May 20, 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 safe and healthy. During the difficult times we are enduring together this Memorial Day Holiday, it's important to pause and reflect upon the sacrifices made by so many Americans to keep us free and protect our liberty. We are proud to honor their service and memory -- a poignant reminder of courage and commitment as we work toward a safe and responsible reopening from the pandemic.

New York community banks continue to do tremendous work supporting their local communities and small businesses during the pandemic -- as they do every day, year round. The recent reports from the Small Business Administration (SBA) regarding the Paycheck Protection Program (PPP) reflect that support: SBA PPP Report as of loans as of 5/16/2020 - published 05/18/2020 -- see link below:


New York continues to grapple with the pandemic and its economic consequences as we move toward a regionalized, targeted reopening. While NYS is beginning to open up, we, as community banks and small business leaders, need to work together on what is the ‘new normal.’ This includes looking at your 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. In this newsletter, you will find information on companies that will provide guidance to our banks on Digital Reporting, Artificial Intelligence, PPP guidance and support, balance sheet strategies, etc.
 
Please contact IBANYS if you have any specific questions about the companies in the newsletter.
. . .

Meanwhile, IBANYS continues to provide information on the latest from Washington, D.C. and New York State through our daily updates, discussions and conference calls with key officials, and input from a wide array of experts. We have held calls with senior members of Congress, the Chairman of the State Senate Banks Committee, and scheduled "Executive Management Discussion" calls with senior representatives from the Small Business Administration, Federal Home Loan Bank of New York (tomorrow, May 21) and the OCC (Thursday, May 28). Contact Linda Gregware (Lindag@ibanys.net to participate.)

With Congress focused on the next stage of federal funding ("Phase Four") and perhaps making changes to the PPP -- and the State Legislature and Governor dealing with the financial hole the state faces and a rash of COVID-19 bills that may include initiatives on rent and/or mortgage forgiveness -- the coming weeks will be filled with challenges.

IBANYS will continue to monitor these and other relevant developments, keep you fully informed -- and continue to represent the interests of New York community banks.

-- John

PLEASE NOTE:  
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 .
 
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

IBANYS Preferred Partners & Associate Members
Additional COVID-19 Resources
Can a fintech partner speed up your PPP loan forgiveness processing?

Join ICBA, the Alliance for Innovative Regulation, and The Venture Center for a virtual brown bag event showcasing cutting-edge technologies addressing requirements for reporting, managing, and servicing Paycheck Protection Program loans.   This event will take place Thursday, May 21 st  from 12-2 p.m. EDT.

A showcase of 12 fintech participants will demo their product offerings and take questions from a panel community bank leaders.
2020 Community Bank Webinar Series
Mortgage Market Update & Opportunities - June 2, 2020 - 10:00 a.m. CDT

ICBA Securities and its exclusively-endorsed broker, Vining Sparks, will present a webinar on Mortgage Market Update and Opportunities exclusively for the state associations that endorse ICBA Securities, as well as other community banks. This is the sixth in the 2020 webinar series. 
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.”

Fixing Future Earnings Problems, TODAY.
EXCLUSIVE INVITE ONLY WEBINAR!
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 
15 Items That Will Trip Borrowers Up in the New PPP Forgiveness Application

Last Friday night, the SBA released the long-awaited Paycheck Protection Program (PPP) application, and while it clarified some aspects of the program, its complexity also surprised many bankers. In the SBA’s defense, it is hard to strike the right balance of speed to market, simplicity, and breadth of idea inclusion, so overall, we must give the SBA high marks for this effort. Despite those marks, we have identified 15 areas where banks will need to focus on providing further education, process, or...

CRE Loan Delinquency Data

While it is too soon to get the data on bank commercial real estate (CRE) portfolio delinquencies and forbearances, we take our benchmarks from the commercial mortgage-backed securities market as of May 14th. As any commercial banker can tell you, hospitality and retail remain under the most pressure, jumping up more than 5x and 3x, respectively.  Office delinquencies are up 71%, month-over-month, industrial properties remain relatively unchanged while Other (self-storage, specialty, etc.) is up 3.5x...

