1) May 4, 2015 To the Governor and Legislature: I am pleased to submit the 2014 Annual Report of the New York State Department of Financial Services, as required by Article 2, Section 207 of the Financial Services Law. Throughout 2014, the Department carried out its mission to protect consumers and to promote the development of sound, fair financial services. The Department’s work is varied and is detailed in the report. As its charter instructs, the Department has and will continue to work aggressively to foster the growth of a fair, robust financial services industry and to protect consumers. I hope you find the report useful. Respectfully submitted, Benjamin M. Lawsky Superintendent
2) 2014 Annual Report Benjamin M. Lawsky, Superintendent
3) INTRODUCTION ............................................................................................................................................................. 1 MAJOR ACCOMPLISHMENTS ......................................................................................................................................... 2 SUMMARY OF MAJOR ENFORCEMENT ACTIONS SINCE AGENCY’S INCEPTION ................................................................ 7 INSURANCE DIVISION OVERVIEW ................................................................................................................................. 11 . BANKING DIVISION OVERVIEW ..................................................................................................................................... 13 CAPITAL MARKETS DIVISION OVERVIEW ....................................................................................................................... 14 REAL ESTATE FINANCE DIVISION OVERVIEW ................................................................................................................ 15 . FINANCIAL FRAUDS AND CONSUMER PROTECTION DIVISION ...................................................................................... 16 LIQUIDATION BUREAU OVERVIEW ................................................................................................................................ 18 REGULATORY AND LEGISLATIVE ACTIVITIES ................................................................................................................. 19 REGULATIONS ................................................................................................................................................................ 19 INDUSTRY AND CIRCULAR LETTERS ............................................................................................................................... 19 CHANGES TO THE BANKING, INSURANCE AND FINANCIAL SERVICES LAWS ................................................................. 19 LEGISLATIVE RECOMMENDATIONS FOR 2015 ............................................................................................................... 19 BANKING STATISTICS ................................................................................................................................................... 20 SUMMARY OF SUPERVISED INSTITUTIONS ................................................................................................................... 20 CONDITION OF ALL PRINCIPAL BANKING AND LENDING FACILITIES IN NEW YORK ...................................................... 20 NEW YORK STATE CHARTERED AND LICENSED BANKING, LENDING AND FINANCIAL SERVICES INSTITUTIONS ........... 22 CONVERSION FROM FEDERAL CHARTER TO STATE CHARTER ....................................................................................... 23 BANK MERGERS AND ACQUISITIONS ............................................................................................................................ 23 LIQUIDATIONS ............................................................................................................................................................... 23 CONDITION OF SUPERVISED INSTITUTIONS .................................................................................................................. 24 CONDITION OF COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS ...................................................................... 24 CONDITION OF SAVINGS BANKS AND THRIFTS ............................................................................................................. 31 CONDITION OF SAVINGS BANKS AND THRIFTS ............................................................................................................. 32 CONDITION OF SAFE DEPOSIT COMPANIES .................................................................................................................. 33 CONDITION OF CREDIT UNIONS .................................................................................................................................... 34 CONDITION OF CREDIT UNIONS .................................................................................................................................... 35 CONDITION OF ARTICLE XII INVESTMENT COMPANIES ................................................................................................. 36 CONDITION OF LICENSED LENDERS ............................................................................................................................... 37 INSURANCE COMPANY STATISTICS ............................................................................................................................... 39 GENERAL STATISTICS ..................................................................................................................................................... 39 LICENSES ISSUED DURING YEAR .................................................................................................................................... 39 CHANGES IN AUTHORIZED INSURERS ........................................................................................................................... 40 . REPORTS FILED ON EXAMINATION OF AUTHORIZED INSURERS ................................................................................... 46 LIQUIDATION, CONSERVATION AND REHABILITATION PROCEEDINGS ......................................................................... 46 INSURANCE COMPANY PROCEEDINGS .......................................................................................................................... 46 DOMESTIC ESTATES AND CONSERVATION ESTATES †ASSETS & LIABILITIES ................................................................. 46 DOMESTIC ESTATES IN REHABILITATION †ASSETS & LIABILITIES .................................................................................. 46 LIQUIDATION AND REHABILITATION ACTIVITIES ........................................................................................................... 46 PROPERTY AND CASUALTY INSURANCE ........................................................................................................................ 51 PROPERTY/CASUALTY INSURANCE ENTITIES SUPERVISED BY THE DEPARTMENT ........................................................ 51 LICENSED PROPERTY/CASUALTY INSURER SELECTED DATA 2010â€2013 ....................................................................... 52 .
4) PROPERTY/CASUALTY INSURER DIRECT PREMIUMS WRITTEN 2010â€2013 ................................................................... 53 PROPERTY/CASUALTY NET PREMIUMS WRITTEN ......................................................................................................... 54 FINANCIAL GUARANTY INSURERS SELECTED DATA ....................................................................................................... 54 MORTGAGE GUARANTY INSURERS SELECTED ANNUAL STATEMENT DATA ................................................................. 55 MORTGAGE GUARANTY INSURERS NET PREMIUMS WRITTEN AND SURPLUS ............................................................. 55 TITLE INSURANCE COMPANIES SELECTED DATA ........................................................................................................... 55 ADVANCE PREMIUM AND ASSESSMENT CORPORATIONS SELECTED DATA .................................................................. 56 HEALTH INSURANCE ...................................................................................................................................................... 56 HEALTH INSURANCE ASSETS, LIABILITIES AND PREMIUMS WRITTEN ........................................................................... 