April 29, 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
Hope everyone is safe and healthy. This has been an interesting time for the financial services industry, specifically community banks. Community banks have been the main resource to help small businesses in New York State and around the country. We are proud to partner with our community banks in the state. In a few weeks (or sooner), we are hopefully heading toward a safe reopening of the state.
Included in this newsletter:
  1. WSJ article on the success of community banks during this pandemic. Bob Fisher, President/CEO of Tioga State Bank, long time IBANYS director & former Chairman, current Vice Chairman of ICBA and strong advocate for community banks, is quoted in the article,
  2. Round 2 PPP data,
  3. Feedback, questions and comments on opening branch lobbies in the next few weeks Link to our Financial Education Webinar series…excellent material!!
"Most of the payroll loans funded by Tioga State Bank in round one went to existing customers" , said Bob Fisher, the bank’s president. (Note: Mr. Fisher is a former Chairman and longtime director of IBANYS, and is Vice Chairman of ICBA. ) About half of the loans so far in the second round have gone to first-timers. The bank’s $25.4 million in approved loans will allow companies in 20 New York counties to retain or rehire about 3,500 workers, Mr. Fisher said. That kind of money goes far in the region, the state’s only one to lose jobs between 2013 and 2018, according to the New York State Department of Labor. Local business owners have been calling the bank daily to check on their loan status. “There’s a lot of panic from customers making sure they get in,” said Mr. Fisher, whose great-great grandfather founded the bank’s predecessor. Click here to read full article published May 4 by the Wall Street Journal
Round Two Of PPP: Community Banks To The Rescue!
Round Two of the Paycheck Protection Program has been, overall, a rousing success for community banks as we continue to work hard to help our local small businesses and our communities.
. . .
Latest On Re-Opening The Economy -- And, Eventually Our Bank Lobbies
Governor Cuomo said that New York State continues to move toward a likely May 15 partial reopening of the economy on a regional basis, provided they can meet specific public health criteria. Upstate areas will open sooner than downstate, and the re-opening will be phased in by industries. Construction and manufacturing will open first, followed by professional services, retail, and real estate; then restaurants and hotels, followed eventually by businesses catering to the arts and to entertainment. 
Meanwhile, once we begin to reopen bank lobbies, what will the new normal look like?   The Financial Services Information Sharing and Analysis Center's (FS-ISAC's) Disaster Executive Brief and aggregate COVID-19 websites provide  a comprehensive list of resources to facilitate the return of "normal" operations:
Among the questions, concerns and thoughts banks should be considering: 
  • Installing protective shields for tellers and loan officers
  • Making PPE including gloves, masks and sanitizers available to employees and possibly customers
  • Where to acquire PPE and other in-demand items
  • Protecting employees with medical concerns that place them at high risk for contracting the virus
  • Special considerations for employees who live with family members whose occupations put them at higher risk
  • Policies for employees and customers wearing face covering masks in the bank
  • Social distancing procedures, including limiting access to lobbies on an ongoing basis
  •  When and how long to have employees work from home on an ongoing basis
  •  How to implement testing if it becomes available
  • Continuation of virtual staff and board meetings
  •  Permanently altering operating hours and drive-up only access
  • Taking temperatures of employees, and possibly customers, before entering the bank
  •  Ongoing travel restrictions for employees
  • How to notify customers if the bank is exposed to the virus
. . . .
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.
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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
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
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
On April 23, 2020, the Paycheck Protection Program and Health Care Enhancement Act (the "PPP Enhancement Act") was signed into law, which provides $310 billion in additional funding to the U.S. Small Business Administration’s ("SBA") Paycheck Protection Program (the "PPP") previously established by the CARES Act. As a result, the SBA has resumed processing PPP loan applications as of yesterday.

Our Alert provides an update on the PPP based upon the PPP Enhancement Act and the latest rules and guidance issued by the U.S. Department of the Treasury ("Treasury") and the SBA, including the SBA’s fourth interim final rule released on April 23, 2020 and Treasury’s Frequently Asked Questions Memorandum for the PPP, updated as of April 26, 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
Legislature's Session Plans Uncertain; Hearings Scheduled Scheduled On Pandemic, Economic Impact
State lawmakers will hold two public hearings in the coming weeks to assess the effects of the pandemic and the subsequent economic shutdown on small businesses, farms and minority communities, and the government's response to help them. The Legislature has not been in Albany since the passage of the state budget a month ago and plans to hold the hearings largely through video conference technology. Some legislators are seeking ways to get back to business in a stalled legislative session. Senate Majority Leader Stewart-Cousins and assembly Speaker Heastie have expressed a desire to restart the legislative session soon in some capacity.

State Budget Division Explains How New York Is "Staying Afloat"
The State Division of Budget's 463-page document outlining how New York State is staying afloat. It includes dire projections about the tax revenue decline across categories such as sales tax (nearly 20%), lottery (21%) and gaming (34%). The "Enacted Budget Financial Plan" notes the governor might slash aid to localities — including school districts, colleges, transportation systems and health care — by $8.2 billion as soon as mid-May. It predicts the state’s finances might hit a “trough” in June and begin a slow and grinding recovery: It may take until January 2023 to return to where the New York economy was in January 2020. It warns of steep spending cuts this year. State Budget Director Mujica stated: “Unlike the federal government, New York State must balance its budget and in the absence of federal assistance, we will have to make deep cuts which could impact a broad range of services.”
Washington Update
ICBA Meets With FDIC, Federal Reserve
ICBA leadership community bankers met remotely this week with FDIC Chairman Jelena McWilliams and Federal Reserve Governor Michelle “Miki” Bowman. The discussion focused on the federal and community bank response to the COVID-19 pandemic and other regulatory issues. ICBA Chairman Noah Wilcox, ICBA President and CEO Rebeca Romero Rainey, and ICBA staff also provided updates. ICBA's Federal Delegate Board is scheduled to meet this Friday for an additional strategic planning session.

The White House and Treasury reported that the Paycheck Protection Program is effectively providing a lifeline to America’s small businesses and their employees during the COVID-19 pandemic. 
  • Since the launch of the Paycheck Protection Program, SBA has processed over 3.8 million loans for more than half a trillion dollars of economic support in less than one month.
  • Nearly 500,000 of the PPP loans were made by lenders with less than $1 billion in assets and non-bank lenders.
The additional  $320 billion in funding  ensured a second round of PPP relief would be accessible for America’s small businesses. In the second round of the Paycheck Protection Program: 
  • 2.2 million loans have been processed, worth more than $175 billion
  • The average loan is $79,000, exhibiting that PPP is truly aiding the smallest of small businesses.