June 3, 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  
Hoping everyone is continuing to stay safe and healthy.

As more regions in New York State continue to gradually reopen their economies, our state and nation were thrust into a different kind of crisis this week as civil unrest has swept through many areas of New York and the United States. Meanwhile, the New York State Legislature reconvened last week for the first time in two months, and passed a number of coronavirus related initiatives, including bills addressing mortgage forbearance and a moratorium on evictions. We cover both these actions in our Albany update in today's newsletter.

In Washington, the U.S. Senate will soon consider making changes to the Paycheck Protection Program (PPP) -- the House passed its version last week. ICBA and IBANYS are urging New York community bankers to review the explanation and use the procedure that are included in our Washington update below to urge Senators Schumer and Gillibrand to support these important "tweaks" to the PPP.
. . . . .
IBANYS held another Executive Management Group Discussion Call late last week with the new Acting Comptroller of the Currency, Brian Brooks, Deputy Comptroller for Northeastern District Beverly Cole and Director for Banking Relations Ralph DeLeon . Among the items discussed:
  • OCC priorities and plans both COVID-19 related and non-COVID-19 related;
  • Updates on what lies ahead;
  • The OCC's CRA Rule;
  • Its Supplemental Leverage Rule (SLR);
  • Changes and fixes implemented to the PPP;
  • Small Dollar Lending;
  • Potential small business delinquencies in the future;
  • The need for banks to have loss mitigation strategies in place regarding post-CARES Act mortgage-forbearance
  • The fact that OCC will be conducting its exams remotely for the foreseeable future.

IBANYS has now held these Executive Group Discussion Calls with top officials from the OCC, Small Business Administration, Federal Home Loan Bank of New York. We plan to continue the calls at least through June. If you are not currently participating and would like to, please email John Witkowski or Linda Gregware. 
. . . . .
As our economy moves through the stages of reopening and we all seek "the new normal" IBANYS will continue to provide New York community banks with timely information and committed advocacy. . .and that will certainly include re-examining your bank's strategic vision for the future. IBANYS works with a number of companies that can help position the bank, provide direction on the future and/or implement products and services that can assist your bank and your clients.

Please contact IBANYS if you have any specific questions about the companies in the newsletter.

. . . . .

Finally, IBANYS congratulates Patrick Sells, Chief Innovation Officer at Quontic Bank (headquartered in Manhattan) for being named a member of the 2020 "40 Under 40: Emerging Community Bank Leaders" by the Independent Community Bankers of America. Patrick was r ecognized as "Emerging Leader for Driving Digital Innovation & Attracting New Talent to Community Banking." Congratulations, Patrick!

-- John
There are articles, webinars and additional information that you may find helpful and informative listed below under Preferred Partners & Associate Members additional COVID-19 Information .

All COVID-19 Updates from IBANYS can be found on our website: click here (March 16 - current)

How a twentysomething marketing entrepreneur helped transform a small community development financial institution into a digital leader.

ICBA Independent Banker Unveils Community Banking Industry’s 40 Under 40
Winners share commitment to customers, innovation and relationship banking

Washington, D.C. (June 1, 2020)— Independent Banker magazine, the award-winning monthly publication of the Independent Community Bankers of America® (ICBA), today unveiled its annual 40 Under 40: Emerging Community Bank Leaders list. The award recognizes the nation’s up-and-coming community bank innovators and influencers who represent the future of the industry.

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:
T okens 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.)
Other Revenue & Income Generating Programs Products and Services
PURIFY GLOBAL offers high level disinfection services, specializing in end-use fogging application on various types of surfaces for advanced decontamination. Our services ensure thorough disinfection for both high-contact and low-contact areas, effectively prevents recontamination, and sets to improve the quality of life for employees, patients, and the general population.
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Once applied, the solution takes just 10 minutes to dry. Room is then able to be re-occupied. It would be 100% to go in immediately after. The 10 minutes is drying time.
Here are just a few of the other clients we are working with.
  • Wegman's - All stores on a weekly basis
  •  Phillips Lytle - All offices (Buffalo, Rochester, Albany, and NYC)
  •  Niagara Wheatfield Central School District - Daily disinfect of over 600,000 sf
  • Ted's Hot Dogs - All WNY stores
  • Buffalo Medical Group

Mike Jackson
Office: (585) 510-2600    Mobile: (716) 579 0719
IBANYS Preferred Partners & Associate Members &
Additional COVID-19 Resources

Losses have been extremely low for the last several years which means the Quantitative loss allocation has had a minimal impact on the reserve. Collateral values have been either increasing or stable, resulting in a minimal impact on the reserves for impaired loans. The pre-pandemic focus had been primarily on determining the amount to reserve via Qualitative Factors (QF’s), which made up almost the entire reserve for many financial institutions.

