September 2, 2020
IBANYS Weekly E-Newsletter
  • Visit our website at www.ibanys.net to review all our daily updates on COVID-19 beginning on March 16.
The President's Message:
IBANYS News and Updates
By John Witkowski, President & CEO

As we move into September, IBANYS is busy on a number of fronts on behalf of New York community banks. We are putting the final touches on our first-ever all virtual convention that will be September 30 - October 2. We are closely monitoring legislative and regulatory developments in both Albany and Washington, and have been in contact with our state and federal lawmakers and agencies to make known the needs of community banks as they continue to address the "new normal" brought about by the pandemic. We continue to explore and develop new opportunities for our members as they move forward with their own operations. The FDIC released its new state profiles for the second quarter of 2020. and we have the latest information on New York State. . . And, there are opportunities for New York community bankers to serve as an ICBA's federal delegate, and to nominate candidates for the New York Women in Banking Awards.
 
We detail all the aforementioned and more in today's newsletter, and hope you take a moment to read through it and share it with your colleagues in the bank.

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In just over one month, IBANYS will host our 2020 Virtual Annual Convention, which will be held September 30 - October 2. In the midst of the changes caused by the pandemic, our virtual convention is an innovative way for all of us at IBANYS to provide important and timely educational programming to New York community bankers -- just as we have always done in the past in our in-person programs. Please take a moment to read the many updates in today's newsletter about this new and exciting approach, learn how your bank can participate and be a part of this event in our new “normal”. We have information on topics, speakers, sponsorship opportunities and the opportunity for banks to make the virtual convention available to all bank employees. It's our way of continuing to provide the important information your banks need.

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The Banking New York Magazine is reaching out to our industry leaders and partners asking you to nominate exceptional and qualified candidates for the New York Women in Banking Awards. Please take a few minutes to nominate a friend or colleague who you believe is deserving of being honored in our New York Women in Banking feature. Please click here to submit your nomination or view additional information. The deadline to submit your nomination is Thursday, September 4.


The FDIC issued its state profiles for the second quarter of 2020. FDIC State Profiles is a quarterly summary of banking and economic conditions in each state. To read the profile of New York, click here.
Here is the link as well. https://www.fdic.gov/bank/analytical/stateprofile/newyork/ny.pdf

The FDIC's Quarterly Banking Profile reported that Community bank net income increased 3.2 percent in the second quarter from the same time last year. That contrasts with the overall banking industry's 70 percent decline in net income, due to the economic impact of the coronavirus pandemic. More than half of community banks reported higher net income despite a 273.2% increase in provision expenses. The increase was driven by gains on the sale of loans (up 142.2%) and securities (up 130.7%). Community banks reported year-over-year loan growth of 13.5%, driven by Paycheck Protection Program lending. The net interest margin for community banks decreased 17 basis points year-over-year to 3.51%, as the decline in average earning asset yields outpaced the decline in funding costs.



IBANYS VIRTUAL CONVENTION
SAVE THE DATES
September 30 - October 1-2, 2020
NEW INFORMATION: IBANYS is adapting to the new normal brought about by the pandemic including switching our 2020 Annual Convention to a “Virtual” Convention this fall. The 2020 IBANYS “Virtual” Annual Convention will take place starting Wednesday, September 30 – Friday, October 2, 2020. Banks can register for one price, and the event will be open for all bank employees. Employees may attend all or just some of the sessions. CPE credits will be awarded. Each week we will feature our speakers who will share their knowledge and expertise during this event. Registration materials will be sent to your email with very soon. We hope you and your team will be a part of the this year's event.

We would like to thank our all of our generous sponsors of this event and their continued support of IBANYS and all community banks. Please take a moment to click on the company logo below to learn more about each sponsor and how they help the community banks.

If you would like to be a sponsor, please contact me at johnw@ibanys.net or 518-436-4646 for details.
Meet the Speakers
Tina Giorgio, AAP, President & CEO, ICBA read bio here

Bancard Building Your Bank's Digital Payments Strategy
There is a lot of buzz about payments – real-time payments, faster payments, digital wallets – the list goes on. What solutions are just buzz and what solutions are here to stay? And more importantly, how and when does a community bank deploy them? This session will give you a high-level look at what is happening and what you should consider when developing a strategy.
José R. González, President & CEO - Federal Home Loan Bank of NY read bio here

A Stable Partner and a Strong Culture
José R. González, president and CEO of the Federal Home Loan Bank of New York, will discuss the FHLBNY’s efforts throughout the pandemic to support its members, its employees and the communities we all serve.

