NCUA board approves rules on derivatives, corporate credit- union regulation

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The board of directors of the National Credit Union Administration (NCUA) on Oct. 15 held its monthly meeting, unanimously approving a proposed rule on derivatives and a final rule regarding corporate credit unions. The group also heard a cybersecurity briefing. Details on the NCUA board meeting were posted on the Oct. 16 New York Minute […]

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The group also heard a cybersecurity briefing.

Details on the NCUA board meeting were posted on the Oct. 16 New York Minute blog of the New York Credit Union Association.

Derivatives rule

The proposed rule would modernize the NCUA’s derivatives rule and make it more “principles-based” and allow “more flexibility” for federal credit unions to manage their interest-rate risk through these financial instruments, according to the Alexandria, Virginia–based NCUA.

The proposed changes include eliminating the pre-approval process for federal credit unions that are complex with a management CAMEL component rating of one or two.

CAMEL is a rating system that’s short for capital adequacy, asset quality, management, earnings, and liquidity.

They also include eliminating the specific product permissibility and removing the regulatory limits on the number of derivatives a federal credit union may purchase.

Comments on the proposed derivatives rule will be accepted for 60 days following publication in the Federal Register, NCUA said.

Corporate credit unions

The final rule regarding corporate credit unions “updates and simplifies” provisions of the NCUA’s corporate credit-union regulation.

Those provisions include permitting a corporate credit union to make a minimal investment in a credit-union service organization (CUSO) without classification for the CUSO as a corporate CUSO under the NCUA’s rules.

They also include expanding the categories of senior staff positions at member credit unions eligible to serve on a corporate credit union’s board and amending the minimum experience and independence requirement for a corporate credit union’s enterprise risk-management expert.

Comments on the final corporate credit-union rule will be accepted for 30 days following publication in the Federal Register, NCUA said.

Cybersecurity briefing

The board also received a briefing on cybersecurity considerations during the COVID-19 pandemic.

It included a warning that throughout the COVID-19 pandemic, the financial-services industry — including credit unions — remains a “major target” for hackers and thieves who are adapting their techniques to take advantage of an increased use of remote operations.

The special advisor to the chairman for cybersecurity said that boards of directors play a “critical role” in strengthening their institution’s cyber-preparedness levels, and as they evaluate their institution’s information-security programs, they should evaluate their responses to four questions.

First, have business impact and business-process scenarios been reviewed and revised in the continuity plans based on the operating conditions of COVID-19?

Second, how are policies and procedures related to remote access being strengthened to address the heightened risks created by employees working from home?

Third, has the incident-management plan been updated for leadership and employees in a remote working environment?

And fourth, how is the business changing its strategic priorities in the short, mid, and long term to address the potential change to norms?

The cybersecurity briefing and a cybersecurity resources webpage are both available on the NCUA website: ncua.gov.

AmeriCU names new chief experience officer

Banks & Credit Unions, Regional News, Subscriber Only

ROME — AmeriCU Credit Union has hired a new chief experience officer as the credit union celebrates seven decades of operation. The nonprofit AmeriCU serves nine counties in Central and Northern New York. The organization has grown to more than 140,000 members, 19 locations, and $2 billion in assets. AmeriCU Credit Union is headquartered in

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ROME — AmeriCU Credit Union has hired a new chief experience officer as the credit union celebrates seven decades of operation.

The nonprofit AmeriCU serves nine counties in Central and Northern New York. The organization has grown to more than 140,000 members, 19 locations, and $2 billion in assets. AmeriCU Credit Union is headquartered in Rome.

New chief experience officer

AmeriCU has hired Alissa Sykes Tulloch as its new chief experience officer.

Ron Belle, the credit union’s CEO, previously served in that role before his appointment to the organization’s top position.

“Alissa’s experience creating and executing member and employee focused initiatives, along with her passion for the credit union movement, will be a valuable asset,” Belle said in a news release. “Her knowledge and vision will help strengthen AmeriCU Credit Union’s central mission while keeping our focus on the member experience.”

Sykes Tulloch comes to AmeriCU Credit Union with more than 15 years of experience working in credit unions. She most recently worked for Sunmark Credit Union in the Capital Region in roles that included chief lending officer and most recently, chief growth officer, per her LinkedIn profile.

