, with the first set of applications mostly handled by community and small lenders. The SBA said the average PPP loan was below $20,000 for first-time borrowers and less than $75,000 for second-time borrowers during the week.
At IBANYS, we are busily preparing for our first round of meetings of 2021. January board meeting, and our February 4 Regulatory Compliance webinar, and getting ready for the March 2 Directors Webinar and the other upcoming educational sessions. We are also excited to share the pending elevation of our own Bob Fisher (Tioga State Bank) to the position of Chairman of ICBA in March.
We have more details on all the aforementioned, including the latest updates from both Albany and Washington, in today's newsletter.
As always, IBANYS will continue to closely monitor all developments at the state and federal level, and keep you fully informed as the situations evolve. Stay safe and healthy!
IBANYS 2021 Virtual Education Meetings
Community Bank Compliance Update - Live Webinar
Compliance is one of the most crucial and consuming issues in the financial industry today. The Regulatory agencies encourage all banks to have a comprehensive and well managed compliance program. Compliance officers are responsible for developing and maintaining a bank wide compliance program that includes monitoring and training.
This regulatory update will offer insight and instruction from regulatory agencies and subject matter experts on developing and maintaining a solid compliance program.
Mark Your Calendars & Save These dates -- More Information Coming Soon!!
  • Tuesday, March 2, 2021 - Directors Webinar - 8:30 a.m. - 2:00 p.m.

Watch your emails and the weekly newsletter for more information on these programs and additional dates to be added.
IBANYS Welcomes our Newest Associate Member - Bedel Security
Since 2015, our Bedel Security's has been to change the way community banks manage information security. Our Virtual CISO Services include Governance, Incident Response Planning, Monitoring & Oversight, Risk Management, Board Cyber Awareness, User Testing & Training, Business Continuity, Information Security Policies, and Vendor Management.

Contact: Laura Zeck, Marketing & Office Manager
Phone: 833-297-7681
E-mail: laura@bedelsecurity.com
Optimizing Digital Lending
IBANYS has recently added Upgrade as an associate member and we wanted to provide some information on Digital lending and working with a Fintech.. Sean Downing, many of you recognize the name from his former role at Kasasa, is our Northeast Region manager for Upgrade. Please contact me if you want more info on Upgrade.

Commercial Lending Academy
March 22-26, 2021
Virtual Training

This intensive, week-long workshop is designed to provide immediate, tangible training for employees new to commercial lending and to improve skills of less-experienced commercial lenders.
  • Branch managers
  • Credit analysts
  • Personal and private bankers
  • Entry level lenders
  • Mid-level lenders needing a refresher course
  • Any employee assuming commercial lending responsibilities
  • Loan structuring
  • Loan packages and business writing skills
  • Loan policy concepts and risk ratings
  • Loan pricing concepts
  • Analyzing personal financial statements and tax returns
  • Introduction to business financial statements and tax returns
  • Real estate lending fundamentals
  • Business development and sales skills

  • 42 hours of instruction are scheduled.
  • Enrollment will be limited to ensure greater interaction with the instructor case leaders and peers.
Tuition is $1,195
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
News from ICBA
Nominate your bank's emerging leader today!

ICBA Independent Banker® magazine is now accepting nominations for its third annual 40 Under 40: Emerging Community Bank Leaders awards!
Click here to nominate by Friday, Jan. 29.

We seek to recognize community banking’s brightest, most promising young professionals. Winners will be featured in Independent Banker’s June 2021 issue and honored at ICBA’s LEAD FWD Summit. We’ll judge candidates based on the following criteria:

  • Character
  • Leadership
  • Community involvement
  • Innovation

Follow this link to fill out a brief nomination form. We’ll ask for basic contact information and then we’ll ask you to complete 4 brief, open-ended questions about the nominee.
We look forward to learning about your rising stars and can’t wait to celebrate their outstanding achievements!
ICBA is pleased to announce ICBA Connect to be held on March 9-10, 2021. Get ready for a virtual experience unlike anything you’ve seen before!
This event will bring together great minds from across the nation to celebrate and focus on community banks. Through diverse topics ranging from leadership and strategy, to innovation and inspiration, ICBA Connect will dive into the content that matters most today – all through the lens of community banks. Connect is a chance to discover how community banks are not only navigating the current landscape but leading the way for their communities.

Robert Fisher, President & CEO of Tioga Bank, former IBANYS Chairman and longtime IBANYS board member, is Chairman-Elect. We hope you will join IBANYS and attend virtually as we congratulate Bob, a fifth generation New York community banker.
Earvin “Magic” Johnson and
Matthew McConaughey

This is an opportunity that doesn’t come around every day — to hear from two legends — one of the most talented and decorated players in the history of the NBA and an Academy Award-winning actor, philanthropist, and storyteller.

ICBA is proud to announce during ICBA Connect (March 9-10), a virtual event for your whole team, Earvin “Magic” Johnson and Matthew McConaughey will empower, entertain, and leave you thinking about how you can make a difference in your community.