Pam Perdue, Executive Vice President and Chief Regulatory Officer, Continuity read bio here

Regulatory Trends and Forecast
Compliance is a "dirty word" to many bank executives, because it's often difficult to identify and avoid the regulatory pitfalls that can impact plans for recovery, growth or innovation. In the first 7 months of 2020, we had as much new regulatory information and guidance as in all of 2019. In these challenging times, you need more than statistics - you need straight talk and actionable recommendations to understand how to be strategic about compliance and risk management in uncertain times. After attending, you will be able to:
  • Understand the regulatory context for banks in New York and the U.S. post-pandemic and post-election; 
  • Predict the factors that will influence upcoming bank examinations given economic factors and trends;
  • Identify the criteria that regulators will be using to evaluate your institution's performance; and 
  • Figure out a framework that allows you to maintain compliance with efficiency and effectiveness - no matter what happens at the Statehouse or the Capitol.

Jeff Marsico, Executive Vice President, Kafafian Group read bio here

Culture and Strategy: Is The Pandemic An Opportunity To Create Alignment?
Most everyone wants a profitability culture. But how to build one is difficult. Bankers are weighed down by the expectations of employees that come from other institutions, and “the way it has always been done”. Does the disruption from the pandemic give you the opportunity to build strategic alignment if you’ve drifted? Alignment for all functional areas of the bank to maximize profits to benefit all constituencies: employees, customers, shareholders and community? For example, do you incent your commercial lenders on volume? Is this aligned with profitable behavior, balancing risk versus reward? Are operational areas held accountable for no audit findings or exam MRAs? Is this consistent with your profitability culture? This session will map alignment from your UBPR to your lender, branch manager, head of deposit operations with ideas to align your culture with your strategy that you can implement immediately.

Steven Greenberg, Founder and Principal of Greenberg Public Relations (click for here for bio)

Keynote Speaker:
Wednesday, September 30

Insight on the Political and Electoral Landscape
 
Steve Greenberg is a veteran political analyst and commentator who will preview the critically important 2020 Presidential election for community banks.

Patrick MacKrell, President, Pursuit Lending read bio here

Trends in Small Business Lending
The COVID-19 crisis has dramatically shifted the small business lending landscape. Small businesses, and in particular the very small, are not seeking the same types of products and services that they have in the past. In this session, attendees will gain insight on current trends in small business lending, and learn about alternative loan products that can help businesses succeed when bank financing is not an option.



Our Convention Sponsors
Click each company to learn how they can help your bank.
Preferred Partner
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.)
IBANYS Preferred Partners & Associate Members

The ICBA Federal Delegate Board (FDB) election process began this week when nominating petition letters were emailed to all ICBA member banks in New York. To qualify to become a delegate, nominees must be Executive Officers (as defined by Reg O) of a financial institution that has been a paid active ICBA member bank for at least 3 years and must have been active with ICBA or the state association by previously serving on a committee, council or task force. Bankers can nominate themselves and will need three ICBA member bankers to support his or her candidacy for their petition to be considered valid and complete. IBANYS Chairman, Michael Wimer, is finishing up the final year of his second three-year term and cannot run again. We thank Mike for his outstanding service on behalf of New York community banks.
Election Process and Schedule
 
  • September 1 - Election process begins when self-nominating forms for state delegate on the Federal Delegate Board are sent to ICBA member banks in the state. 
  • September 21 – Completed nomination forms must be returned by candidates along with the signatures of three ICBA member bankers supporting the candidacy.
  • October 1 - Election ballots are sent to member banks. (In the event that only one name is submitted, they will automatically become the new state delegate and no ballot will be necessary.)
  • October 15 – Votes must be received by ICBA.

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The NextGen Scholarship is Back!

The LEAD FWD Summit is Sept. 21-22 and offered in virtual format
 
Due to the success of last year's NextGen scholarship program, we are excited to announce that ICBA is once again offering this exciting scholarship opportunity for our state association friends.
 
With the ICBA 2020 NextGen Scholarship you have an opportunity to award one community banker from your membership a fully-paid scholarship to ICBA's virtual leadership conference, the 2020 LEAD FWD Summit (Sept. 21-22).
 
This is your scholarship to award to a deserving community banker in your state! We’re thrilled to assist you in further engaging the future of our industry and we’re delighted to partner on this NextGen Scholarship opportunity. For more details, including how to participate, please refer to this informational brief and our ICBA State and Regional Partner web page where you will find customizable promotional tools and assets.
Kickoff!
A football fan’s guide to portfolio management
By Jim Reber
As the calendar turns to the fall, millions of Americans gear up for their favorite sport of football. Of course, with this being a year unlike any other, we’re still trying to figure out what it will look like. Nonetheless, what better way to usher in the new football season than to relate common gridiron phraseology to its investment portfolio equivalent? Some of this may sound like a stretch for the sticks, but perhaps you can find a loose ball in the pileup. If so, hopefully you can convert the takeaway into a visit to the sweet land of six.