In her new role as chief experience officer, Sykes Tulloch will be responsible for enhancing AmeriCU’s retail and operational processes and member-delivery channels.

AmeriCU says she will work to implement improvements to the “current member experience,” allowing the credit union to continue to provide members with the right financial services for their life situation.

Anniversary certificate

The Rome Area Chamber of Commerce on Oct. 15 presented a certificate to AmeriCU in honor of the credit union’s 70th anniversary.

Adam Hovak, chairman of the Rome Area Chamber, presented the certificate to Belle at AmeriCU’s headquarters located at 1916 Black River Blvd. in Rome.

AmeriCU has served its members and their families since 1950. The organization acknowledged its anniversary as it commemorated International Credit Union Day.

Each year, credit-union members around the world come together to celebrate International Credit Union Day to raise awareness about what it means for members to have a credit union as their financial partner, per an Oct. 12 Rome Area Chamber release. This year’s theme was “Inspiring Hope for a Global Community.”

Renovation project at Syracuse Fire Department Credit Union continues

Banks & Credit Unions, Construction, Design & Real Estate, Subscriber Only

Besides the renovation project, the credit union’s board of directors in late July announced the appointment of Andrea Thune as its new CEO. Thune began her duties Aug. 3 following the retirement of then CEO Jeffrey Fragale. “After an extensive search, the board of directors is pleased to announce the appointment of Ms. Thune to

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Brown & Brown Insurance boosts quarterly dividend by nearly 9 percent

Banks & Credit Unions, Insurance & Financial Services, Law, Accounting & Taxes, Subscriber Only

Brown & Brown, Inc. (NYSE: BRO), the Florida–based parent of Syracuse–based Brown & Brown Empire State, recently announced that its board of directors has declared a regular quarterly cash dividend of 9.25 cents a share. The dividend is payable on Nov. 18 to shareholders of record on Nov. 4, the insurance agency said in a news

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Summit FCU board of directors appoints new chair

Banks & Credit Unions, Regional News, Subscriber Only

Since 2019, Modesti has been the executive VP and CFO of Sweeteners Plus, LLC, a manufacturer and distributor of sugar products in Lakeville in Livingston County. Formerly president of Biomaxx, Inc., he remains on the company’s board. Modesti is also a director on the boards of Highland Hospital in Rochester and the Rochester chapter of

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SBA simplifies PPP loan-forgiveness application for borrowers of $50K or less

Banks & Credit Unions, Small Business, Subscriber Only

The U.S. Small Business Administration, in consultation with the Treasury Department, recently rolled out a simpler loan-forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. The application, called SBA Form 3508S, requires fewer calculations and less documentation for eligible borrowers. Perhaps most importantly, borrowers that use SBA Form 3508S are exempt from

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The application, called SBA Form 3508S, requires fewer calculations and less documentation for eligible borrowers. Perhaps most importantly, borrowers that use SBA Form 3508S are exempt from reductions in loan-forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages. The form also does not require borrowers to show the calculations used to determine their loan forgiveness, per the SBA. However, the agency may request information and documents to review those calculations as part of its loan-review process.

The agency contends the new application streamlines the PPP forgiveness process to provide financial and administrative relief to small businesses, while still protecting taxpayer funds.

“Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” U.S. Treasury Secretary Steven T. Mnuchin said in an Oct. 9 news release. “We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process.”

One local, veteran banker that works with area small businesses welcomed the forgiveness-application changes.

“That’s a big help for those companies that only borrowed $50,000 or less,” says Lee DeAmicis, regional manager of business banking at M&T Bank in Syracuse. He has been with the bank for 25 years. “It’s a simpler application to fill out. The application itself is certainly streamlined.”

DeAmicis, who spoke with CNYBJ on Oct. 20, says he hasn’t heard talk that the simplified application would also be eventually rolled out to companies who borrowed more PPP money, such as up to $150,000. Instead, there’s been more discussion that perhaps Congress will pass further legislation to forgive all loans under $150,000 as long as companies used the funds properly. “I think some small businesses will kind of delay” to see if that does happen, DeAmicis says.