56 LIFE INSURANCE ............................................................................................................................................................ 57 LIFE INSURANCE COMPANIES REGULATED BY THE DEPARTMENT ................................................................................ 57 LIFE INSURANCE COMPANY ADMITTED ASSETS ............................................................................................................ 57 LIFE INSURER ASSETS, LIABILITIES, CAPITAL & SURPLUS ............................................................................................... 58 TOTAL LIFE INSURANCE IN FORCE (COMPANIES LICENSED IN NEW YORK STATE) ........................................................ 58 LIFE INSURANCE IN FORCE IN THE STATE OF NEW YORK .............................................................................................. 58 DOMESTIC LIFE INSURANCE COMPANIES ADMITTED ASSETS/INSURANCE IN FORCE .................................................. 59 FRATERNAL BENEFIT SOCIETIES ADMITTED ASSETS/INSURANCE IN FORCE ................................................................. 59 PRIVATE PENSION FUNDS ADMITTED ASSETS/INSURANCE IN FORCE .......................................................................... 59 PUBLIC RETIREMENT SYSTEMS AND PENSION FUNDS ADMITTED ASSETS/INSURANCE IN FORCE ............................... 60 SEGREGATED GIFT ANNUITY FUNDS ADMITTED ASSETS/INSURANCE IN FORCE 2001â€2011 ........................................ 60 FUNDS HELD BY OR DEPOSITED WITH THE SUPERINTENDENT ...................................................................................... 61 UNCLAIMED FUNDS FROM VOLUNTARY OR INVOLUNTARY BANK LIQUIDATIONS ...................................................... 61 PUBLIC MOTOR VEHICLE LIABILITY SECURITY FUND ..................................................................................................... 61 PROPERTY CASUALTY INSURANCE SECURITY FUND ...................................................................................................... 62 WORKERS COMPENSATION SECURITY FUND ................................................................................................................ 62 STATE TRANSMITTER OF MONEY INSURANCE FUND (STMIF) ....................................................................................... 63 DEPARTMENT ORGANIZATION AND MAINTENANCE .................................................................................................... 64 2014 DEPARTMENT RECEIPTS ....................................................................................................................................... 64 2013â€2014 STATE FISCAL YEAR INSURANCE EXPENDITURES ......................................................................................... 65 2013â€2014 STATE FISCAL YEAR BANKING EXPENDITURES............................................................................................. 66
5) INTRODUCTION The Department is responsible for supervising and regulating the activities of over 1,600 insurance companies with assets exceeding $3.4 trillion and nearly 1,700 banking and other financial institutions with assets of more than $3.2 trillion. The Department is organized into five divisions: The Insurance Division supervises all insurance companies that do business in New York. The Division includes the Property, Life and Health Bureaus. The Banking Division supervises, through chartering, licensing, registering, and examining safety and soundness of banking and other financial institutions. The division is composed of the following groups: Foreign & Wholesale Banks, Community & Regional Banks and Licensed Financial Services. The Financial Frauds and Consumer Protection Division is responsible for protecting and educating consumers and fighting consumer fraud. The FFCPD encompasses the Civil Investigations Unit, the Criminal Investigations Unit; the Consumer Assistance Unit; the Disciplinary Unit; the Consumer Examinations Unit; the Student Protection Unit; and the Holocaust Claims Processing Office. The Capital Markets Division provides the Department's expertise in capital markets (bonds, equities, credit, derivatives, commodities), Enterprise Risk Management, financial analysis, IT, internal controls and audit, research, fiduciary controls, regulatory accounting, Bank Secrecy Act, anti-money laundering and new financial products. Capital Markets works with all the other Divisions in examinations and also conducts target examinations independently. The Division has the primary regulatory responsibility for the New York State based public retirement systems and financial guaranty insurance companies. The Real Estate Finance Division is responsible for regulating all real estate and homeowner issues, as well as such financial services as title insurance and mortgage insurance. The division includes Mortgage Banking and the Mortgage Assistance Unit. Data in this report are for the year 2014, unless stated otherwise. Financial data for the Department is for the fiscal year 2013-2014. To reduce reproduction costs, data that is posted on the Department website in the normal course of business, and that has been included in prior reports, is now instead referenced only on the website. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 1
6) MAJOR ACCOMPLISHMENTS Four years ago, in the wake of a devastating financial crisis, Governor Cuomo proposed creating the New York State Department of Financial Services (NYDFS) and appointed Benjamin M. Lawsky as the agency’s first superintendent. NYDFS supervises approximately 3,800 financial firms with assets totaling more than $7 trillion, including most of the large foreign banks operating in New York; the major U.S. and foreign insurance companies operating in New York; and other non-bank financial companies. In the four years since its creation, by employing a number of innovative and aggressive enforcement strategies, NYDFS has become recognized as an international leader in (1) policing Wall Street, (2) protecting consumers, and (3) regulating financial markets. INNOVATIVE AND AGGRESSIVE APPROACH TO WALL STREET ENFORCEMENT ï‚· Record $6 Billion in Penalties, Individual Accountability for Senior Executives. NYDFS has brought significant, civil enforcement actions against a number of the world’s largest banks, insurers, and mortgage companies for misconduct, including money laundering and foreclosure abuse. (To view a list of major NYDFS enforcement actions, please visit, link.) While NYDFS has levied nearly $6 billion in monetary penalties against financial firms (more than any state agency in history), it has also repeatedly stressed the importance of individual accountability for senior executives in its settlements, including through the termination of employees who engaged in misconduct. As Superintendent Lawsky noted in a 2014 speech in Washington, DC: “If we’re just getting large fines from the corporations . . . are we really deterring future bad conduct? . . . To get real deterrence, we need to have individuals who are personally held to account.” (See Financial Times: “Lawsky to step up assault on Wall Street’s corporate wrongdoing,” March 2014.) ï‚· Penalties for Senior Executives, Up to and Including the C-Suite. While NYDFS does not have authority to bring criminal prosecutions, it took a number of actions to expose and penalize misconduct by individual senior executives – including all the way up to the C-Suite, when appropriate. Among other actions, NYDFS required the Chief Operating Officer of France’s largest bank, BNP Paribas, and the Chairman of one of the United States’ largest mortgage companies, Ocwen Financial, to step down as part of enforcement actions brought against those companies. The Department has also banned multiple senior executives from participating in the operations of NYDFS-regulated institutions for engaging in misconduct. (See The New Republic: “Finally, a Financial Executive Is Sacked for His Company's Misdeeds,” December 2014; Bloomberg News, “Falcone Banned at Fidelity for 7 Years by N.Y.’s Lawsky,” October 2013.) ï‚· Accountability for Bank Consultants through a Century-old Statute. NYDFS became the first financial regulator to bring successful enforcement actions against bank consulting companies – including “Big 4” firms PwC and Deloitte – for their roles in helping large financial institutions whitewash misconduct. While other regulators stated that they did not have the DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 2