Albany Update
The New York State Department of Financial Services (DFS) has issued guidance instructing regulated mortgage lenders and servicers not to charge consumers for mortgage default registration fees. Mortgage lenders and servicers must provide refunds to consumers, and keep log of all consumers who paid registration fees for DFS examination. To read the full guidance:
 
State and local governments in New York need $59 billion in federal aid or across-the-board spending cuts are likely, Governor Cuomo warned Monday in a letter backed by prominent labor leaders. https://nystateofpolitics.com/state-of-politics/new-york/ny-state-of-politics/2020/08/31/cuomo--labor-leaders---59b-in-federal-aid-needed-
State legislators still plan to hold a session this month to likely address the state's finances. The economic shutdown triggered by the COVID-19 pandemic has resulted in a $14 billion state budget deficit, with projections of up to $30 billion by 2022, according to Governor Cuomo. Among the revenue-raisers being discussed are:
  • Eliminating the rebates the state currently provides on stock transfers;
  • Enacting higher income taxes on those with more than $1 million in annual income, and creating a new tax on super wealthy people with more than $1 billion in assets. (However, the Governor this week doubled down on his claim that increasing taxes on the wealthy could not do anything significant to resolve the fiscal situation.)
  • State senators have also urged Congress to find a funding solution for New York's schools, as the state withholds 20 percent in funding amid the recession created by the coronavirus pandemic.
  • Legislators have also turned to the New York City real estate market for relief by reviving talk of the “pied-à-terre” property tax surcharge on qualifying non-primary residences within the state. https://www.natlawreview.com/article/covid-19-real-estate-revival-new-york-pied-terre-tax; Please click here to access the full text of the proposed Senate Bill S44A.
 
The Legislature is likely to also consider additional forbearance legislation for residential and commercial investment property mortgage payments. That may include A.10532A, Bichotte (see link below). IBANYS opposes the legislation (see second link below and is working with the Legislature and the NYS DFS.
 
 
DFS FAQ On Forbearance For Residential Mortgages Held In Portfolio By NYS Chartered Banks
The NYS Department of Financial Services (DFS) has issued the "Frequently Asked Questions (FAQ) document on the state's new Residential Mortgage Forbearance Law on forbearance for residential mortgages held in portfolio by NYS chartered banks. IBANYS would like to thank the DFS team for providing guidance through this document, which IBANYS had suggested.
The FAQ document may be accessed through the link below:
Washington Update

Treasury Secretary Mnuchin told the House select subcommittee on the coronavirus crisis that he would call House Speaker Pelosi on a coronavirus relief package and that he believed a bipartisan bill could still be reached, although a later statement by Pelosi suggested that the Trump administration and Democratic lawmakers are still far apart on an approach to any legislation. In her statement, Pelosi said that the two parties "continue to have serious differences understanding the gravity of the situation that America's working families are facing." Senate Republicans announced the chamber will take up a vote next week on a GOP proposed smaller stimulus package, essentially as a "placeholder" for further negotiations.
 
 
IBANYS Urges New York Congressional Delegation To Support PPP Changes
As the stalemate between Congress and the Trump administration regarding the next coronavirus legislative package continues, IBANYS has written to the New York Congressional Delegation (and shared the letter with members of the NYS Legislature as an FYI) urging support of a number of important changes ICBA has suggested be made to the Paycheck Protection Program. Read IBANYS' letter to Congress. Read IBANYS letter
 
 
The Trump administration is also ordering a halt on evictions through December for tenants who can't pay rent due to the coronavirus pandemic, via the Centers for Disease Control and Prevention's public health powers, and will impose criminal penalties on landlords who go ahead with evictions despite the ban.
 
Also, according to a USDA Rural Development notice, foreclosures and related evictions for borrowers with USDA single-family housing direct and guaranteed loans are suspended through Dec. 31. The extension follows extended moratoriums for certain Fannie Mae, Freddie Mac, and Federal Housing Administration mortgage loans. The USDA also extended the temporary exceptions on Single Family Housing Guaranteed Loan Program appraisals, repair inspections, and income verifications until Nov. 30. Separately, the USDA's Farm Service Agency reminded farmers and ranchers that the deadline to apply for the Coronavirus Food Assistance Program is Sept. 11. This program provides direct relief to producers who faced price declines and additional marketing costs due to COVID-19.


