June 24, 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 New York continues to open and much of the state prepares to enter the next phase, New York community bankers have begun reopening their lobbies and branches with safeguards in place to keep their staff and clients safe and healthy as we adjust to the “new normal”.
IBANYS will continue to gather and provide banks information on reopening strategies and updates from the regulatory agencies and other resources.
This week’s newsletter provides information on the primary results, an interview with Bob Fisher, President & CEO, Tioga Bank by #cbsiTalkingBusiness e-magazine , updates from Albany and Washington DC, and so much more.

If you have information you would like to share or have a comment about the newsletter, please email me at johnw@ibanys.net .
Former IBANYS Chairman and board member and current ICBA Vice Chairman Bob Fisher (Tioga State Bank) -- a 5th generation community banker -- was recently interviewed on #cbsiTalkingBusiness e-magazine . We are pleased to provide the link to the interview below:

Primary Results 
Yesterday, New York State held primaries, including choosing candidates for congressional seats. While returns are not yet finalized (there are a number of mail-in and absentee votes to be counted), these are some of the preliminary results:
  • In the 12th (Manhattan/Brooklyn/Queens), 28-year-incumbent Democrat Carolyn Maloney (a key member of the House Financial Services Committee) was clinging to a narrow 500+vote lead over primary challenger challenger Suraj Patel;
  • In the 15th (Bronx/Westchester), progressive insurgent Jammal Bowman held a large primary lead over 32-year incumbent Democrat Eliot Engel, chair of the House Foreign Relations Committee;
  • In the 16th (Bronx), progressive insurgent Richie Torres, a NYC Council member, is leading the Democratic primary for the seat being vacated by retiring 30-year-incumbent Democrat Jose Serrano;
  • In the 17th (Westchester), progressive Mondaire Jones has a large lead in the primary contest to replace retiring 32-year-incumbent Democrat Nita Lowey, who chairs the House Appropriations Committee.
All four districts are heavily favored to remain Democratic.
  • In Long Island's 2nd district, the seat being vacated by retiring Peter King, the Republican primary was apparently won by GOP Assemblyman Andrew Garbarino, and the Democratic primary by combat veteran and educator Jackie Gordon.
  • In the 27th district in Western New York, the seat vacated by Chris Collins, both a special election to fill the seat through the end of 2020 and a Republican primary were held. GOP Assemblyman Chris Jacobs has a decisive lead in both but Democrat Nate McMurray has not conceded in the special election due to a large number of absentee ballots still to be counted.
At this time, it appears there will be at least four new members of the New York Congressional Delegation: The seats currently held by the retiring Republican Peter King and Democrat Nita Lowey; the seat vacated by the resigned Republican Chris Collins, and the apparent loss by incumbent Eliot Engel. Time will tell whether there could be an even larger turnover. The Maloney-Patel race remains extremely close, and there may be close races in November in the 22nd district between incumbent Democrat Andrew Brindisi and former GOP Rep. Claudia Tenney, and in the 24th between incumbent Republican John Katko and Democrat Dana Balter.
After November, it is possible the New York delegation will have undergone a turnover of approximately half its 27 members since 2016. IBANYS and New York community banks will have a full plate in January, 2021 as we will move aggressively to introduce our association and industry to new members of the delegation.
Federal and state regulators have issued guidance to promote consistency and flexibility in supervising and examining financial institutions affected by the COVID-19 pandemic. The interagency guidance instructs examiners to "consider the unique, evolving, and potentially long-term nature of the issues confronting institutions due to the COVID-19 pandemic and to exercise appropriate flexibility." Read here

Community Banks Remain On Top On PPP
  • Lenders under $10 billion in assets have made some 2.35 million Paycheck Protection Program loans worth more than $226 billion through both rounds of funding, the SBA reported.
  • According to an SBA summary of loan approvals through June 20, lenders from $10 billion to $50 billion in assets made more than 720,000 loans worth more than $100 billion.
  • Combined, the two asset classes account for nearly 66 percent of approved loans and more than 63 percent of the approved dollar amount.