7) ability to investigate and punish bank consultants, NYDFS unearthed and used a more than century-old statute to ban those firms from doing work at institutions regulated by the Department, among other penalties. (See New York Magazine: The Regulator Who’s Not Afraid of Wall Street, June 2013; New York Times: “Albany May Tighten Reins on Bank Consultants,” June 2013.) ï‚· Disrupting Terrorist Financing for Iran and Other Rogue Nations. Through enforcement actions against Standard Chartered Bank, BNP Paribas, Bank of Tokyo Mitsubishi-UFJ, RBS, and other major, international financial firms, NYDFS helped significantly raise the bar and stiffen the penalties imposed on financial institutions for illegally doing business with Iran, Sudan, and other rogue nations. (See Newsweek: “Regulator Benjamin Lawsky is the Man Banks Fear Most,” May 2014; Village Voice: “Benjamin Lawsky: The Main Who Picked a Fight with Wall Street,” September 2013; Politico: “Cuomo Aide Turned Wall Street Hammer” June 2013.) ï‚· Identifying and Investigating a New Front in Foreclosure Abuse. In the wake of the financial crisis, a number of large banks sold off their rights to service mortgages to more lightly regulated firms known as “non-bank mortgage servicers.” NYDFS commenced an aggressive and wide-ranging investigation – including “surprise” examinations – into non-bank mortgage servicers, shining a spotlight on foreclosure abuses in this industry and bringing enforcement actions to deliver relief to homeowners. (See Bloomberg News, “New York’s Lawsky Catches Mortgage Servicers by Surprise,” April 2014. The New Republic, “The Toughest Cop on Wall Street You’ve Never Heard Of: How Benjamin Lawsky is Making the Big Banks Pay,” April 2014.) CREATING A STATE-LEVEL CONSUMER FINANCIAL PROTECTION BUREAU AT NYDFS ï‚· Creating a State-level Consumer Financial Protection Bureau. One of the key missions that Governor Cuomo gave NYDFS was to protect consumers better than ever before. The Department moved quickly to create and build an aggressive consumer protection unit that won a number of victories for New Yorkers against abusive lenders and insurance companies. NYDFS work in this area has been cited as “nation-leading” and helped establish the agency as an “energetic consumer watchdog.” (See American Banker, “The Long Arm of Benjamin Lawsky,” August 2013.) ï‚· Combatting Illegal, Online Payday Lending Charging Interest Rates Over 1,000%. Payday lending is illegal in New York for good reason. Those predatory short-term loans, with interest rates as high as 1,000 percent, often trap borrowers in destructive cycles of debt from which they cannot escape. In some cases, however, lenders attempt to do an end run around New York’s prohibition on payday lending by offering loans over the Internet – and collecting on them using electronic payment and debit networks – in an effort to avoid prosecution. The Cuomo Administration has taken a series of steps to help stop illegal online payday lending in New York through a multi-faceted, full-court press. These include measures to cut off online DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 3
8) payday lenders access to the bank payment system, which has helped lead a majority of the firms that NYDFS targeted to stop lending into New York. NYDFS was also the first regulator to bring a successful enforcement action against a payday loan “lead generation” firm, which market those illegal loans. (See National Memo, “Making Too Big to Fail Banks Help Poor Borrowers,” August 2013; New York Post, “Lawsky Cracks Down on Lender Backed by Montel Williams, March 2015.) ï‚· Helping Consumers Fight Back Against Abusive and Harassing Debt Collection Practices. In 2014 alone, New York consumers filed more than 20,000 complaints regarding debt collection practices. To help combat this problem, Governor Cuomo and NYDFS announced new, nationleading reforms. These new NYDFS regulations will provide consumers with important disclosures to help combat aggressive and deceptive practices that take advantage of confusion or fear; help stop attempts to sue to collect "zombie debts" where the statute of limitations has expired; establish a new debt "substantiation" requirement so that consumers can request information to avoid paying what they do not owe; and address other widespread abuses in the debt collection industry. (New York Daily News, “State will unveil new regulations on debt collectors, December 2014.) ï‚· Recovered $1 Billion in Unpaid Life Insurance Benefits for Consumers. In 2012, NYDFS launched an investigation that uncovered many insurance companies regularly received a list of recent deaths from the Social Security Administration, but were not using that list to determine if a policy holder had died. That means that if a family member did not know there was a life insurance policy or simply forgot to file a claim to the insurance company, the policy went unpaid. As a result, thousands of families did not receive life insurance benefits to which they were entitled. Working with those insurers, NYDFS helped recover more than $1 billion in unpaid life insurance benefits for consumers stuck on the books of insurers, including nearly $400 million for New Yorkers. (Associated Press, N.Y. find $1.1B in Unpaid Life Insurance Nationwide, July 2013) ï‚· Reforming “Force-Placed” Home Insurance Practices That Pushed Borrowers over the Foreclosure Cliff. NYDFS helped reform and clean up a little-known area of the financial industry – rife with kickbacks and consumer abuses – called force-placed insurance, which stuck already struggling borrowers with inflated home insurance costs, threatening to push them over the foreclosure cliff. (New York Times, “New York Investigates Home Insurance Payments to Banks,” May 2012.) ï‚· Stopping Surprise, Out-of-Network Medical Bills That Slam Consumers. NYDFS helped push for passage of legislation in the 2014-15 state budget that Governor Cuomo proposed to protect consumers from surprise, out-of-network medical bills. (New York Times, New York Curbs Medical Bills Containing Surprises, March 2014.) ï‚· Reforming Inflated Title Insurance Costs. NYDFS conducted an extensive investigation into the title insurance industry, which was sticking consumers with the bill for lavish entertainment expenses and other inflated costs. That investigation led to reforms that will help provide DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 4
9) significant savings to homeowners – in some cases, as much as 60 percent on their title insurance bill. (See New York Post, Cuomo plan would slash title fees by up to 60 percent, January 2014.) ï‚· Helping New Yorkers Recover after Natural Disasters. NYDFS has helped consumers recover and deal with their insurance companies and other financial institutions in the wake of natural disasters, such as Superstorm Sandy and Irene. Governor Cuomo has deployed DFS Mobile Command Centers to more than 100 locations throughout New York in the aftermath of major disasters, as well as taken a number of steps through the Department to help speed up relief payments owed to affected New Yorkers from banks and insurers. (See New York Daily News, State: 10 slow banks holding onto millions in Sandy relief funds, March 2013.) ï‚· An Innovative Use of the Federal Dodd-Frank Law to Protect New York Consumers. In 2014, NYDFS brought a lawsuit against Condor Capital Corporation, a subprime auto lender based in Long Island, after a Department investigation uncovered that the company deceptively retained millions of dollars owed to vulnerable borrowers and overcharged them for interest in violation of the Truth in Lending Act. The lawsuit against Condor (Lawsky v. Condor) was the first legal action initiated by a state regulator under section 1042 of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act, which empowers state regulators to bring civil actions in federal court for violations of Dodd-Frank’s consumer protection requirements. After the lawsuit, Condor agreed to make full restitution plus nine percent interest to all aggrieved customers nationwide (an estimated $8-9 million), pay a $3 million penalty, and admit violations of New York and federal law. (See, New York Times, New York Financial Regulator Uses Dodd-Frank to Sue Auto Lender, April 2014) ADDRESSING NEW FINANCIAL PRODUCTS AND RISKS ï‚· Helping Strengthen Bank Cyber Hacking Defenses. NYDFS has been an international leader in sounding the alarm on the threat cyber hacking poses to consumers and financial markets. In response to those risks, NYDFS has undertaken a number of actions to help propel banks and insurance companies to strengthen their cyber defenses, including targeted examinations and proposing new regulations requiring stronger cyber security preparedness. (See, UK Guardian, “US regulator raises alarm for 'Armageddon-type' cyber attack,” September 2014; Financial Times, “NY bank regulator steps up online security demands,” December 2014.) ï‚· Blowing the Whistle on “Shadow Insurance.” In 2012, NYDFS commenced a multi-year investigation into “Shadow Insurance” — a little-known loophole putting taxpayers and policyholders at greater risk. Insurance companies use shadow insurance to shift blocks of insurance policy claims to special entities — often in states outside where the companies are based, or else offshore (e.g., the Cayman Islands) — in order to take advantage of looser reserve and regulatory requirements. Reserves are funds that insurers set aside to pay policyholder claims. This financial alchemy, however, does not actually transfer the risk for those insurance policies off the parent company’s books because, in many instances, the parent company is ultimately still on the hook for paying claims if the shell company’s weaker DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 5