ICBA urged Congress to direct federal regulators to exclude Paycheck Protection Program (PPP) loans from bank and bank holding company asset threshold calculations. ICBA noted the surge of PPP loans has swelled the balance sheets of community banks, and that absent a legislative fix, asset-size growth will inadvertently push many community bankers over regulatory thresholds and subject them to additional supervision, regulations, and costs. Whereas banks normally have advanced notice that they are close to crossing an asset threshold and invest in a strategic plan to comply with additional regulations, rapid asset increases due to PPP lending have caused temporary balance sheet inflation. ICBA noted: "This is an exceptional circumstance and bank regulation must be flexible enough to account for it rationally and ensure that PPP lenders are not punished with regulatory costs simply for their participation in an emergency program."



ICBA continues urging community bankers to call on policymakers to overturn Fannie Mae and Freddie Mac's decision to charge a 0.5 percent fee on refinance mortgages. Community bankers can use ICBA's Be Heard grassroots action center to tell Congress to insist that the enterprises and the Federal Housing Finance Agency reverse the policy, which would cost the average homeowner $1,400 amid the COVID-19 pandemic. In American Banker, ICBA's Ron Haynie wrote that the new “adverse market" fee comes at a significant cost to homeowners at precisely the wrong time. "For many Americans, $1,400 means a lot," he wrote. Haynie also discussed the fee hike in a separate American Banker report, noting that it will lead to slightly higher interest rates for borrowers that will noticeably increase payments.


ICBA Seeking ILC Grassroots Outreach
ICBA continues calling on community bankers to urge their senators to co-sponsor legislation to close the industrial loan company loophole. The customizable message on ICBA's Be Heard grassroots action center notes that ILCs pose a significant risk to the financial system and should be regulated like other banking institutions. The Eliminating Corporate Shadow Banking Act (S. 2839) would subject ILCs to the Bank Holding Company Act. ICBA recently called on the FDIC to deny Rakuten Bank America’s resubmitted ILC application and urged the agency to strengthen its proposal to enhance oversight of ILC parent companies.
Additional Information


News Release | NR 2020-114 September 1, 2020

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today announced it will host a public meeting of the Mutual Savings Association Advisory Committee (MSAAC) on Tuesday, September 22, 2020, via webinar. The teleconference is open to the public and will begin at 8:30 a.m. Eastern Daylight Time (EDT).
 
The purpose of the MSAAC meeting is to advise the OCC on regulatory or other changes the OCC may make to ensure the continued health and viability of mutual savings associations.
 
Members of the public may submit written statements to the MSAAC by sending an e-mail to MSAAC@occ.treas.gov. The OCC must receive written statements no later than 5:00 p.m. EDT on Tuesday, September 15, 2020.
 
Members of the public who plan to attend the meeting via webinar or require assistance should contact the OCC by 5:00 p.m. EDT on Monday, September 15, 2020, to inform the OCC of their desire to attend the meeting and to obtain information about participating in the webinar. Members of the public can contact the OCC by emailing MSAAC@occ.treas.gov or by calling (202) 649-5420. Attendees should provide their full name, email address, and organization, if any. Members of the public who are hearing impaired should call (202) 649-5597 (TTY) by 5:00 p.m. EDT, Tuesday, September 15, 2020, to make necessary arrangements.
 
Related Link

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News Release | NR 2020-113 September 1, 2020

 
WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released its schedule of Community Reinvestment Act (CRA) evaluations to be conducted in the fourth quarter 2020 and first quarter 2021.
 
The OCC encourages public comment on the national banks and federal savings associations scheduled to be evaluated under the CRA. Public comments should be submitted to the institutions themselves at the mailing addresses listed on the schedule or to the appropriate OCC supervisory office prior to the month in which the evaluation is scheduled. However, the OCC will consider all public comments received prior to the close of the CRA evaluation.
 
The CRA evaluation schedule is available on the OCC’s website at: www.occ.gov/static/cra/exam-schedule/craq420.pdf.


Five federal regulatory agencies today announced they will extend the comment period on a proposal to revise the Interagency Questions and Answers Regarding Flood Insurance (Interagency Questions and Answers) until November 3, 2020. The agencies are extending the comment period because of the extent of the revisions proposed by the agencies and in light of the challenges associated with the COVID-19 pandemic. The extension will allow interested parties additional time to analyze the issues and to prepare comments. The proposed Interagency Questions and Answers, which were issued in July 2020, provide information addressing technical flood insurance-related compliance issues. The previous deadline for comments was September 4, 2020.
https://www.occ.gov/news-issuances/news-releases/2020/nr-ia-2020-116.html