Hope the warm weather is finally here.. for good. 

The newsletter has many important items regarding upcoming IBANYS events:

• QUARTERLY HARTMAN ROUNDTABLE - June 6th

• IBANYS ANNUAL CONVENTION - Celebrating 50 years as an association supporting community banks July 15-17

**There are just a few sponsorships and exhibit booths available 

** We could use some more help with items for the IBANYS PAC auction. (please see brochure for more details)

• The FDIC will hold four seminars for bank officers and employees on its final rule governing the usage of official FDIC signs, advertising, name, logo, and more, with the first one scheduled for Thursday, May 30 at 2 p.m. (Eastern) on Microsoft Teams. (The dates for the remaining three 90-minute seminars will be announced later.) These seminars will offer a broad overview of the final rule amending Part 328 of the FDIC’s regs governing use of the official FDIC sign and advertisement statements to reflect how depositors do business with banks today, including through digital and mobile channels. The rule took effect April 1 and has a compliance date of Jan. 1, 2025.

More details for the events are included in newsletter below.

We look forward to seeing everyone at the 50th Annual Celebration of IBANYS in July!

John

IBANYS MEETINGS

IBANYS ANNUAL CONVENTION

July 15-17, 2024 – Turning Stone Resort & Casino

This year holds a special significance for us — it marks IBANYS’ 50th anniversary! Click here to read the meeting brochure and to register today. There are still booths and sponsorship opportunities available . . .and, don’t forget our Silent Auction on Tuesday evening, July 16. Please consider donating an item and let’s make it the best one yet. We're planning not just a gathering, but a celebration -- of our journey, achievements, and the countless individuals who have contributed to our success over the years. Since 1974, we've represented and advocated for all New York’s community banks and worked to make a meaningful impact in the communities they serve. Our 50th anniversary reflects more than longevity – it reflects the dedication of our member banks, and the importance of community banks to our state and local economies and social fabric. We can't wait to celebrate this milestone with our member banks, our valued partners, clients, and stakeholders. Together, let's make this year's convention a truly unforgettable experience as we honor our past, celebrate our present, and embrace our future.

Click here for brochure

Sponsors to date

• BHG Financial
• COCC
• Federal Home Loan Bank of NY
• Gensis PPG
• Heilbronner Consulting
• ICBA
• InfoAgora
• NBS Group
• NEACH
• Plante Moran
• Piper Sandler
• Roosevelt & Cross
• Shield Compliance
• Sunweath
• The Long Group
• Wolf & Company 

Exhibitors to date

• Booth 1 – Pioneer 360
• Booth 2 – BHG Financial
• Booth 3 – DataSure 24
• Booth 4 – NES Group
• Booth 5 – Shield Compliance
• Booth 6 – La Macchia Group
• Booth 8 – Lee & Mason
• Booth 15 – Genesis PPG
• Booth 16 – Acture Solutions
• Booth 17 – Dox Electronics, Inc.
• Booth 18 – Neach
• Booth 19 – Office of the Comptroller of the Currency
• Booth 20 – Ncontracts
• Booth 21 – Magee Company
• Booth 22 – PW Campbell
• Booth 25 – Federal Home Loan Bank of NY
• Booth 26 – IntraFi
• Booth 27 – StrategyCorps
• Booth 28 – Wolf & Company
• Booth 29 – InfoAgora
• Booth 30 – The Long Group

Meet the Convention Speakers

Registration is now open for Stifel’s Virtual Bond School, where our product specialists will review all of the investment products that comprise a robust portfolio. In addition to bond basics, they will explore how to incorporate these products into an investment strategy that meets an institution’s goals and objectives.

As part of Stifel Fixed Income’s value-added suite of services, the courses are at no cost and continued professional education (CPE) credits are available. For your reference, the agenda is listed below. If you have any questions or would like additional information, please contact your Stifel representative or email FixedIncomeEvents@stifel.com.



Field of Study: Finance

As part of Stifel Fixed Income’s ongoing commitment to Continuing Professional Education (CPE), all attendees can earn CPE credit(s) for participating in these group internet-based sessions, which require no prerequisites or advanced preparation. Please note that each attendee must be registered individually, log in with their user-specific registration, and be logged on for a minimum period of time in each session to receive CPE credit.