10) reserves are exhausted through a “parental guarantee.” NYDFS’ investigation uncovered and exposed that New York-based insurers and their affiliates are on the hook for at least $48 billion in hidden ‘shadow insurance’ transactions through shell companies in other states and offshore. What’s worse, many of these companies are using this scheme to avoid billions of dollars in taxes. (New York Times, “Insurers Inflating Their Books, New York Regulator Says, June 2013; New York Times, Life Insurers Use State Laws to Avoid as Much as $100 Billion in U.S. Taxes, December 2014.) ï‚· Virtual Currency Regulation. In 2013, NYDFS launched an extensive inquiry into the appropriate regulatory guidelines for the virtual currency industry, including public hearings that the Department held in January 2014. Using the information gathered during that inquiry, NYDFS proposed a first-in-the nation, comprehensive regulatory framework for firms dealing in virtual currency, including Bitcoin. The regulatory framework contains key consumer protection, anti-money laundering compliance, and cyber security rules tailored for virtual currency firms. (See Forbes, “New York's Financial Regulator, Benjamin Lawsky, Maintains Lead on Bitcoin Regulation,” July 2014.) ï‚· Strengthening Retirement Protections by Cracking Down on Private Equity Companies. As part of its regulatory work, NYDFS uncovered and highlighted a spike in private equity firms moving into the annuity business. This trend raised concerns since private equity firms typically have a more short-term oriented business model than traditional insurers, and the annuity business is focused on ensuring long-term security for policyholders. As such, NYDFS reached agreements with a number of the largest private equity firms involved in the annuity business requiring those firms to put in place a set of heightened policyholder protections. These policyholder protections include heightened capital standards; the establishment of a separate, additional “backstop” trust account dedicated to further safeguarding policyholder claims; enhanced regulatory scrutiny of investments, operations, dividends, and reinsurance; and other strengthened disclosure and transparency requirements. (Huffington Post, Ben Lawsky Weighs Crackdown on Private Equity Firms, May 2013.) DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 6
11) SUMMARY OF MAJOR ENFORCEMENT ACTIONS SINCE AGENCY’S INCEPTION Date Company Misconduct Monetary Penalty Notable Terms 4/23/2015 Deutsche Bank (Germany's Largest Bank) $600,000,000 Manipulation of Benchmark Interest Rates, Including LIBOR Bank moves to terminate and ban multiple executives who engaged in misconduct; installs independent monitor 3/12/2015 Commerzbank (Germany's 2nd Largest Bank) $610,000,000 Sanctions/ Antiâ€Money Laundering Compliance (Iran, Sudan, & Other Sanctioned Clients) Bank moves to terminate multiple executives who engaged in misconduct, including the individual serving as the head of regional compliance for the New York branch during relevant period; installs independent monitor 3/11/2015 MoneyMutual (Payday Loan "Lead Generator") Marketing Payday Loans in Excess of NY's Interest Rate Caps $2,100,000 First successful enforcement action nationwide against a payday loan "lead generator;" Montel Williams withdraws endorsement of NY payday loans 12/22/2014 Bank Leumi (Israel's Largest Bank) Facilitating Tax Evasion $130,000,000 Bank moves to terminate three individual senior employees; ban Chief Administrative Officer from compliance activities; install monitor 12/22/2014 Ocwen (Largest Subprime Mortgage Servicer in the U.S.) Mortgage Misconduct $150,000,000 Chairman of Ocwen and related companies steps down; company appoints two independent board members; $10,000 in restitution for each foreclosed New York borrower; access to loan files for all borrowers; continued ban on acquiring mortgage servicing rights; extend monitorship for three years 12/19/2014 Condor Capital (Subprime Auto Lender) Consumer Abuses in Subprime Auto Lending $3,000,000 First state regulator to bring federal suit under new consumer protection authority provided in Doddâ€Frank; obtained $8â€9 million in restitution for abused consumers; company surrenders license and liquidates DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 7
12) Date Company 11/18/2014 Bank of Tokyo Mitsubishi II (Japan's Largest Bank) Misconduct Monetary Penalty Deceived NYDFS on $315,000,000 Antiâ€Money Laundering Consulting Report regarding Iran/Sudan/ Myanmar Transactions Notable Terms The additional $315 million penalty was imposed after an original $250 million penalty from June 2013, after NYDFS discovered the bank deceived the Department during the previous settlement negotiations (bringing the total monetary penalty to $565 million). Bank terminates a senior employee and NYDFS bans two additional senior employees from conducting business with New York banks. Independent monitor's term extended an additional 18 months 10/31/2014 AIG $35,000,000 Unlicensed insurance activity; intentional misrepresentations to regulators The $35 million penalty is in addition to the $50 million penalty previously imposed on MetLife â€â€ the company to which AIG sold the subsidiaries involved in the misconduct 8/19/2014 Standard Violations of 2012 Chartered Bank II Consent Order Regarding Anti†money Laundering Compliance $300,000,000 The additional $300 million penalty was imposed after an original $340 million penalty in August 2012, after NYDFS discovered the Bank violated its consent order (bringing the total monetary penalty to $640 million). The Bank was also required to suspend dollar clearing through its New York Branch for highâ€risk retail business clients at its SCB Hong Kong subsidiary; exit highâ€risk client relationships within certain business lines at its branches in the United Arab Emirates; and not accept new dollarâ€clearing clients or accounts across its operations without prior approval from NYDFS. The term of NYDFS' independent monitor was also extended two years. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 8
13) Date Company Misconduct Monetary Penalty Notable Terms 8/18/2014 Pricewaterhouse Coopers("Big Four" Auditing & Consulting Firm) Whitewashing Report to Regulators on Money Laundering at Bank of Tokyo Mitsubishi $25,000,000 PwC Regulatory Advisory Services unit was banned from regulatory consulting work at NYDFSâ€regulated institutions for 24 months; PwC claws back compensation for partner involved in the engagement and implements new code of conduct on consulting independence 6/30/2014 BNP Paribas (France's Largest Bank) Sanctions/ Antiâ€Money Laundering Compliance (Sudan; Iran, Cuba) $2,243,400,000 13 senior employees, including Chief Operating Officer, terminated or separated from Bank; suspend U.S. dollarâ€clearing operations through its New York Branch or its other U.S. affiliates for one year at BNPP business lines on which the misconduct centered; extend independent monitor's term an additional two years 5/19/2014 Credit Suisse Facilitating Tax Evasion $715,000,000 Terminate three senior employees involved in the misconduct; install independent monitor at the Bank for up to two years 3/31/2014 MetLife Unlicensed Insurance Activity $50,000,000 NYDFS later imposed an additional $35 million fine on AIG (the company that sold MetLife the subsidiaries involved in this misconduct) 3/17/2014 AXA Equitable Violating Consumer $20,000,000 Protection Laws on Annuity Products Largest insuranceâ€related fine in Department history for Insurance Law consumer protection violations $50,000,000 Sanctions/ Antiâ€Money Laundering Compliance (Iran, Sudan, & Other Sanctioned Clients) Bank required to terminate four senior employees, including RBS’s Head of Global Banking Services for Asia, Middle East and Africa, and Head of the Money Laundering Prevention Unit for Corporate Markets 12/11/2014 RBS DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 9
