May 13, 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  
 
SBA Regional Administrator To Join Tomorrow's IBANYS Executive Management Call:
Is Your Bank You Signed Up?

IBANYS' Executive Management Discussion Group (week 2) will be held tomorrow, Thursday, May 14 – 10:30 – 11:30 a.m. via Zoom Video Conferencing. Please note, Steve Bulger, Regional Administrator, SBA will be joining our meeting.  If you are not registered to participate in the Executive Management Discussion, please contact Linda Gregware (lindag@ibanys.net. 518.436-4646) or click here for the registration form and details. If you have a question(s) you would like addressed, please email johnw@ibanys.net and the question(s) will be forwarded for response as we will have a limited amount of time with the SBA. Federal Home Loan Bank of New York will join next week's(May 21) video conference call. Mark your calendars!
. . . . .
 
In a recent interview with CBSI Services, I was asked to describe the ways community bankers have helped small business during the Covid-19 Crisis. Among the key points I focused on were: 
  • Small Business is what makes this world tick, they make communities thrive and do well, and community banks play a vital role in the process
  • During Covid-19 crisis, community banks have supported small businesses in their communities, both existing and new customers, with Payment Protection Program Loan application processing during both rounds as authorized in the CARES Act
  • In NYS State, approximately 265,000 PPP loans have been completed for $40 billion
  • The Small Business Administration, Treasury &  Administration have facilitated loan volume 25x annual lending in just two weeks. 
  • The Independent Bankers of New York State serve banks with $20 million to $12 Billion in assets, performs advocacy at state government to protect community banks from regulations intended for much larger banks
  • Noted the significant banking difference in rural upstate New York from downstate area.
  • Discussed how community banks have handled the "big disruption": Shifting some employee to work from home, changes to lobby and branch operations and hours, wearing protective masks, having teams in place, coping with compliance issues, and most importantly, helping local customers
  • Reopening is expected to be a slow process, as customers regain confidence to visit retail locations and restaurants
  •  Discussed movement toward becoming a cashless society, as customers are using mobile wallets, and the need for banks to have this technology.
 
. . . . .
 
 
Watch for our daily updates and check our website for previous updates. Since March 16, IBANYS has sent out daily (and often, more than once daily) updates to New York community banks with important developments and information on the impact that the pandemic is having on New York community banks. If you have missed any of these communications, or would like to refer back to them, each is included on our website. Click the link: https://ibanys.net/covid-19/
 
. . . .
 
During these challenging times, IBANYS is also working hard to bring you suggestions on other revenue and income generating programs, products and services. We have sent out information on some, and in today's newsletter (see below) we also discuss options we hope you will take the time to consider.

 
# # # # #
 
NOTE:
 
All IBANYS in person meetings have been POSTPONED.
 
IBANYS wants to ensure we have the correct contact information on file for all community banks. We need your help and ask that you please complete the attached fillable form and return it to Linda Gregware lindag@ibanys.net. Thank you. Bank update request
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:
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
Stakana Response to Mitigate Finaincial Impacts of COVID-19
As I have said in recent newsletters and updates, I am going to provide some thoughts and ideas on products /services to community banks. 

Todays intro is to Paul Marciante of Stankana which is a digital reporting and analytics company looking to support community banks. Attached is a letter from Paul providing information (and an offer) on Stankana and how they can help community banks as we move forward during the pandemic. Contact Paul Marciante at; paul@stankana.com

Mobile. 401.481.4229

TELEMEDICINE 24/7
Despite enormous challenges, New York community banks have done a tremendous job working with their customers through the PPP process. It’s an important program to keep the economy afloat until we can get back to work. In the meantime, many businesses will either layoff or furlough their employees during this time of uncertainty.  
 
In many cases, there will be no health insurance coverage extension for employees. The need for healthcare options is  CRITICAL,  and with many people facing temporary unemployment or income reductions…this could be a  HUGE  benefit to the bank employees and bank customers.
 
In this unprecedented time of uncertainty and economic turmoil for your banks’ customers, many have had their hours and benefits reduced or completely cut-off through being displaced. This creates hardships and add in the health concerns, this is a very difficult time to have reduced, more expensive or even no healthcare access.
 
Telemedicine, once a convenience, has quickly become a necessity. Telemedicine can connect a member with a doctor by using a phone, computer, or tablet from the comfort of their home, office, or anywhere. While there are several telemedicine services available, 24x7DoctorCall is the only telemedicine service that covers an entire family with U.S. based board-certified physicians and includes an excellent pharmacy benefit. 24x7DoctorCall i s not insurance,  so anyone can use it. 24x7DoctorCall can be used for over 80% of your typical Primary Care Physician (PCP) visit, and you can stay home while using it.
 
This is a low-cost healthcare option for families… only $14.99./month for up to 9 family members .
 
24x7 Doctor Call :
• Anyone can sign up through www.24x7doctorcall.com
• Unlimited Board Certified Physician telemedicine visits via a phone (Voice and Video)
• $0 Co-Pay
• Access is Anytime and Anywhere in the U.S.A.
• 80% discount on all generic medications
• The top 90% of our most commonly prescribed medicines are FREE.
• Includes up to 9 family members that share the same address.
• Month to month, no long-term contract
•  Only $14.99 per family per month (Paid online with a credit card)
 
This would NOT be a bank expense…simply a benefit offered to bank customers across the NY state and their families that may need additional healthcare options. No obligations—simply affordable care.