Connect with these influential figures who have shaped the world—in profoundly positive ways.
Earvin “Magic” Johnson kicks off ICBA Connect with "The Magic of Winning." Magic tells his story of transitioning from the basketball court to the boardroom. Already with a legacy on the court, Johnson currently serves as chairman and CEO of Magic Johnson Enterprises, which provides high-quality products and services that focus primarily on ethnically diverse and underserved urban communities. Johnson takes you on a quest to make a difference in your community.
Matthew McConaughey closes out the program with a one-on-one conversation with ICBA’s very own president and CEO, Rebeca Romero Rainey. After penning "Greenlights," what he calls a love letter to life, McConaughey shares lessons from his life and career, the impact of philanthropy, and the importance of following your passion. McConaughey reminds you to connect with grace, truth and the beauty of being alive. 
Questions to answers
Net interest margin in jeopardy? Here are some solutions.
By Jim Reber
To start out the year, I’d like to both properly memorialize the late, great Alex Trebek and provide some helpful suggestions for investment management for this challenging rate environment in which we find ourselves. And I’d like to do it in the space of this column, so let’s pick up our signaling devices and see what answers we have in front of us.

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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Albany Update

This week, Governor Cuomo delivered his Annual Budget Message, following up on his State of the State remarks last week.

  • In his budget address, the Governor described two potential paths for this year’s financial plan — one he says would result in stability and regrowth if the federal government fills the $15 billion budget gap he’s projecting, and the other he says would result in tax increases and significant, longstanding debt if Washington provides only $6 billion. A tax increase on those making more than $5 million annually year (which Cuomo has resisted, but now has offered his own version if necessary.) Other ‘revenue actions’ proposed included a new state and local sales tax on the vacation home rental industry. IBANYS is reviewing the presentation and will keep you fully informed.

  • Senate Majority Leader Stewart-Cousins, while hopeful for federal aid, said the state cannot continue to wait. “We need to rebuild our economy. . . we can’t just wait for Washington.” Assembly Speaker Heastie has warned the state will “have needs beyond just closing the budget deficit" and estimated it could require “multiples of billions" beyond what is needed to close the budget gap. 

  • The NYS Legislature released its session calendar for 2021. The session opens January 6, and is scheduled to adjourn June 10, and will be primarily virtually. 
Washington Update
The SBA approved approximately 60,000 PPP loan applications submitted by nearly 3,000 lenders and worth more than $5 billion during the program's first week of reopening. In a news release, the SBA said:
  • First-draw PPP loans are for borrowers that did not receive a PPP loan before Aug. 8, 2020.
  • Second-draw loans are for eligible small businesses with 300 employees or less that previously received a first-draw loan.
  • The PPP remains open until March 31 or until funding is exhausted.
President Biden has proposed a $1.9 trillion coronavirus rescue package, the "American Rescue Plan," which includes stimulus measures with the goal of sustaining families and firms until vaccines are widely distributed. https://www.nytimes.com/2021/01/14/business/economy/biden-stimulus-plan.html. The Biden plan includes:
  • Direct payments of $1,400 to most Americans, bringing the total relief to $2,000, including December’s $600 payments
  • Increasing the federal, per-week unemployment benefit to $400 and extending it through the end of September
  • Increasing the federal minimum wage to $15 per hour
  • Extending the eviction and foreclosure moratoriums until the end of September
  • $350 billion in state and local government aid
  • $170 billion for K-12 schools and institutions of higher education
  • $50 billion toward Covid-19 testing
  • $20 billion toward a national vaccine program in partnership with states, localities and tribes
  • Making the Child Tax Credit fully refundable for the year and increasing the credit to $3,000 per child ($3,600 for a child under age 6)
The proposal is the first of two major spending initiatives the President will seek during the first few months of his presidency. The second, expected in February, will likely address longer-term goals of job creation, infrastructure reform, climate change and racial equity.
The FDIC’s board approved a plan, supported by ICBA, to establish an independent office within the agency to review material supervisory determinations. The agency's revised guidelines generally replace the existing Supervision Appeals Review Committee with a standalone Office of Supervisory Appeals. Last fall, in a comment letter, ICBA said that while the best approach is creating a separate appeals office independent of the federal banking agencies, the FDIC plan is a positive step toward a more transparent and independent appeals process.
The FDICOCC, and CFPB issued final rules to clarify and codify the role of supervisory guidance. The rules codify the agencies' September 2018 statement clarifying the differences between regulations and guidance. ICBA commended regulators for the proposal -- but also urged that they go further by defining “supervisory guidance” and clarifying the consequences of violating guidance.
The FHFA said that Fannie Mae and Freddie Mac will extend the moratoriums on single-family foreclosures and real-estate-owned evictions from Jan. 31 until at least Feb. 28. The foreclosure moratorium applies to enterprise-backed, single-family mortgages. The REO eviction moratorium applies to properties that have been acquired by an enterprise through foreclosure or deed-in-lieu-of-foreclosure transactions.