Effectiveness of the Paycheck Protection Program (PPP): Phases 1+2
Due to the crucial role of small businesses in the US economy, it is important to evaluate the effectiveness of the PPP program. As some states have been hit harder than others from COVID-19 – such as NY, NJ, MI and PA – the effectiveness of the program will have a bearing on the recovery of those states. We evaluate the effectiveness of the two phases of PPP along the following questions. Are there any differences across states in how the funds of PPP have been distributed? Have the states with higher concentration of small businesses or financial institutions received more funds? Have the states hit with higher unemployment receive a bigger portion of the fund?The article is available here:
Covid-19 comeback: Sampling of financial executives plus views of two Georgia bankers suggests a 'return to normal' will be anything but.

Albany Update
Legislature In Session Next Week -- Will Focus On COVID-19 Bills
The NYS Senate  will reportedly be back in session next Tuesday and Wednesday. It remains to be seen whether the Assembly will do the same, but a two-way deal appears to be in the works on a dozen bills intended to mitigate the effects of COVID-19. Most legislators would be able to work remotely. The legislative agenda could include bills to help renters stay in their homes, streamline the process of absentee voting, change unemployment eligibility and give frontline workers some hazard pay.

IBANYS' Director Anders Tomson (Chemung Canal) Testified On Community Banks' Support Of PPP, Small Businesses During Pandemic  
IBANYS board member Anders Tomspn (President & CEO, Chemung Canal Trust) testified at last week's 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. He provided strong commentary on the role New York community banks have played throughout the pandemic, and in particular the vital part they played in the SBA's Paycheck Protection Program (PPP). Read the full testimony .

Washington Update
Senate Banking Hearing Hears from Mnuchin, Powell
Treasury Secretary Mnuchin and Federal Reserve Chairman Powell testified remotely before the U.S. Senate Banking Committee Tuesday, the first of their required updates to Congress on the $500 billion fund set aside in the CARES Act. Both think the worst could be yet to come for America's economy.

  • Powell reiterated his belief a full recovery may not come until there's a vaccine
  • Mnuchin said there's the risk of "permanent damage" if states delay reopening. 

The Committee asked whether the economic programs were enough to support businesses or localities in need. 

  • Powell said the Fed would continue to adjust the terms, and possibly the eligibility, of its lending programs as “we learn more.” 
  • Mnuchin said Treasury was “fully prepared to take losses” on the money it is extending to backstop the Fed’s lending programs. (Many of the Fed's coronavirus lending programs have yet to launch; 
  • Powell expects all to be up and running by the first week of June.) 

Asked if Congress has done enough, Powell said:   “This is the biggest shock we’ve seen in living memory," that Congress needs to be ready to act further if needed. Mnuchin was pressed on the eight-week period that businesses are required to spend Paycheck Protection Program funds. Small businesses want it extended, but that fix would need to come from Congressional legislation, not the Treasury Department.  

It does not currently appear that a new coronavirus bill is close. The House is out this week, the Senate is out next week, which brings us to early June. There is still reticence among some Republicans: House GOP Leader McCarthy, commenting about the need for a new bill, stated: “I don’t see the need right now.
. . .

President Trump signed an Executive Order   that will help slash red tape in order to revitalize the economy and get Americans back to work .
  • He is directing agencies to use all emergency authorities to swiftly identify regulations that can be rescinded or temporarily waived to promote job creation and economic growth. Agencies have used these emergency authorities to fight coronavirus, and now will use them to jumpstart the economy.
  • The President’s order asks agencies to speed up the rulemaking process by moving proposed rulemakings to interim final rules with immediate effect.
  • The President also directed agencies not to over-enforce when a business is working in good faith to follow the law, as small businesses continue fighting to recover from the impact of the pandemic.
  • The order also establishes a “Regulatory Bill of Rights,” a set of 10 basic principles of fairness to govern the administrative enforcement and adjudication process. These principles will help give businesses the confidence they need to invest and grow as we recover as a nation."

. . .

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.