November 4, 2020
IBANYS Weekly E-Newsletter
  • Visit our website at to review all our daily updates on COVID-19 beginning on March 16.
The President's Message
By John Witkowski, President & CEO

Election Day once again demonstrated how evenly divided our country is politically, and was -- and still is -- a nail-biter. We do not yet have clarity as to who will win the presidency. It appears Republicans retained their majority in the U.S. Senate, but that is not yet official due to a number of races not yet called and the likelihood that there will be runoff elections in January involving a Georgia seat (or seats). The GOP definitely did gain seats in the House, so Speaker Pelosi will have a smaller majority. Our New York Congressional Delegation will have a number of new members,

In Albany, Democrats will continue to control both the State Senate and Assembly, but it looks doubtful they will gain a veto-proof "supermajority" in the Senate.

It may be days -- or even longer -- until the dust settles and we have a complete picture of all the election results. Clearly, IBANYS will be closely monitoring, and remain engaged on behalf of New York community banks, as policies that will address the financial and banking industry and the pandemic will be impacted. 

Please note: Bank membership dues invoices have been mailed.
IBANYS Welcomes our Newest Member Bank
We would like to welcome Maspeth Federal Savings Bank. Maspeth was founded in 1947 by Alexander E. Frontera with only 2 teller stations. Today, the bank has grown to employ over 200 people and has six full-services branches, a loan center and a full array of digital online services.

IBANYS Preferred Partners & Associate Members
Tomorrow (Thursday, November 5, 2:00-2:45 pm), QwikRate and IntelliCredit will host a webinar on the actual state of credit quality: "Q3 Results Are In – What Is the True State of Credit Quality?" will cover subjects of interest to community bankers, such as:

  • Am I feeling better about the outlook for the pandemic and, in turn, the economy? 
  • What is the true state of credit quality? 
  • What will 2021 look like? 
  • What areas are improving, what areas are declining? 
  • What do I need to prepare for in 2021? 
  • Has our loan review been scheduled? 
  • The stress test . . .?
This webinar will use QwickAnalytics to break down the numbers of true community banks to see where the industry is, and where it’s headed for the rest of 2020. REGISTER AT:
Things You Never Thought You’d Say
COVID-19 has created a lot of first-ever conversations.
By Jim Reber
It may be a gross oversimplification to say this, but in many ways, community banks deal with their favorite broker the same way you deal with your dry cleaner. For one thing, there’s repeat business; we’re not a durable goods vendor that you visit every three years. For another, fixed-income brokers sell a set of relatively fungible products. For another, since there are plenty of us out there, we’re obliged to stay pretty much on-market with our prices.

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
In yesterday's election, Democrats retained control of both the State Senate and Assembly on Election Day, but will apparently fail in their effort to win a veto-proof "supermajority" in the Senate. However, Assembly Speaker Heastie and Senate Leader Stewart-Cousins will continue to hold large majorities. There will be a number of newly elected legislators, and IBANYS will reach out to them to inform and educate them about New York community banks.
IBANYS continues to monitor whether the State Legislature will reconvene in a "lame-duck" post-election session. The agenda could well include additional forbearance legislation for residential investment properties and commercial retail space mortgage payments. IBANYS opposes the legislation, and is working with the Legislature and the NYS DFS. To access the legislation, and IBANYS' Memo in Opposition: Click here to read the legislation. Click here to read IBANYS Memo in Opposition. The major focus of the Legislature will be on the state's financial and fiscal situation. Governor Cuomo continues to hope for eventual federal assistance, but the Legislature may explore other options to raise revenue.
The New York State Department of Financial Services (DFS) has advised New York-Regulated financial institutions to integrate financial risks from climate change into their governance frameworks, risk management processes, and business strategies. The guidance issued by Superintendent Lacewell follows a similar guidance to New York-Regulated Insurers. Read a full copy of the letter on the DFS website. . .To read the DFS press release on the guidance:
Washington Update
As a result of the election, it currently appears there will be six new members of the New York House delegation following yesterday's election. Barring any late changes due to absentee votes, the new Representatives include:
  • Democrats Ritchie Torres (15th CD, Bronx); Jamaal Bowman (16th CD, Bronx/Westchester) and Mondaire Jones (Rockland/Westchester);
  • Republicans Andrew Garbarino (2nd CD, Nassau/Suffolk); Nicole Malliotokis (11th CD, Staten Island/Brooklyn) and Claudia Tenney (22nd CD, Central NY/Southern Tier).
The GOP "flipped" two seats, defeating incumbent Democrats Max Rose (11th CD) and Anthony Brindisi (22nd CD), and will hold 8 of the 27 seats in the state's delegation. IBANYS will be reaching out to new members of the delegation to ensure they have a full understanding of community banks, and the vital role we play in new York's economy -- including during the PPP. New York will also lose considerable seniority , with retirements by Peter King, Nita Lowey, Jose Serrano and Eliot Engel.
Meanwhile, with the 2020 election results still being tabulated, ICBA offers an analysis for community banks based on currently available data. ICBA will continue to provide follow-up analysis and will update the resource as more information becomes available. As IBANYS does at the state level, ICBA supports community bank-friendly candidates in a bipartisan fashion and, whatever the outcome of these elections, is well positioned to advance the public policy objectives of community banks in the incoming 117th Congress. DFS plans to issue an industry letter on Climate Change this Thursday – discussing regulatory expectations and seeking a dialogue with the industry.  
To Read the ICBA Election analysis: l
  • Legislation introduced by Sen. Lee (R-Utah) would protect borrowers and lenders from regulatory penalties associated with the Paycheck Protection Program (PPP) after ICBA raised the issue with policymakers. The Protections for Good Faith PPP Borrowers and Lenders Act (S. 4875) would remove PPP loans from asset calculations to prevent lenders from crossing asset-size thresholds and incurring additional regulatory burdens. It also would protect lenders from various penalties and enforcement actions and remove PPP loans from the CFPB's purview. The Senate bill follows the release of ICBA-advocated House legislation directing regulators to exclude PPP loan balances from bank and bank holding company regulatory thresholds within 30 days. H.R. 8675 applies to community banks with $15 billion or less in total assets.
  • While ICBA works with policymakers to address Economic Injury Disaster Loan Advance deductions from PPP forgiveness amounts, it continues encouraging community bankers and their small-business contacts to weigh in with Congress. Community bankers can direct borrowers to ICBA's small-business alert on the EIDL-PPP conflict and use ICBA's separate grassroots alert for community bankers. More than 1 million PPP borrowers are beginning to realize their EIDL advance grants are converting to as much as $10,000 in unexpected debt during the PPP forgiveness process. The conflict also has left community banks with balances on their books for EIDL advances originated by the SBA. While legislation to address the issue has been introduced in Congress, ICBA is urging community bankers and small-business owners to ensure this problem gets the attention it deserves in Washington.
IBANYS previously urged 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 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