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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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.)
Additional Products and Services
Barret School Of Banking Offers New "Crisis Leadership" Program
In light of the growing pandemic in the spring, the Barret Board canceled the May 2020 Graduate School, and instead created a new "Crisis Leadership" program" as a way for to serve the industry during this time of need.
  • If your bank has a current Grad student or alum, you can have access to the Crisis Leadership program for just $95/bank– as long as your bank is a member of the Alumni Roundtable:  https://barret.ws/mainstreet/roundtable/
  • If your bank does not have a current student or alum, your bank can have total access for $595/bank (if IBANYS member), or $895/bank (not an IBANYS member).
Here is a link that can give your more info on the program:
Password: BarretBank

Key Facts:
1). Total Hours: 25 (self-paced, recorded content)      
  • The expectation is it may take a few weeks to complete (depending on your schedules)      
  • A certificate will be awarded once all courses are complete
2). Proposed Launch Date: End of June
3). Learning Platform: Recorded Webinars
4). Facilitators/Course Topics:      
  • Trish Springfield/Energize2Grow - Building a Leadership Culture      
  • Brad Federman/PerformancePointLLC - Emotional Intelligence/Resilience  
  • Jim Reber/ICBA Securities & Marty Mosby/Vining Sparks- Balance Sheet/ALM Management Strategies  
  • Lee Anne Fryland/South State Bank - Leading Your Team      
  • Jimmy Sawyers/Sawyers & Jacobs - Tech Strategies/Working Remotely    
  • Ben Pankonin/Social Assurance - Messaging/Telling the Bank & Community Story       
  • Chip Higgins/Bizzics - Messaging/Personal Branding Strategies

There are also relevant podcasts, reference material, and links to pertinent information included in the overall program. For additional information, contact Chris Kelley, President/Executive Director, Barret School of Banking: 901-321-4000 (office); 901-270-3303 (cell); ckelley@barret.ws
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.
100% non-hazardous solution. EPA Approved.
Kills 100% of pathogens & microorganisms including, but not limited to... COVID-19, H1N1, SARS.
Works on ALL surfaces including flooring, window treatments, fabrics, carpets, furniture, wood, metal, plastic, etc....
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
ICBA and The American College of Financial Services are offering a new  “20 in 2020” scholarship  for veterans and their families seeking careers as community bankers.
Recipients will receive full scholarships to complete coursework and earn The American College Wealth Management Certified Professional designation. The year-long coursework includes instruction in goal identification, risk management, and investment management plans. Applications are due July 31, and winners will be notified by Sept. 1. 
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.

Albany Update
Clarification On Residential Mortgage Forbearance Statute
There has been confusion among counsel for several banks about the residential mortgage forbearance statute. We  have had a number of inquiries, and want banks have a thorough understanding of the current law and how to correctly implement any and all changes needed for their customers. 

As an attempt to provide clarification: 
  • Attached please find Chapter 112 of the Laws of 2020 -- the original bill and chapter signed by the Governor. Chapter 112 of the Laws of 2020
  • There was, however, a subsequent chapter amendment agreed to between the Governor and the Legislature, which amended Chapter112 that is Chapter 126 of the Laws of 2020. A copy of this statute is also included in the link above. Part C of Chapter 126 is the changes made to the previous Chapter 112, and is the current law. Both bills were signed on June 17, 2020 but obviously Chapter 126 was signed later. 
  • IBANYS worked with DFS and the Governor’s office to obtain the changes reflected in Chapter 126. 
  • IBANYS reached out to DFS to ask the Department to provide more details and clarity to help New York community banks better understand the law so they can follow the rules. DFS agreed to coordinate with IBANYS, and will put together a "Frequently Asked Questions (FAQ)" document.

If there are any questions, please don’t hesitate to contact us.