Stifel Fixed Income is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org   

This is for institutional use only. Stifel, Nicolaus & Company, Incorporated, is a broker-dealer registered with the United States Securities and Exchange Commission and a member of FINRA, NYSE and SIPC. This information has been prepared for general information purposes only and does not consider investment objectives, financial situation or particular needs of any specific institution. Institutional investors should seek financial advice as to the appropriateness of investing in any security or investment strategy mentioned or recommended. This information is not and should not be construed as a solicitation to buy or sell any security or securities.

ALBANY UPDATE

LEGISLATIVE UPDATE

• Here are the most recent legislative reports from Albany regarding the latest bill introductions, legislative activity and committee agendas your review. These reports are posted weekly on our website (ibanys.net) under the “Advocacy/Legislative Updates” tabs.

• The Public/State Bank issue keeps on coming! Here is a proposed bill (A.10134) for the "Bank of Rochester" from the state Assembly. Obviously we are opposing this bill which does not have a "same as" bill (yet) from the senate. Please read thru the bill and provide feedback and comments. Senator Sanders held his monthly bank meeting call this week, and this topic was on the table for discussion. More to come…

• Last week, IBANYS testified at a State Senate Banks Committee hearing held by Chairman Sanders (D-Queens) on the “Inequalities in the New York Mortgage Banking Industry.” Here’s a copy of my written testimony. IBANYS had previously testified and participated in roundtable discussions to propose alternative ways community banks can help meet the needs of unbanked, underbanked and minority communities in our state by using existing vehicles such as MDIs, BDDs, the Community Bank Deposit Program and more instead of creating state/public banks. Our New York community banks do everything they can to support their communities with all banking products, including personal and business mortgages. IBANYS will continue to support those efforts, and provide solutions for the state to assist in building generational wealth in the underserved and underbanked communities.

• Winding Down. The NYS Legislature has 12 more session days left until the scheduled June 6 adjournment of the 2024 session, when members head home to seek reelection. Legislators will try to put the finishing touches on a range of measures that didn’t make the final budget deal last month, including some “big ticket” issues. Here’s a look at what’s being considered and what stands a chance to pass: https://www.politico.com/newsletters/new-york-playbook/2024/05/10/end-of-session-odds-00157254?nname=new-york-playbook&nid=0000014f-1646-d88f-a1cf-5f46b74f0000&nrid=00000152-f737-dcf0-a7d7-f73fb7700001&nlid=630317. Meanwhile, Gov. Hochul expects a sleepy finish to this session. Here are the major bills.

• Still Disagreeing. The Governor and legislators disagree about expanding paid medical leave benefits. Spectrum News

POLITICAL & ECONOMIC ITEMS

• Recent Layoffs: Meaning For NY Economy? The Tesla plant in Western New York is laying off more than 300 workers, and other companies in the state are doing similar things according to the NYS Department of Labor WARN Notice database. Nine WARN notices were filed this month alone, indicating more than 600 jobs lost. Read more.

• State Budget Offers Political Cover? Gov. Hochul’s enacted state budget could offer vulnerable Democratic congressional incumbents and candidates a defense against the types of GOP attacks that helped defeat the party’s candidates two years ago. Meanwhile, Assembly Speaker Carl Heastie is boosting incumbents facing far-left challengers by visiting their districts for funding announcements. City & State.

• Retiring Early?! The growth of the population in the U.S. age 65 and older is unprecedented, and the number of Americans age 65 and older is projected to increase from 58 million in 2022 to 82 million by 2050, a 47% increase; the 65-and-older age group’s share of the total population is projected to rise from 17% to 23%. https://www.prb.org/resources/fact-sheet-aging-in-the-united-states/#:~:text=The%20U.S%20population%20is%20older,the%20top%20of%20the%20list. Only 46% of workers under the age of 62 plan to work beyond that age. That percentage has been declining for years but has plummeted since the pandemic. New York Fed researchers found since March of 2020, the number of years Americans who expect to continue working has fallen by 9.5%. https://libertystreeteconomics.newyorkfed.org/2024/05/the-post-pandemic-shift-in-retirement-expectations-in-the-u-s/

• Upstate's "Hot" Real Estate Spots. Multiple locations in Upstate New York were among the hottest real estate markets in the U.S. in April, and one made the top five according the National Association of Realtors. https://www.syracuse.com/data/2024/05/multiple-upstate-ny-places-among-hottest-real-estate-markets-in-us.html. To see the list of top 25 hottest New York ZIP codes for real estate in April, click here to open it in a new window.