14) Date Company Misconduct Monetary Penalty Notable Terms 6/20/2013 Bank of Tokyo Mitsubishi (Japan's Largest Bank) Sanctions/ Antiâ€Money Laundering Compliance (Iran, Sudan, & Myanmar) $250,000,000 Bank later penalized an additional $315 million in November 2014 for deceiving the Department during the course of settlement negotiations 6/18/2013 Deloitte $10,000,000 Whitewashing Report to Regulators on Anti†money Laundering Compliance at Standard Chartered Bank 5/30/2013 American Modern; Chubb, Fidelity and Deposit Company of Maryland, FinSecure Forceâ€placed Insurance Kickbacks; Insurance Law Violations $1,000,000 Extended NYDFS forceâ€placed insurance reforms banning kickbacks and other consumer abuses to 100 percent of the New York market 4/18/2013 QBE (2nd Largest Forceâ€placed Insurer in the U.S.) Forceâ€placed Insurance Kickbacks; Insurance Law Violations $10,000,000 Company implements NYDFS force†placed insurance reforms banning kickbacks and other consumer abuses 3/21/2013 Assurant (Largest Force†placed Insurer in the Country) Forceâ€placed Insurance Kickbacks; Insurance Law Violations $14,000,000 Company implements NYDFS force†placed insurance reforms banning kickbacks and other consumer abuses 8/14/2012 Standard Chartered Bank $340,000,000 Sanctions/ Antiâ€Money Laundering Compliance (Iran & Other Sanctioned Clients) First successful enforcement action in the country against a consultant by a bank regulator. Deloitte banned from regulatory consulting work at NYDFSâ€regulated institutions for 12 months; implements new code of conduct on consulting independence Bank subsequently paid an additional $300 million penalty in August 2014 for violating the August 2012 consent order DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 10
15) INSURANCE DIVISION OVERVIEW Property Bureau The Property Bureau supervises more than 882 regulated entities, writing net premiums totaling more than $369 billion. The Property Bureau oversees the financial condition and market conduct of property and casualty insurance companies in order to monitor the financial solvency of licensees and to maintain an equitable marketplace for policyholders. The Property Bureau’s Financial Section conducts examinations and analyses, which includes reviewing and monitoring the financial condition of regulated entities; reviewing mergers, acquisitions and transactions within holding company systems; reviewing applications for licensing of domestic and foreign insurers; reviewing applications for accreditation of foreign and alien reinsurers; reviewing applications to qualify as a certified reinsurer; and reviewing applications for registration as a service contract provider. The Property Bureau Market Section reviews policy forms and rate filings for all lines of business, including workers’ compensation, private passenger and public automobile and medical malpractice insurance rates. In addition, the Bureau oversees the American Arbitration Association’s (AAA) administration of conciliation and arbitration of no-fault auto insurance claims disputes and monitors the excess and surplus lines insurance market, as well as risk retention groups and purchasing groups organized pursuant to the Federal Risk Retention Act. The Bureau conducts investigations of property and casualty insurers' underwriting, rating and claims practices for compliance with New York statutes and Department Regulations. The findings of these investigations may require that the Department take disciplinary action against these insurers. As a result of investigations completed in 2014, New York policyholders and claimants were refunded premiums and interest in excess of $1.8 million. Companies also stipulated to enforcement penalties of $2,845,750. Health Bureau The Health Bureau regulates health insurers with total assets of $38.4 billion and premiums totaling $34.3 billion. The Health Bureau has responsibility for all aspects of health insurance regulation, including the premium rates and policy forms; legal aspects of health insurance, including compliance, drafting regulations and legislation; and reviewing discontinuances of health insurance coverage. The Health Bureau also regulates the fiscal solvency of accident and health insurance companies, Article 43 not-for-profit health plans, health maintenance organizations (HMOs), municipal cooperative health benefits plans and continuing care retirement communities, including review of financial statements and holding company transactions. The Health Bureau conducts financial and market conduct examinations to ensure compliance with statutory and financial solvency requirements, as well as proper treatment of policyholders. The financial examinations focus on high-risk areas of an entity’s operations and include corporate governance, internal controls, current and prospective risk assessment, and review of material transactions. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 11
16) The Health Bureau also runs the Healthy NY program and the COBRA program which provide insurance coverage to vulnerable small businesses and individuals meeting certain eligibility criteria. In addition, the Health Bureau oversees the Market Stabilization Pools, the Healthy NY Stop Loss Funds and the Direct Payment Stop Loss Funds which are risk adjustment mechanisms for individual, small group and Medicare Supplement coverage. In conjunction with the Department of Health, the Health Bureau also oversees the NYS Medical Indemnity Fund which provides the cost of health care needs of patients with neurological impairments deemed by the courts to be birth-related. In addition, the Bureau is responsible for implementing New York’s landmark out-of-network surprise bill legislation and works closely with the Governor’s Office and the Department of Health on implementing federal health care reform. Life Bureau The Life Bureau supervises more than 637 regulated entities, including 133 licensed life insurance companies with assets of more than $2.9 trillion and premiums of more than $227 billion. The 133 life insurers supervised by the bureau include 79 domiciled in New York and 54 foreign domiciled insurers. In addition, the bureau supervises: 36 fraternal benefit societies; 12 retirement systems, including four private pension funds and eight governmental systems; nine governmental variable supplements funds; 358 charitable annuity funds; 22 employee welfare funds; 30 life settlement providers; 28 accredited reinsurers and nine certified reinsurers. The Life Bureau regulates financial condition through: the establishment and application of financial standards (risk-based capital, reserves, accounting, etc.); the periodic examination of insurance companies’ financial activities; the evaluation of reserve adequacy and liquidity and other risks; the review of life products for self-support and potentially excessive risk; and the analysis of financial statements and actuarial reports and opinions submitted by regulated entities. Such Bureau processes are performed to verify that statutory and regulatory financial standards are met and to ensure that insurers can meet their financial and contractual obligations. The Life Bureau regulates market conduct through: the establishment of market conduct standards (product provisions, replacements, claims practices, etc.); the periodic examination of insurance companies’ sales and marketing practices and treatment of policyholders; the investigation of specific or targeted market activities; and the analysis of market data. These processes are performed to: ensure compliance with statutory and regulatory requirements; ensure that policyholders are treated fairly and equitably by insurers in accordance with prescribed standards of conduct; and protect the marketplace by preventing and/or limiting practices that constitute unfair trade practices or unfair methods of competition. The Life Bureau reviews and approves life insurance policies, annuity contracts, funding agreements, and all other agreements and policy forms relating thereto submitted by authorized life insurers and other regulated entities for sale in New York to individual or group consumers for compliance with applicable laws, rules and regulations. Legal and actuarial reviews are performed to ensure that New York consumers receive the protection afforded by New York law and regulations and to ensure that such consumers are treated in a fair and equitable manner by authorized life insurers and other regulated entities. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 12