M&T Bank made nearly 2,000 PPP loans in the Syracuse and Utica markets for $416 million. Of that total, about $250 million went to small businesses, with the remainder going to slightly larger companies.

The average loan amount was almost $209,000. These loans helped companies that employed 40,000 people.

Companywide, Buffalo–based M&T helped more than 35,000 small businesses receive more than $7 billion through PPP loans.

M&T Bank had already submitted more than 500 loan-forgiveness applications on behalf of clients to the SBA for approval, companywide, as of Oct. 16, according to DeAmicis. “We’ve heard that they’ve approved somewhere in the mid-200s,” he adds.

SBA and Treasury have also eased the burden on PPP lenders, allowing lenders to process forgiveness applications more swiftly.

SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on Oct. 2.

The simpler loan-forgiveness application is available at https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20Form%203508S.pdf

The instructions for completing the streamlined loan-forgiveness application are viewable at https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20Form%203508S%20Instructions.pdf

CG Capital settles into new office in New Hartford

Banks & Credit Unions, Subscriber Only

NEW HARTFORD — Financial-services firm CG Capital (formerly CoughlinGiambrone, LLC), recently announced its new office at 139 Genesee St. in New Hartford, after completing a restoration of the exterior and interior of the century-old building. The new office encompasses 3,000 square feet. CG Capital was previously situated in a 1,500-square-foot leased space at 610 French Road in

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Chemung Canal Trust expands lending operations into Buffalo market

Banks & Credit Unions, Regional News, Subscriber Only

ELMIRA — Chemung Canal Trust Company, a unit of Chemung Financial Corp. (NASDAQ: CHMG), announced on Oct. 21 that it will expand its lending operations to serve the City of Buffalo, as well as Erie and Niagara Counties. “I am happy to announce that the bank will be entering the Western New York market with

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Community Banks Can Leverage Unique Benefits to Gain and Keep Customers

Banks & Credit Unions, Subscriber Only

The Federal Reserve’s 2019 Small Business Credit Survey (https://www.fedsmallbusiness.org/survey/2019/report-on-employer-firms) shows that 79 percent of independent businesses that used small banks were satisfied with their overall experience, compared with 67 percent for large banks and just 49 percent for online lenders. As experienced by many business leaders and entrepreneurs during the recent Paycheck Protection Program (PPP) loan

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As experienced by many business leaders and entrepreneurs during the recent Paycheck Protection Program (PPP) loan process, community banks and smaller regional banks can provide a higher level of personalized service to accounts of all sizes. However, even with a strong reputation, community banks have long struggled with the perception that their larger competitors are better equipped to help businesses through their financial difficulties.

The business challenges of 2020 have been unique to say the least. These circumstances have brought about a renewed understanding of the benefits of working with community banks and these institutions are currently in prime position to leverage their positive qualities to attract new customers. With that said, recent events have impacted customer behavior in many different ways. Community-bank leadership must also keep in mind that amidst the ongoing COVID-19 pandemic, consumers are looking for safety and comfort anywhere they can find it. This emphasis on consistency for individuals and businesses alike, may make it more difficult for community banks to convince prospective customers to make the switch. Therefore, they must actively promote the ways that their services can benefit these prospects.

Less red tape equals faster results

One advantage of community banks over their larger national competitors is that these regional organizations are often able to work faster as they are dealing with less red tape from both a regulatory and institutional standpoint. As the number of business regulations increases — from the local to the federal level — community banks should not undervalue the benefit of giving business leaders a smoother banking experience.

Decisions made locally

Another factor contributing to community banks’ ability to move quickly is that decisions are made locally. Customers work face to face with those close to the decision-making process instead of trying to reach a distant corporate office or having a local relationship manager who has to obtain underwriting approval from a corporate office. As such, customers are able ask questions and request information with the confidence that the person they are speaking with has a direct hand in policy/decision-making or direct access to those who do.

Better understanding of local climate

Community-bank leaders and their relationship managers live and work in the same region as their customers, giving these bankers a better understanding of the challenges facing local business owners. During the COVID-19 pandemic, each region has faced different challenges and economic circumstances based on local and state regulations to combat the spread of the virus. More than ever before, banks need to provide customers with personalized advice and solutions based on their unique situations, and community banks are best positioned to do so.