REGULATORY NEWS

• DFS On FSOC Nobbank Mortgage Servicing. NYS DFS Superintendent Harris issued a statement on the Report by the Financial Stability Oversight Council on "Nonbank Mortgage Servicing." Harris reviewed the highlights of the report and noted continued close collaboration and innovation by state regulators and federal agencies will strengthen our mortgage market. She said the report “provides a helpful snapshot of the current state of the nonbank mortgage market and provides a set of thoughtful initial recommendations. I look forward to working with my fellow Council members, Congress, and my colleagues in the states to further analyze and develop these proposals. . .”

• Cannabis Agency Shakeup. The state’s audit of the Office of Cannabis Management resulted in a shakeup in leadership and a change of operations for the embattled agency. How long will it take to fix it? Here's the Governor’s plan: https://www.yahoo.com/news/ny-botched-cannabis-rollout-long-070530080.html

• DFS On The Budget. DFS Superintendent Harris commented on the 2024-25 state budget: : “The Department is proud to help advance and implement bold initiatives from the Governor and the Legislature in this FY25 Budget. . . . DFS will continue working every day on these and other initiatives to build a more equitable, transparent, and resilient financial system that serves all New Yorkers.”

LEGISLATIVE UPDATE

• Latest On ACRE Act. ICBA urged the House Ways and Means Committee to take up ICBA-advocated legislation to support lending in rural communities. The “Access to Credit for our Rural Economy (ACRE) Act” (H.R. 3139/S. 2371) by Sens. Moran (R-KS) and King (I-ME) and Reps. Feenstra (R-IA) and Nickel (NC) would make interest income on farm real estate and rural mortgage loans tax-exempt. In a statement for the record ICBA said it would promote the availability of affordable homes in rural communities. Community bankers: Use ICBA’s Be Heard grassroots resource center to connect with their lawmakers and urge support for the bill.

• "Junk Fees" Update. During a hearing on “junk fees” in financial services and housing, Senate Banking Committee Member Scott (R -SC) touted his ICBA-supported resolution to nullify the CFPB rule on credit card late fees during a committee hearing, noting the rule would result in lower credit limits and higher interest rates for borrowers along with new fees for services that are currently provided free of charge. ICBA supports Scott’s Congressional Review Act resolution, which would express congressional disapproval of the rule and nullify its implementation. Last month, an ICBA-supported House companion resolution introduced by Rep. Barr (R-KY) passed the House Financial Services Committee. In a national news release ICBA said the rule sends the wrong message that punctual credit card payments are not a significant priority, which will harm consumers by leading to more late payments and additional interest charges.

• New York's Newest Congressman. Rep. Tim Kennedy (D-Erie County) concluded his first week as a member of Congress. Kennedy took the oath after winning a special election to represent his Buffalo-area House district. Read more.

REGULATORY MATTERS

• Oppose Fed Interchange Proposal. ICBA opposed a Fed proposal to impose a nearly 30% cut to debit interchange that would leave nearly one-third of covered issuers below cost recovery and would lower the maximum interchange fee that covered debit card issuers may receive for debit card transactions under Reg II. It would adjust the interchange fee cap for debit card issuers with at least $10 billion in assets and establish a regular process for updating the maximum amount every other year based on issuer cost data. Read ICBA’s comment letter. ICBA and other financial services trade groups also issued a joint letter joint comment letter -- urging the Fed to rescind its proposal. 

• CFPB Credit Card Late Fee Rule. A federal judge issued a temporary injunction of the CFPB’s CFPB rule on credit card late fees, which was scheduled to take effect tomorrow, pending a U.S. Supreme Court decision on the constitutionality of the CFPB’s funding structure. The high court is due to rule by the end of June. on a decision that the CFPB’s funding structure violates the Constitution’s appropriations clause and separation of powers. That case has also led to an ICBA-advocated nationwide injunction of the bureau’s 1071 final rule on small-business data collection and reporting. In a national news release after the rule’s release, ICBA said the rule sends the wrong message that punctual credit card payments are not a significant priority, which will harm consumers by leading to more late payments and additional interest charges.