17) The Life Bureau regulates the corporate conduct of authorized insurers through: the establishment of corporate standards (corporate governance, holding company, licensing requirements, etc.); the enforcement of statutory and regulatory corporate governance standards; and the review and approval of activities including licensing, corporate reorganizations, mergers, acquisitions, demutualization and holding company transactions. In so doing, the Bureau verifies that statutory and regulatory requirements are met; ensures the prudent conduct of insurers; and protects policyholder interests. BANKING DIVISION OVERVIEW Community and Regional Banks Community and Regional Banks (CRB) is responsible for the prudential regulation of community and regional banks, credit unions, and other depository institutions through annual and periodic target examinations and continuous supervision. CRB staff review the compliance of the supervised institutions with applicable New York State and Federal laws and regulations. CRB partners with the FDIC, the Federal Reserve Bank of New York (FRB), and the National Credit Union Administration (NCUA) in joint supervision. In 2014, CRB had supervisory oversight of a total of 86 banks and savings institutions, including 54 commercial banks, 22 savings banks, 8 limited-purpose commercial banks and 2 savings and loan associations. CRB also provides regulatory supervision for 20 credit unions with total assets ranging from $1 million to $1.8 billion, limited purpose trust companies, charitable foundations, bank holding companies, and three New York State regulated corporations. The aggregate assets of institutions supervised by CRB are more than $264 billion. During 2014, the economic environment continued to improve. No CRB institutions were closed during the year. Foreign and Wholesale Banks During 2014, Foreign and Wholesale Banks (FWB) was active in the areas of recovery and resolution planning of Foreign Banking Organization branches and agencies. The purpose of recovery and resolution planning is to “end Too-Big-To-Fail” by developing regulatory tools and establishing regulatory cooperation necessary to resolve a global systemically important bank (“G-SIB”) without recourse to taxpayer funds and without imperiling the orderly functioning of financial markets. The Department participated in the several crisis management group meetings, which are multilateral meetings among regulators and G-SIBs on recovery and resolution planning. Additionally, it maintained active dialogue with fellow US and foreign regulators and hosted a meeting with representatives of the Canadian Deposit Insurance Corporation on resolution planning. On February 18, 2014, the Department submitted a comment letter to the Federal Deposit Insurance Corporation regarding its proposed single point of entry strategy for the resolution of systemically important financial institutions. The letter concurred with the FDIC’s focus on developing a SPOE strategy to carry out the resolution of a G-SIB and classed the FDIC’s work in this regard as an important contribution to ending “Too Big To Fail.” The letter advocated that, in order to be workable, a global resolution strategy be structured to accommodate the supervisory concerns of host country regulators who would likely engage their supervisory authority in the period prior to a resolution to protect the interests of domestic creditors and depositors and highlighted practical challenges that a host regulator may have to consider when a SPOE resolution strategy is proposed. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 13
18) Finally, DFS put this theory into practice, when one of our institutions, Banco Espirito Santo, was resolved by its home authority. On August 4th, 2014, the Portuguese authorities announced the going concern resolution of Banco Espirito Santo, the country’s second largest lender. The mechanism by which this was accomplished was a bridge bank, a structure into which the “good assets” of the bank were placed, creating a new legal entity. The equity and certain long term debt remained behind in a “bad bank,” forcing the former owners and certain subordinated creditors to take losses and the new entity to recapitalize using the resolution fund provided by industry. Legally, placing an institution into a bridge structure in this manner creates an entirely new legal entity and requires an entirely new license. DFS worked closely with our Federal regulatory partners, the Portuguese authorities and the bank in the period prior to the resolution as well as over the weekend as the decision to resolve the bank was taken. We were able to protect the interests of New York creditors and issue a license to the successor bank’s New York branch in time to allow it to open normally for business that Monday, ensuring the new bank’s ability to continue to operate without disrupting the New York financial system or the financial system in its home market. Licensed Financial Services The Licensed Financial Services Division (LFS) supervises budget planners, check cashers, licensed lenders, money transmitters, premium finance agencies, and sales finance companies. At year-end 2014, the Department had regulatory oversight of 42 budget planners, 128 check cashers, 19 licensed lenders, 86 money transmitters, 51 premium finance agencies, and 104 sales finance companies. Improvement in economic conditions continued in 2014, and with the exception of check cashers our licensees remained stable in numbers. Check cashers declined due to compression of margins and merger and acquisition activity favoring larger operators. As the number of check casher locations declined by 21%, services to the non-banked community most likely have experienced some negative impact. CAPITAL MARKETS DIVISION OVERVIEW The Capital Markets Division provides the Department's expertise in capital markets (bonds, equities, credit, derivatives, commodities), Enterprise Risk Management, financial analysis, IT, internal controls and audit, research, fiduciary controls, regulatory accounting, Bank Secrecy Act, anti-money laundering and new financial products. Capital Markets works with all the other Divisions in examinations and also conducts target examinations independently. The Division has the primary regulatory responsibility for the New York State based public retirement systems and financial guaranty insurance companies. As the supervisor of New York State’s actuarially funded public retirement systems, Capital Markets continued its examinations of the New York State and Local Employee Retirement System, and the New York City Employee Retirement System, and commenced examination of the New York City Teachers’ Retirement System, the New York City Fire Department Pension Fund, and the New York City Board of Education Retirement System. After investigating acquisitions of life insurance companies with substantial annuity operations, and reaching agreements with investment firms that agreed to put in place heightened policyholder protections as part of acquisitions, the Department drafted revisions to add the protections obtained in those agreements to existing regulations concerning insurance acquisitions. The revised regulation took effect in November 2014. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 14