Room for improvement in some areas

While community banks have myriad integral benefits that can help attract customers and maintain positive customer relationships, there are areas where these organizations still lag their larger national peers. Technology is one common opportunity for improvement among regional banks. Over the past several years, customers have placed increased emphasis on access to technology when selecting a banker and this trend has been accelerated by the COVID-19 pandemic. From mobile deposits to online bill pay to immediately responsive chatbots, customers want the banking services they need at their fingertips. Additionally, in an era of growing fraud and cybersecurity threats, banking customers want to feel confident that their financial institution has implemented the proper technology and procedures to reduce the risk of an incident or data breach.

There is no doubt this is an era of change for many industries. For community banks, the key will be to understand business needs and consumer behavior and leverage all the ways their services align with evolving customer priorities.

Marc Valerio is a partner in The Bonadio Group’s Commercial Division and an active member of the Financial Institutions Team. Contact him at mvalerio@bonadio.com.

Brooks-Rolling appointed to M&T Bank CNY Region Directors Advisory Council

Banks & Credit Unions, Subscriber Only

SYRACUSE — M&T Bank announced it has appointed Me’Shae Brooks-Rolling to its Directors Advisory Council for the Central New York region. The 11-member council meets regularly throughout the year to provide M&T management with insight on a wide range of business, client, and community issues. Brooks-Rolling has been owner of the local franchise of EventPrep,

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SYRACUSE — M&T Bank announced it has appointed Me’Shae Brooks-Rolling to its Directors Advisory Council for the Central New York region.

The 11-member council meets regularly throughout the year to provide M&T management with insight on a wide range of business, client, and community issues.

Brooks-Rolling has been owner of the local franchise of EventPrep, Inc. since 2018. The national firm specializes in hotel and vendor contracting and meeting and event planning. She is the first owner/operator of the EventPrep brand in New York state and the Northeast territory. Brooks-Rolling is also a certified educator in personal finance and author of two books on financial literacy. In 2021, she will merge her passions of financial literacy and conference planning by producing the first-ever Financial Empowerment Summit.

Brooks-Rolling was awarded an Alfred P. Sloan fellowship to pursue her Master of Public Administration degree from the Maxwell School of Public Administration (MPA) at Syracuse University, earning her MPA degree in 1990. She obtained a certificate in meeting and conference management at New York University and worked as a senior events coordinator in the City of New York Mayor’s office. Brooks-Rolling currently serves as executive director for the Upstate Minority Economic Alliance (UMEA), as well as an advisory board member of the WISE Women’s Business Center (Women Igniting the Spirit of Entrepreneurship) and steering committee member of the CA$H Coalition of Onondaga County.

“M&T’s Central New York Directors Advisory Council consists of local business leaders who advocate for our region and are actively involved in the community. This group provides a variety of perspectives and solutions for how we can grow, strengthen and improve our community,” Allen Naples, M&T Bank regional president for Central New York, said in a release.

“Me’Shae is an excellent addition to our advisory council. She is passionate about our region and brings a wealth of knowledge on entrepreneurship and financial literacy. With her experience in special events and hospitality, she will help deepen our understanding and inform our advocacy to support an industry that has been severely impacted by the pandemic,” Naples added.

In addition to Brooks-Rolling, M&T Bank’s Directors Advisory Council for the Central New York region is comprised of: Andy Breuer, Hueber-Breuer Construction; Mara Charlamb, United Radio; James (Jim) Fox, O’Brien & Gere; Karyn Korteling, Pastabilities; Robert (Luke) Lewis, Lewis Custom Homes; Robert H. Linn, formerly with Ernst & Young; Joseph Mancuso, Hancock & Estabrook; Scott Shatraw, Utica First Insurance; Meg Tidd, VIP Structures; and Melissa Zell, The Pioneer Companies.

M&T Bank’s Central New York regional headquarters manages operations for its 45 local offices, with nearly 500 employees across eight counties (Cayuga, Herkimer, Jefferson, Madison, Oneida, Onondaga, Oswego, and Seneca).

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