IBANYS News and Updates

With the February recess now over, the State Legislature will heighten its focus on the 2020-21 state budget process in advance of the April 1 deadline. The Governor has released his 30-day amendments last week, which included no obvious significant changes to the provisions related to banking. The Senate and Assembly will pass their respective one-house budget bills in response to the Governor's proposal, then the annual "three people in a room" negotiating will begin featuring the Speaker of the Assembly, the Senate Majority Leader and the Governor. IBANYS will continue monitoring the process as it impacts community banks. In Washington, there is news about credit unions, including an important webinar on March 3 and the ongoing battle against credit unions' purchasing community banks. We go into the aforementioned indetail in our newsletter below.

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The FDIC released its latest Quarterly Banking Profile , reporting that community bank net income rose 4.4% in the fourth quarter from one year ago. Community banks reported quarterly net income of $6.4 billion, and more than half of community banks reporting growth. Net interest income increased by 2.1% year-over-year because of strong annual loan growth (up 5.5%). Community banks’ noncurrent loan rate fell to the lowest point since the fourth quarter of 2006. Overall, the banking industry:
  • Reported a 6.9% fourth-quarter decline in net income from a year ago, largely due to lower net interest income and higher expenses.
  • Annual net income declined by 1.5 %, to $233.1 billion.
  • The Deposit Insurance Fund balance rose $1.4 billion from the previous quarter to $110.3 billion, and the reserve ratio was unchanged at 1.41 percent.
  • The number of banks on the “Problem Bank List” fell from 55 to 51 during the fourth quarter.
  • Three new banks opened.
  • 77 banks were absorbed by mergers and
  • Three banks failed.

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For your information, CEIS Review, Inc. has published The CEIS Quarterly Newsletter for the first quarter of 2020. It discusses the findings of the most recently completed Shared National Credit programs. Click here to read the entire newsletter.

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IBANYS' 2020 educational programmng is about to hit full stride. We hold our second and third regional regulatory compliance conferences next week March 3 in Rochester and March 4 in Poughkeepsie, after holding an earlied one in New York City. Now, we're putting final touches on our Regional Directors Conferences set for April 7, 8 and 16 in Rochester, Poughkeepsie and New York City.

We'll head down to Washington, D.C, at the end of April, leading a contingent of New York community bankers to ICBA's Capital Summit and for meetings "on the hill" with members of our New York Congressional Delegation. We hope to see you at each of these important events. More details are provided below.

IBANYS 2020 Meetings  -  click the meeting to download brochure and to register

March 3 - Rochester — March 4 - Poughkeepsie - registration is open

April 7 - Rochester — April 8 - Poughkeepsie - registration is open

 Security Conference
May 5 - Rochester — May 6 - Poughkeepsie - brochure & registration info coming soon

IBANYS 46th Annual Convention
June 15-17, 2020 - Turning Stone Resort & Casino, Verona, NY
(details and registration information coming soon)