19) Additionally, Capital Markets, together with the Banking and Insurance Divisions, continues to monitor developments concerning the cyber security practices of regulated companies. Capital Markets is in the process of updating and expanding the scope of examinations it conducts in this fastchanging area. Also, Capital Markets held hearings concerning virtual currency activities in January 2014. Regulations for virtual currency businesses were then drafted and published in July 2014. After receiving and reviewing thousands of public comments on the initial version, a revised regulation was published for public comment in February 2015. REAL ESTATE FINANCE DIVISION OVERVIEW The Real Estate Finance Division is responsible for regulating all real estate and homeowner issues, ranging from mortgage origination and servicing to the foreclosure crisis. In addition, the Division became the clearinghouse for Storm Sandy response operations, assisting homeowners whose lives were upended by the storm. The Division is responsible for the operation and oversight of three operating units: the Mortgage Banking Unit, the Mortgage Assistance Unit, and the Mobile Command Center. Mortgage Banking The Mortgage Banking Unit is responsible for the licensing and supervision of mortgage bankers, mortgage brokers, mortgage loan servicers, and mortgage loan originators conducting business in New York State. At year-end 2014, Mortgage Banking supervised 653 registered mortgage brokers and 177 licensed mortgage bankers operating through 154 and 512 branch offices, respectively. Mortgage Banking also has supervisory authority for 38 registered mortgage loan servicers and 7003 licensed mortgage loan originators. Mortgage Assistance Unit The mission of the Mortgage Assistance Unit (MAU) is to ensure that mortgage bankers, brokers, servicers, and loan originators licensed by the Department are in compliance with applicable laws and regulations in providing financial services to New York residents. To achieve this end, the MAU acts as an intermediary between consumers and financial institutions to resolve requests for assistance and answer inquiries concerning real estate-related financial products. The MAU works together with the Real Estate Finance Division to identify patterns of non-compliance and advise the Superintendent on emerging policy issues. Mobile Command Center The Mobile Command Center (MCC) is a mobile office staffed with DFS specialists who assist homeowners at various stages of pre-foreclosure and foreclosure. The MCC travels statewide to communities hardest hit by the foreclosure crisis to help homeowners obtain mortgage loan modifications or other alternatives short of foreclosure, to take complaints from homeowners who believe that they have been subjected to lender or mortgage servicer abuses, and to provide information to homeowners about other New York State resources that may be available. The MCC also deploys DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 15
20) statewide in response to emergencies and natural disasters to assist victims with homeowner and insurance-related issues. FINANCIAL FRAUDS AND CONSUMER PROTECTION DIVISION The Department’s Financial Frauds and Consumer Protection Division (FFCPD) is responsible for combating insurance and banking fraud, as well as frauds against users of financial products and services including consumers and investors. The Division also conducts performance evaluations in consumer compliance, fair lending and the Community Reinvestment Act. As required by the Financial Services Law, the FFCPD submitted its 2014 Annual Financial Fraud and Consumer Protection Division Report on March 15, 2015. The FFCPD encompasses the Civil Investigation Unit, the Criminal Investigation Unit; the Consumer Assistance Unit; the Consumer Examinations Unit; the Disciplinary Unit; the Student Protection Unit; and the Holocaust Claims Processing Office. Civil Investigations Unit The Civil Investigations Unit includes a staff of attorneys investigating civil financial fraud and misconduct, including violations of the financial services law, other consumer and fair lending laws, the banking law and the insurance law. In 2014, the Civil Investigations Unit conducted investigations in a number of areas including: payday lending (including payday loan lead generators and investors in payday lenders), the student debt relief industry, providers of car sharing services, automobile insurance pricing, variable annuity guaranteed living benefits, global group insurance benefits and the debt collection and debt buying industries. Criminal Investigations Unit The Criminal Investigations Unit (CIU) conducts specialized investigations into criminal conduct involving the financial services industry and works cooperatively with law enforcement and regulatory agencies at the federal, state, county and local levels. The CIU handles banking criminal investigations and insurance frauds. Consumer Assistance Unit The Consumer Assistance Unit (CAU) is responsible for receiving, investigating and resolving consumer complaints involving insurance, banking and other financial issues through informal mediation and negotiation. CAU also includes a unit that investigates complaints against licensed insurance producers. In 2014, the CAU recovered $40,804,348 for 6646 consumers, which included refunds from insurers, reinstatement of lapsed coverage, payment for denied medical claims, and coverage of disaster-related claims that had been previously denied. Within CAU, the Producer Licensing Unit reviews applications, issues licenses and processes renewals for insurance companies as well as licensed producers, including agents, brokers, adjusters, bail bond DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 16
21) agents, life settlement brokers, providers and intermediaries. In 2014, the Producer Licensing Unit issued 172,257 licenses. Disciplinary Unit The Disciplinary Unit oversees the activities of licensed individuals and entities who conduct insurance business in New York State, including producers (agents and brokers), limited lines producers, independent and public adjusters, reinsurance intermediaries, bail bond agents, and viatical settlement brokers. The goals of the Unit are to protect the public and ensure that licensees act in accordance with applicable insurance laws and Department regulations. In collaboration with the Producer Licensing Unit of CAU, the Disciplinary Unit monitors the insurance marketplace to determine if unlicensed activity is occurring and, if necessary, takes steps to ensure that individuals or entities either achieve compliance or cease activities. The attorneys in the Disciplinary Unit bring disciplinary proceedings against licensees for violations of the Insurance Law. When a violation of the Insurance Law is proven, an administrative sanction may be imposed resulting in license revocation or suspension, the denial of pending applications, or monetary penalties imposed with corrective actions to address violations. Consumer Examinations and Community Development Unit The mission of the Consumer Examination Unit (CEU) is to maintain and enhance consumer confidence in New York’s banking system by ensuring that regulated institutions abide by the State’s consumer protection, Fair Lending and Community Reinvestment Act (CRA) regulations; increase consumer access to traditional banking services in under-served communities by effectively administering the Department’s Banking Development District program and other community development initiatives; and harmonize the FFCPD’s examination and enforcement activities with those of the Department’s federal counterparts. Student Protection Unit The mission of the newest unit within FFCPD is to serve as consumer watchdog for New York’s students. SPU is dedicated to investigating potential consumer protection violations and distributing clear information that students and their families can use to help them make informed, long-term financial choices. Holocaust Claims Processing Office The Holocaust Claims Processing Office (HCPO) helps Holocaust victims and their heirs recover assets deposited in banks, unpaid proceeds of insurance policies issued by European insurers, and artworks that were lost, looted or sold under duress. The HCPO accepts claims for Holocaust-era looted assets from anywhere in the world and charges no fees for its services. HCPO has successfully closed the cases of 2,127 individuals in which either an offer was accepted, the claims process to which the claim was submitted issued a final determination, the assets claimed had been previously compensated via a postwar restitution or compensation proceeding. The combined total of offers extended to HCPO claimants for bank, insurance, and other asset losses amounts to $171,720,702 and a total of 94 cultural objects have been restituted. The 2014 HCPO Annual Report is available on our website. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 17