For institutions that had transitioned to CECL, shifting the reserve allocation from using QF’s to using the Quantitative Life of Loan Losses was already taking place. In most cases, the results were a relatively modest bump in the amount of the reserve. The benign economic environment meant that reserves continued to be a significant multiple of actual losses.

Webinar Series - Tuesday June 9, 2020 - 2:00-3:00 PM EST
New York's Economy:
The Path to Reopen and Recover
Can New York look to restart its economy without inviting another surge of infections? How do we transition back from a crisis that has crippled so many businesses, and left so many unemployed?
Hear from Lt. Gov. Kathy Hochul, and Congressman Thomas Suozzi (of the White House Task Force to Reopen) on what realities we should be prepared for, and what resources are available.
Guide to Securing ITMs From Fraudulent Deposits
Interactive teller machines (ITMs) provide customers with on-demand banking experiences, extend banking hours as well as geographic footprint. But are they as secure as they need to be? 

Read Advanced Fraud Solutions' latest white paper on securing deposits.

Kicking the can
Congress and the Fed are on a spending spree.
By Jim Reber
If you ultra-busy community bankers have been able to catch some of our policymakers commenting on the waves of fiscal and monetary stimulus rushing toward the U.S. consumer, what you heard essentially translated into an elaborate game of Kick the Can. Please note that I said “elaborate” and not “elegant.”

Bank Stock Perfomance and M & A Update
The market crash in March 2020 brought an end to the longest U.S. expansion ever recorded. The Dow, S&P and NASDAQ plummeted35%, 31% and 24%, respectively, from year-end highs to levels not seen since 2016. After massive fiscal and monetary stimulus, lockdowns ending and promising treatments for coronavirus and hopes for a vaccine, markets have improved. The Dow, S&P and NASDAQ have increased 16%, 18% and 23%, respectively, from the end of March to May31.

Fixing Future Earnings Problems, TODAY.
June 9 & June 10 at 10am CT - (2) ONE-HOUR

For over 25 years, Performance Trust has been a leader in empowering community bank executives to make better financial decisions through education & a disciplined, math-based process. Better decisions mean better results. And better results mean you stay independent, you keep your jobs, and you continue doing good in your community.

Once and for all, we will be delivering 2 hours of actionable strategic advice on how to ensure your independence. These value packed sessions will touch on: how to stress test your enterprise risk (both credit & earnings), how to address the pain of rates down on your balance sheet, and how to intelligently find assets to offset earnings pressure. All done while adhering to the time-tested Shape Management lens.

Christopher W. Schutt
Director, Performance Trust
P 312 521 1631 │ C 312 584 6100 
Bringing you the latest news and trends.

We understand the factors that impact you the most. We sort through the mass of information available to provide you with significant insights and important industry trends. We help you stay on top of changes and advancements in your industry so you can keep your business running on the cutting edge. Count on us to keep you in the know.

Albany Update
Legislature Passes Mortgage Forbearance Chapter Amendment

The Legislature has passed a Chapter Amendment to the residential mortgage forbearance legislation initially passed by the Legislature Wednesday. (See the link below to read the actual language. "Part C" is the forbearance chapter amendment, included with several other chapter amendments). 

The Forbearance Chapter Amendment was passed Thursday night by the Senate and early Friday morning by the Assembly. It will be sent to the Governor for his signature. This initiative is targeted only at state chartered banks. Federally chartered banks are not impacted. (Interestingly, the credit unions supported the legislation.) 

IBANYS issued a strong Memo in Opposition to the original legislation, and continued to work with the Legislature, Governor's Office and NYS Department of Financial Services (DFS) throughout the process that eventually resulted in the Chapter Amendment.