Waiting For Phase Four: New York State Withholds Millions In Local Aid
New York State is withholding millions of dollars in local government aid as the state government awaits federal pandemic relief -- a move that is complicating budget making for cities across the state. The numbers are massive: $20 million for Buffalo, $17 million for Rochester, more than a $11 million for Syracuse. The New York Conference of Mayors  first highlighted  the withheld aid, calling it "disturbing news." All told, a dozen city governments had 20 percent lopped off from their state aid, which Gov. Andrew Cuomo's budget office said is being withheld as it awaits clarity from the federal government on the next aid package.  https://nystateofpolitics.com/state-of-politics/new-york/ny-state-of-politics/2020/06/24/local-government-aid-withheld-
Eviction Moratorium Expires
A moratorium on evictions that New York state imposed during the coronavirus pandemic expired over the weekend, raising fears that tens of thousands of struggling residents will be called into housing courts, which reopened on Monday,  The New York Times reports.
Legislators Want To Curb Governor’s Emergency Powers
With the coronavirus rate of infection down to around 1 percent, regions across the state opening back up and Governor Cuomo's daily press briefings at an end, many state legislators are saying it is now time to restore checks to the governor's powers. The Legislature granted Cuomo widespread emergency powers back in March -- when the coronavirus was starting to spread rapidly in the state -- recognizing the Governor would need to make split-second decisions in a quickly evolving situation. During this time, the governor has changed well over 250 laws issued over 30 executive orders.
DFS Guidance On Credit Reporting
State DFS Superintendent Lacewell announced guidance to NYS regulated financial institutions intended to assure accurate credit reporting for consumers who have been impacted by the COVID-19 virus. DFS urged institutions to use procedures established by credit reporting agencies to allow the institutions to report missed or delinquent payments in a manner that will mitigate against the impact on consumers’ credit histories and credit scores. The Department also seeks to assure compliance with credit reporting obligations under the CARES Act, and urged a review of credit reporting during the pandemic to verify compliance with the CARES Act, and requires swift investigation and possible correction of any inaccurate information in instances where consumers dispute the completeness or accuracy of information in a credit report. 
Washington Update
Fed, FDIC, OCC List D istressed Or Underserved Nonmetropolitan Middle-Income Geographies
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency announced the availability of the 2020 list of distressed or underserved nonmetropolitan middle-income geographies. These are geographic areas where revitalization or stabilization activities are eligible to receive Community Reinvestment Act (CRA) consideration under the community development definition. These geographies are designated by the agencies in accordance with their CRA regulations. The criteria for designating these areas are available on the Federal Financial Institutions Examination Council (FFIEC) website: http://www.ffiec.gov/cra . The designations continue to reflect local economic conditions, including unemployment, poverty, and population changes. The agencies apply a one-year lag period for geographies that were listed in 2019, but are no longer designated as distressed or underserved in the current release. Revitalization or stabilization activities in these geographies are eligible to receive CRA consideration under the community development definition for 12 months after publication of the current list. The current and previous years’ lists can be found on the  FFIEC website , along with information about the data sources used to generate those lists.
What's Next For Federal Stimulus Legislation?
Treasury Secretary Mnuchin indicated the Trump administration is "very seriously considering" another stimulus package, that there have been discussions with lawmakers it and that he believes it could get congressional approval in July. Mnuchin said he expects the U.S. economy will be out of a recession by the end of the year, and noted while the federal government could consider pushing back the deadline for 2019 tax returns again to Sept. 15, it does not expect to do so.
FDIC: PPP Participation Won't Result In Higher Deposit Insurance Assessments
The FDIC  approved a final rule  to ensure banks will not be subject to significantly higher deposit insurance assessments for participating in the Paycheck Protection Program, PPP Liquidity Facility, and Money Market Mutual Fund Liquidity Facility. The final rule generally removes PPP loans from the assessment rate and provides an offset for increases in the assessment base attributable to participation in these programs. The final rule will take effect immediately with an application date of April 1, 2020, and changes will apply to assessments starting in the second quarter of 2020.
  • Meanwhile, the OCC approved an interim final rule that will reduce assessments due to the OCC on Sept. 30, 2020, because of the COVID-19 emergency. Under the rule, assessments will be based on Dec. 31, 2019, call reports, which will result in lower assessments for most OCC-supervised banks. If a bank’s assets as reported on the June 30, 2020, call report are lower, the OCC will base its assessment on that data.
The FDIC's board of directors  meet tomorrow will include discussions of:
  • a re-proposal on Volcker Rule covered fund provisions
  • a final rule on swap margins, and
  • a final rule on federal interest rate authority.
ICBA Urges Community Banks To Comment On Two Proposed Credit Union Rules
Through Its "Be Heard" Grassroots Action Center Be Heard grassroots action center
ICBA is urging community banks to submit comments to the NCUA on two recent proposed rules:
  • Subordinated debt. The NCUA has proposed to allow large credit unions to issue subordinated debt, which would fuel rapid growth and consolidation in an industry that is already growing too quickly. View ICBA's sample comment letter
  • Credit union-bank acquisitions. The NCUA has proposed a new rule on credit union acquisitions of other financial institutions. As you know, these acquisitions have become more frequent and are rapidly transforming the financial services market. They threaten to undermine the tax base in your states, which, following the economic shutdown, are more desperate than ever for revenues. The NCUA proposal would create more transparency and is a step in the right direction. Our objection is that it does not go far enough. We must not miss an opportunity to meaningfully regulate and curb acquisitions which abuse the credit union tax subsidy. View ICBA's sample comment letter
The action center provides suggested language, but community banks are urged to customize your comments for greater impact. It is critical that community banks make a strong grassroots showing, in quantity and quality of letters, to influence the rules and set down a marker against further credit union powers expansion.