• CRE Update. Fed Governor Cook said the Fed is stepping up supervisory work with community and regional banks that have significant commercial real estate concentrations. Cook said CRE loans make up roughly 5% of total assets at large banks and around 30% of assets at smaller banks. Cook also cited the overall resilience of the banking sector, the solid state of bank profitability, and the stability of deposit flows. Last December, the FDIC issued an advisory to reemphasize the importance of strong capital, appropriate credit loss allowance levels, and robust credit risk-management practices for institutions with commercial real estate concentrations.

• Needed: Comprehensive Reg Review! An ICBA blog post notes ICBA’s calls for regulators to conduct a comprehensive regulatory review under the Economic Growth and Regulatory Paperwork Reduction Act, or EGRPRA. Main Street Matters says: 1) Problematic practices by transaction-focused large banks have long led to new rules for the entire banking sector, with a recent rash of rulemaking totaling 7,000 pages of new rules since July; 2) The current regulatory approach results not in safer and sounder institutions, but check-the-box exercises for examiners, under which community banks are collateral damage in the agencies’ continued inability to properly oversee too-big-to-fail banks; 3) Regulators must take bold action under the latest EGRPRA review to eliminate one-size-fits-all mandates that fail to consider the community banking business model. In a recent comment letter, ICBA urged regulators to hire an outside consultant to quantify the regulatory burden on community banks and designate an overall director of the current EGRPRA review process who can cut through the objections of individual agencies.

• More On Bank Regulation & Supervision. Fed Governor Bowman said when it comes to bank regulation and supervision, “We should not assume that more is always better.” Bowman said: 1) There are always consequences to financial stability from mis-calibrated regulatory and supervisory actions and the cumulative effects of regulatory proposals; 2) The proposed Basel III endgame capital rules are excessively calibrated and disproportionate to risk. 3) More regulation and more supervision are only effective if the changes are targeted to address an existing problem and are appropriately focused and efficient.

• New Thresholds From Fed, CFPB. The Fed and CFPB jointly adjusted for inflation dollar amounts relating to the availability of customer funds. These changes in Regulation CC include the minimum amount of deposited funds that banks must make available for withdrawal by opening of business on the next day for certain check deposits as well as the amount of funds deposited by certain checks in a new account that are subject to next-day availability. New Thresholds: Minimum amount: $275; Cash withdrawal amount: $550; New-account amount: $6,725; Large-deposit threshold: $6,725; Repeatedly overdrawn threshold: $6,725; Civil liability minimum and maximum for individual action: $125/$1,350; Civil liability maximum for class action: $672,950. The agencies are required to adjust these dollar thresholds every five years by the annual percentage increase in the Consumer Price Index. The inflation measurement period for this adjustment began in July 2018 and ended in July 2023.The compliance date for the new amounts is July 1, 2025.

• Third Party Risk. Federal banking regulators released a guide for community banks on managing risk in third-party relationships, as a resource to help community banks in developing and implementing their third-party risk management programs, policies, and practices. A copy of the Guide can be found on the FDIC website. The guide illustrates principles discussed in the third-party risk management guidance issued by the agencies in June 2023, but it is not a substitute for that guidance. https://www.fdic.gov/news/financial-institution-letters/third-party-risk-management-guide-community-banks?source=govdelivery&utm_medium=email&utm_source=govdelivery.

• Climate Update. The Fed released a summary of an exploratory pilot climate scenario analysis exercise it conducted with six of the nation's largest banks on large banks’ ability to identify and manage climate-related financial risks. The pilot does not have consequences for bank capital or supervisory implications. The megabanks reported challenges in conducting the climate analysis. In a statement to Congress last month, ICBA said the SEC’s final rule requiring climate-related investor disclosures and related agency efforts are an emerging threat to community banks and their customers. 

• Nonbank Mortgage Servicers. The Financial Stability Oversight Council issued a report on the strengths and vulnerabilities of nonbank mortgage servicers and recommendations for enhancing the resilience of the sector.