Mortgages currently receiving forbearance under the Governor's Executive Order 202.9, at the time of such forbearance, shall be considered as part of the requirement to provide forbearance under the new statute.

At the end of the 180 days of forbearance provided, the borrower has an option to extend the forbearance for a second 180 day period if still in financial distress, as provided in the Chapter Amendment. 

While we opposed the initiative, the Chapter Amendment is an improvement over the original legislation. If a bank determines that it unable to offer a mortgagor relief based on concerns regarding sufficient capital and liquidity, it must notify DFS within 5 business days of making the determination. The bank must also notify the mortgagor, who may file a complaint with DFS.

The Chapter Amendment clarified that forbearance applies to "monthly payments" due on the mortgage. It also prohibits the bank from charging additional interest or any late fees or penalties on the forborne payment. 

IBANYS intends to closely monitor developments, and invites community banks to please provide updates on how this new scenario impacts your banks. We are committed to continuing to work on this and related issues going forward. Read the Chapter Amendment at the link provided below:

Legislature Approves Eviction Moratorium

The Legislature also approved a statewide moratorium on evictions throughout the duration of the COVID-19 crisis, covering those who have been financially affected by the pandemic, although they will eventually have to pay the rent. The bill that passed would cover rent that has been due or accrued since March 7 until the date on which business restrictions and non-essential gathering bans have ended, or phase 4 of the reopening. Tenants would still be obligated to pay the rent they owe, but it would not affect their ability to remain in their home. (Some housing advocates had pushed unsuccessfully for legislation to cancel rent without back payments accruing.) The measure now goes to Governor Cuomo for his consideration.

  • The Legislature will reportedly reconvene next week to consider an array of criminal justice bills following the civil unrest occurring across New York State and throughout the nation after the death of George Floyd in Minneapolis, Minnesota ten days ago and murder and manslaughter charges filed against a police officer involved.
Washington Update

Please Contact Senators Schumer & Gillibrand, Urge Their Support For PPP Changes
The Chairman of ICBA has issued a "call to action" for community bankers throughout the nation, including in New York, to press our U.S. senators to request   much-needed reforms   to the Paycheck Protection Program. This means IBANYS needs you to contact Senators Schumer and Gillibrand using the process explained below:

Message From ICBA Chairman Noah Wilcox, current ICBA Chairman, urging all bankers to send a letter to their senators in support of PPP reform:
"Community bankers across the country have worked tirelessly to deliver PPP loans quickly and successfully on behalf of thousands of small businesses. The forgiveness rules and procedures outlined for small businesses and lenders are far too complex and onerous and will lead to further frustration for small business borrowers and the community bankers that serve them.
It is imperative that we encourage our bank directors, employees, and community banker colleagues statewide to call for the following PPP reforms:
  • Replace the rigid and unworkable “75/25 split” with a more flexible and realistic formula.
  • Provide more flexibility and options on the current eight-week period for spending PPP funds.
  • For all loans with an original balance of $1 million or less, allow a presumption of compliance based on a borrower’s certification that the funds were used in accordance with the terms of the program.
  • Require Treasury and the Small Business Administration to promptly provide a straightforward, easy-to-apply approach to loan forgiveness.
  • Provide a PPP loan forgiveness calculator to allow the borrower and lender to easily determine the forgiven amount.
  • Create a streamlined form, comparable to the 1040 EZ, for self-employed borrowers and independent contractors with few resources to complete a complex form.
  • Allow PPP borrowers that also obtain loan forgiveness to deduct payroll and other business expenses.

Additionally, ICBA offers a   customizable message   for small-business owners that community bankers can share with their customers to urge the Senate to act."

Plus, here is the latest SBA report with key data points detailing community banks' major participation in PPP for your use when writing to Senators Schumer and Gillibrand:


Please use ICBA’s   Be Heard grassroots action center   to reach your senators today!

Take Action: Urge FDIC To Change Brokered Deposit Proposal
ICBA is calling on community bankers to urge the FDIC to change its proposed regulations on what constitutes a brokered deposit. ICBA's  Be Heard grassroots action center  offers a custom letter that community bankers can use to tell the agency that its proposal is too broad and places undue limits on community banks.