With the additional care, they can:
  • Add to existing coverage
  • Replace existing coverage
  • Add if they have no current coverage

Here is a link to an intro video:   https://youtu.be/Od9mlXEtV3c
IBANYS Preferred Partners & Associate Members
Additional COVID-19 Resources
COVID-19 Is a Differenct Kind of Crisis
COVID-19 Response Center

Freed Maxick, a Preferred Partner of IBANYS has a COVID-19 Response Center for banks and has provided for the following link for resources that banks may utilize during the pandemic.

Our bank leaders are faced with the immense task of planning for and managing safe branch lobby and office re-openings, all while pondering what the future may hold for branch banking after the pandemic. La Macchia Group has prepared 2 resources to help with both near and long-term decisions, giving you immediate ideas and solutions to consider in a succinct and visual  Branch Re-Opening Guide  and suggestions for strategic positioning and operational adaptations backed by consumer research in their  Thriving After COVID-19 Whitepaper
Last week, the U.S. Small Business Administration ("SBA") resumed processing loan applications through its Paycheck Protection Program (the "PPP") previously established by the CARES Act due to the additional $310 billion in PPP funding authorized by Congress.
 
Our Alert provides an update on the PPP based upon a Frequently Asked Question Memorandum, updated as of May 6, 2020, issued by the U.S. Department of the Treasury and the SBA.  Most significantly, it provides that: (1) the SBA will review individual PPP loans in excess of $2 million to further ensure PPP loans are limited to eligible borrowers in need; and (2) the PPP amnesty provision that would allow borrowers to repay their PPP loans in full without penalty upon a determination that their certification of "necessity" is no longer valid has been extended to May 14, 2020.

Our Alert is available  here .
Risk Rating Loans for Borrowers Impacted by COVID-19
In their Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus issued on March 22, 2020, the regulatory agencies made it clear they “…will not automatically adversely risk rate credits that are affected by COVID-19, including those considered TDRs.” Adverse risk ratings are Special Mention, Substandard, Doubtful, and Loss.  Consequently, just because you modified a loan for a borrower impacted by COVID-19, does not mean you have to rate those loans Special Mention or worse.
 
Albany Update
IBANYS Testifies Today At Virtual Joint NYS Legislative Hearing On Small Businesses & Pandemic  
IBANYS is scheduled to testify today at a virtual New York State Legislative Joint Public Hearing on the federal response to the economic impact on COVID-19 pandemic on small businesses in New York State. IBANYS will be represented at the hearing by Anders Tomson, President & CEO, Chemung Canal Trust Company and a member of the IBANYS board of directors. The hearing is the first official legislative event since the passing the budget nearly six weeks ago.

Legislature Waiting To See If Federal Dollars Are Coming Before Addressing Budget
There are more than 300 COVID-related bills waiting to be voted on by the state legislature Assembly Speaker Heastie said the legislature will likely not reconvene in earnest until it’s known if the next federal stimulus package includes direct aid to New York State. “We’re looking at the bills, but again, it’s very, very dependent on what the federal government is going to do for us.” Regarding the dependency on federal aid: Estimates indicate the state has a budget gap of somewhere between $8 and $15 billion. If federal money doesn’t materialize, there will be what Speaker Heastie calls, “cuts to the bone.”  Even with federal aid, tax hikes are looking increasingly likely. Governor Cuomo has repeatedly stated that raising taxes is not on his agenda, but may be re-accessing. When asked recently if he would raise taxes on the wealthy, the Governor said simply, “I don’t know.” This past Friday, Budget Director Mujica said he did not think there was an appetite for a dramatic increase in taxes on the wealthy. That is not the same thing as believing there is no appetite for a tax increase at all. 
Washington Update
House Democrats Unveil $3 Trillion "Phase Four" Plan
House Speaker Nancy Pelosi (D-Calif.) and House Democrats released a $3 trillion economic stimulus package proposal, despite pushback from President Trump and Senate Republicans who say there hasn't been enough time to see the impact of the $2 trillion CARES Act. The bill includes $875 billion in aid for state and local governments, a sticking point between Democratic and Republican lawmakers.  Note:  This is a messaging bill for House Democrats, intended to help them lay their marker for the policies in which they believe. This will not become law.  Among its many proposed provisions, it includes: 
  • $500 BILLION for state governments
  • $375 BILLION for local governments
  • $75 BILLION in housing assistance for “states, territories, and tribes to address the ongoing needs of homeowners struggling to afford their housing due directly or indirectly to the impacts of the pandemic by providing direct assistance with mortgage payments, property taxes, property insurance, utilities, and other housing related costs.”
  • $10 BILLION for small businesses.

Meanwhile, Senate Majority Leader McConnell reiterated he will insist on liability protection  for employers in the post-coronavirus world. “Strong legal protections are the right move for doctors, nurses, hospitals, schools, universities, for workers who want their jobs back, for small business owners who are struggling to stay open, for nonprofits that have helped the vulnerable and for taxpayers who want their money to finance a real national rescue, and not the biggest trial lawyer bonanza in American history. Senate Republicans are going to continue to develop this legislation. It’s going to be a red line for us in any future coronavirus legislation. The administration has already stated its support for action on this issue as well.

White House Update
IBANYS received the following from the White House, which contains a comprehensive collection of information and links for your review.

Update on Administration COVID-19 Efforts 05/12/2020
President Trump is working to ensure underserved communities across America have the resources necessary to fight the virus. To provide health and economic support, President Trump has delivered: 
  • $2 billion for community health centers to provide care and testing for their 28 million patients
  • $60 billion in loans under the Paycheck Protection Program targeted to support minority and disadvantaged communities
  • $1 billion to Historically Black Colleges and Universities, Hispanic serving institutions, and other minority serving institutions impacted by the coronavirus

Click the button below to view the complete document.