January 27, 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 closing in on IBANYS second educational program of the new year: Our February 4 Regulatory Compliance Webinar, an important half-day webinar that will provide insight and information from regulatory agencies and from subject matter experts -- with a focus on how community banks can develop and maintain a solid regulatory compliance program. Our session is designed for your bank's auditors, compliance officers, BSA officers, risk/fraud officers, inside and outside counsels, and operations officers.We'll hear from the FDIC, the OCC, NYS DFS and Shield Compliance. Please check out the item in today's newsletter, which includes the agenda and registration information.

  • FYI: Next on our meetings calendar will be our March 2 Directors Webinar. Details will be coming soon, so watch this space and your email inboxes.


The SBA is working to improve reviews of first-draw Paycheck Protection Program loans, and said anomalies (due mostly to data mismatches and eligibility concerns) were identified in approximately 4.7% of lender-submitted data. The agency noted the concerns will require follow-up between lenders and borrowers so that borrowers can access a second round of loans, and urged borrowers and lenders to work together as quickly as possible to resolve the issues.

The SBA has approved more than 400,000 loans for approximately $35 billion during the newest round of PPP lending, and is planning additional guidance for lenders and equipping field teams with information to help lenders and borrowers. If you need additional information on the PPP and/or available resources, visit SBA and Treasury sites, tomorrow's ICBA Community Bank Briefing, ICBA's PPP and EIP News page, the Independent Bankers Association of Texas's matrix of PPP updates in the stimulus law, and ICBA's summary of the stimulus package's community banking provisions. Please email me (Johnw@ibanys.net) with questions.

Janet Yellen has been sworn in sworn as the nation's 78th Treasury Secretary, the first woman to lead Treasury in its 231-year history and also the first person to have served as Treasury Secretary, Chair of the Council of Economic Advisers and Federal Reserve Chair.


Legislation is beginning to work its way through the State Legislature, and the Senate and Assembly are reviewing the Governor's budget message, formulating responses and their own revenue proposals.

It's a busy time, and today we itemize what's been happening in our Albany and Washington sections.


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 Congratulates
John Buhrmaster
John Buhrmaster, President & CEO of 1st National Bank of Scotia and IBANYS past Chairman (2015-2016) and current Board member is named a member of the CFPB Advisory Committee in the role of a community bank advisory member and was just elected as one of the Vice Chairs of the Advisory Committee assuming a committee Chair role in October 2021. Being selected as a member of this group from the pool of candidates was a result of his knowledge, experience, and his continued dedicated efforts on behalf of community banks. His input helps provide a high-level voice to their needs and enables him to share the community banking perspective to effect change.
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 - Hartman Executive Adivors
Hartman Executive Advisors is an independent technology advisory firm that works with business leaders to align IT solutions with business goals and strategy.
Hartman is fiercely independent. Unlike other firms that offer IT guidance, Hartman does not sell or profit from any technology solution, so clients know the recommendations they receive are always in their best interest. Business leaders engage Hartman to augment their own internal capabilities, benefit from an advisor’s specialized skills and experience, and eventually, to be able to transfer that knowledge to rising leaders. By developing a deep understanding of the business challenges that arise from misaligned technology, and by uncovering the opportunities that result from strategically aligned technology, Hartman sets the path to advance, cultivate and leverage people, processes and systems to change and transform organizations.

To learn more visit our website or:

Contact: Cindy Atkinson,
Vice President, Relationship Development

Phone: 410-404-5073
Email: catkinson@hartmanadvisors.com
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

  • The Legislature is reviewing and will be responding to Governor Cuomo Annual Budget Message, which in fact 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 also reviewing the presentation and will keep you fully informed.

  • Senate Majority Leader Stewart-Cousins said the state cannot continue to wait for federal assistance. “We need to rebuild our economy. . . we can’t just wait for Washington.” Similarly, 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. Both the State Senate and Assembly Democrats have veto proof "supermajorities".



  • New York State Financial Services Superintendent Lacewell wrote an op-ed in "Law360" on January 15 entitled "6 Ways Financial Regulators Should Prioritize Climate Risk." She wrote that while steps DFS has taken to make sure its regulated financial institutions and insurers address climate change were not easy, they "are beginning to raise awareness and produce results and will continue to bear fruit in the future."
  • https://www.dfs.ny.gov/reports_and_publications/press_releases/pr2021152

Washington Update
Among the new officials nominated (or anticipated to be named) to key positions in the Biden administration with a direct or indirect impact on the economy and financial services are: 
  • Janet Yellen (Treasury Secretary); 
  • Cecelia Rouse (Chair, Council of Economic Advisers); 
  • Isabel Guzman (Small Business Administrator); 
  • Gina Raimondo (Secretary of Commerce); 
  • Brian Dees (Director, National Economic Council); 
  • Gary Gensler (Chairman SEC); 
  • Rohit Chopra (Director, Consumer Financial Protection Bureau); 
  • Michael Barr (expected to be nominated as Comptroller of the Currency);
  • Neera Tanden (OMB Director)  

The U.S. Federal Reserve will name Kevin Stiroh, who led bank supervision at the New York Fed, to lead a newly-formed "Supervision Climate Committee." It will focus specifically on financial risks posed by climate change and study what climate change could mean for banks and financial markets. The New York Fed said it will launch a formal search for Stiroh’s replacement in the coming weeks.

In Congress, the new Senate Banking Committee Chairman, Sherrod Brown (D-Ohio), announced his committee agenda and priorities. They include improving housing and banking services for low-income Americans, fighting global warming and fostering racial equality -- but Chairman Brown stated the committee’s first job will be supporting the President’s new economic recovery package, including another round of stimulus checks.
In the House, Banking Committee Chair Maxine Waters (D-California) continues in her position. Among the Democrats named to the Committee were five New Yorkers: 
  • Carolyn Maloney (D-Manhattan/Queens);
  • Nydia Velázquez (D-Brooklyn);
  • Gregory Meeks (D-Queens/Nassau County);
  • Ritchie Torres (D-Bronx);
  • Alexandria Ocasio-Cortez (D-Bronx/Queens)
  • Rep. Lee Zeldin (R-Suffolk County) is the sole New York Republican on the Committee to date.

Democratic Subcommittee assignments were also made. Reps. Maloney and Meeks will serve on the Subcommittees on Investor Protection, Entrepreneurship & Capital Markets; Maloney is also on Housing, Community Development & Insurance, as are Reps. Velazquez and Torres. Meeks, Torres and Rep. Velazquez are on Consumer Protection & Financial Institutions. Torres and Rep. Ocasio-Cortez are on National Security, International Development & Monetary Policy.

There are at least new members of the New York Congressional Delegation. They are:
  • Andrew Garbarino (R-2nd CD)
  • Nicole Malliotakis (R-11th CD)
  • Ritchie Torres (D-15th CD)
  • Mondaire Jones (D-16th CD)
  • Jamal Bowman (D-17th CD)

In addition, the race between incumbent Democrat Anthony Brindisi and former GOP Congresswoman Claudia Tenney is still undecided and in the courts for review.


  • ICBA's next Community Bank Briefing with an update from Washington is set for 2 p.m. (Eastern time) tomorrow, Jan. 28. During the complimentary 60-minute webinar, ICBA experts will provide updates on legislative activity, address recent Paycheck Protection Program announcements, and answer questions from attendees. Register here.


  • ICBA President and CEO Rebeca Romero Rainey congratulated Treasury Secretary Janet Yellen on her confirmation for Treasury secretary: "ICBA and the nation's community bankers congratulate Janet Yellen on her confirmation to serve as the next Treasury secretary. As former Federal Reserve chair, Council of Economic Advisers chair, and Federal Reserve Bank of San Francisco president, Dr. Yellen understands the vital role that community banks serve in local communities and their leading role in addressing the economic challenges of the coronavirus pandemic. "The financial, tax and regulatory policies advanced by Treasury have a genuine impact on the community banking sector’s ability to continue serving their individual and small-business customers nationwide. ICBA and community bankers look forward to continuing to work with Secretary Yellen as we support economic recovery in local communities."


Senate Majority Leader Schumer is ready to move forward with Senate Democrats on President Biden's $1.9 trillion stimulus -- perhaps next week, and likely through a budget resolution and a reconciliation bill. Republicans continue to hold off supporting the economic relief package, preferring a more targeted and smaller approach. There is support for targeting the aid only to low- and moderate-income families, citing data suggesting that would provide the most needed and effective boost for the economy. The President would prefer the bill to have bipartisan support, and a bipartisan solution is still being discussed. White House economic adviser Brian Deese met with the bipartisan Congressional "Problem Solvers Caucus," co-chaired by New York Rep. Tom Reed (D-Southern Tier). The Biden "American Rescue Plan" would provide stimulus measures with the goal of sustaining families and firms until vaccines are widely distributed. It 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 IRS has issued guidance clarifying that SBA payments on existing 7(a) and 504 loans under Section 1122 of the CARES Act are no longer considered taxable income to the borrower. The change means lenders will no longer be required to furnish SBA borrowers with 1099-MISC forms. The guidance also reiterates that proceeds from PPP forgiveness, Economic Injury Disaster Loans, and other stimulus programs are not considered taxable income for recipients. However, these waivers do not affect requirements to file and furnish other forms, such as 1098 forms on mortgage interest payments that may be deducted.