22) LIQUIDATION BUREAU OVERVIEW The New York Liquidation Bureau (NYLB) is the office that carries out the duties of the New York Superintendent in his capacity as receiver of impaired or insolvent insurance companies under New York Insurance Law Article 74. The NYLB receives no funding from the State budget; rather, its costs are paid from the assets of the estates under receivership, as well as expense reimbursements from the New York Property/Casualty Insurance Security Fund and the Public Motor Vehicle Liability Security Fund, established under Insurance Law Article 76, and the Workers’ Compensation Security Fund, established under New York Workers’ Compensation Law Article 6-A, which are paid from assessments on industry. For each estate, the Superintendent is appointed Receiver by the Supreme Court of the State of New York. Thereafter, the Receivership Court approves the actions of the Receiver and, by extension, the NYLB. In 2014, the NYLB distributed $153 million in estate assets to insurance policyholders, claimants and creditors, while also closing over 3,500 outstanding policyholder claims. Acting as an agent of the Receiver, the NYLB maximizes the assets and resolves the liabilities of the estates. The goal is to rehabilitate the companies and put them back into operation or, if that is not possible, liquidate them in order to distribute their assets to policyholders and creditors. In addition, the NYLB performs claims-handling and certain payment functions relating to the Security Funds. The Security Funds pay eligible claims remaining unpaid if an insolvent insurer does not have sufficient assets to meet its obligations to policyholders. As of December 31, 2014, the NYLB was managing forty-one insurance company proceedings. During 2014, two new proceedings were commenced; one was the conversion of a rehabilitation to a liquidation (Professional Liability Insurance Company of America) and the other was a domestic liquidation proceeding (UHAB Mutual Insurance Company). During 2014, fifteen receivership proceedings were completed, of which eight were domestic liquidation proceedings (Capital Mutual Insurance Company, Carriers Casualty Company, Colonial Indemnity Insurance Company, Consolidated Mutual Insurance Company, Galaxy Insurance Company, Home Mutual Insurance Company of Binghamton, N.Y., New York Merchant Bakers Insurance Company, Whiting National Insurance Company); four were ancillary proceedings (Acceleration National Insurance Company, Amwest Surety Insurance Company, Security Indemnity Insurance Company, Shelby Casualty Insurance Company); two were conservation proceedings (Folksam International Insurance Company (UK) Limited and Legion Indemnity Insurance Company); and one rehabilitation proceeding was converted to a domestic liquidation proceeding (Professional Liability Insurance Company of America). DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 18
23) REGULATORY AND LEGISLATIVE ACTIVITIES REGULATIONS Proposed, adopted on an emergency basis, and final adoptions of regulations completed during 2014 can be found on our website. INDUSTRY AND CIRCULAR LETTERS Banking Industry Letters and Insurance Circular Letters can be found on our website. CHANGES TO THE BANKING, INSURANCE AND FINANCIAL SERVICES LAWS Legislative Summaries regarding changes to Insurance, Banking, Financial Services and related laws can be found on our website. LEGISLATIVE RECOMMENDATIONS FOR 2015 ï‚· Out of Network: This bill amends laws to provide several enhanced protections to consumers regarding coverage for out-of-network services. ï‚· Title Agent Licensing: This bill would give DFS authority to issue licenses to title insurance agents. ï‚· No-Fault Reform: This bill amends the Insurance Law to expand the authority of the Superintendent of Financial Services to prohibit a provider of health services from demanding or requesting payment for health services rendered under Article 51 of the Insurance Law if the Superintendent determines that the provider has engaged in certain activities, and to permit the Superintendent to request information from, and examine, a provider of health services. ï‚· Life Guaranty Fund: Article 77 of the Insurance Law sets up a mechanism to provide funds to protect New York residents against a life insurer’s failure to perform its contractual obligations under life insurance policies, annuity contracts, accident and health insurance policies, funding agreements and supplemental contracts. Under current law, the Guaranty Corporation may assess member insurers for the funds necessary to meet the contractual obligations of an insolvent life insurer up to a $558 million cap for the entirety of all such failed insurers. This bill permits the Guaranty Corporation to assess member insurers for amounts above the current cap which will ensure the protection of New Yorkers in the event of a life insurer’s insolvency in the future. ï‚· Bail Bond Reform: This bill amends the Insurance Law to enable DFS to more effectively regulated licensed bail agents. ï‚· Omnibus (Insurance, Banking, Foreclosure): This bill amends the Insurance Law to meet NAIC accreditation standards. The bill also extends various laws in the area of property insurance and foreclosure relief that would otherwise expire during 2014 and 2015. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 19
24) BANKING STATISTICS SUMMARY OF SUPERVISED INSTITUTIONS CONDITION OF ALL PRINCIPAL BANKING AND LENDING FACILITIES IN NEW YORK Number of Institutions Assets Dollars in Thousands New York State NYC Rest of State All Institutions * 723 296 414 3,174,052,359 2,815,806,100 358,246,259 Commercial Banks ** 129 59 70 804,119,815 576,017,502 228,102,313 Savings Banks 42 13 29 108,818,843 37,049,646 71,769,197 Savings & Loan Associations 8 1 7 3,035,606 1,740,528 1,295,078 384 84 300 68,597,057 11,612,257 56,984,800 Safe Deposit Companies 2 0 2 521 0 521 Investment Companies (Article XII) 6 5 1 1,050,159 1,050,156 3 Licensed Lenders *** 19 1 5 95,320 973 94,347 Foreign Branches 118 118 0 2,074,242,713 2,074,242,713 0 Foreign Agencies 15 15 0 114,092,325 114,092,325 0 723 296 414 3,174,052,359 2,815,806,100 358,246,259 State Charter * 253 157 83 2,684,406,553 2,496,721,621 187,684,932 Commercial Banks ** 81 42 39 678,486,993 559,927,445 118,559,548 Savings Banks 22 4 18 80,522,765 16,270,364 64,252,401 Savings and Loan Associations 2 0 2 190,798 0 190,798 Credit Unions 20 4 16 7,558,977 2,971,663 4,587,314 Safe Deposit Companies 2 0 2 521 0 521 Investment Companies (Article XII) 6 5 1 1,050,159 1,050,156 3 Licensed Lenders *** 19 1 5 95,320 973 94,347 Credit Unions New York State NYC Rest of State DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 20
25) Number of Institutions Assets Dollars in Thousands Foreign Branches 87 87 0 1,802,836,839 1,802,836,839 0 Foreign Agencies 14 14 0 113,664,181 113,664,181 0 Federal Charter * 475 138 337 $461,975,691 $302,708,782 $159,266,909 Commercial Banks ** 41 9 32 114,880,877 13,575,200 101,305,677 Savings Banks 20 10 10 12,025,098 5,081,633 6,943,465 Savings and Loan Associations 8 2 6 18,690,352 17,470,062 1,220,290 375 86 289 58,206,631 8,409,154 49,797,477 Safe Deposit Companies 0 0 0 0 0 0 Investment Companies (Article XII) 0 0 0 0 0 0 Licensed Lenders 0 0 0 0 0 0 Foreign Branches 30 30 0 257,744,578 257,744,578 0 Foreign Agencies 1 1 0 428,155 428,155 0 Credit Unions *Dollars may not add to total due to rounding. **Banks, trust companies, limited purpose trust companies, and private bankers. *** 14 licensed institutions located outside New York State DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 21
26) NEW YORK STATE CHARTERED AND LICENSED BANKING, LENDING AND FINANCIAL SERVICES INSTITUTIONS Type of Institution Number of Institutions Number of Domestic Offices Banks Trust Companies Limited Purpose Trust Companies Private Bankers Savings Banks Savings & Loans Credit Unions Safe Deposit Companies Investment Companies (Article XII) Licensed Lenders Foreign Branches Foreign Agencies Holding Companies †One Bank Holding Companies †Multi Bank Mutual Holding Companies Foreign Representative Offices Sales Finance Companies Premium Finance Agencies Check Cashers (including Commercial) Money Transmitters Budget Planners Mortgage Bankers Mortgage Brokers Mortgage Loan Servicers Common Trust Funds NYS Regulated Corporations Charitable Foundations 45 24 11 1 22 2 20 2 6 19 87 14 40 10 1 32 104 51 127 86 42 178 663 36 60 3 3 303 1069 12 9 590 4 52 2 8 67 100 14 40 10 1 32 146 81 559 369 143 512 817 36 60 3 3 Total 1,689 5,042 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 22
27) CONVERSION FROM FEDERAL CHARTER TO STATE CHARTER Name Location Name After Change Effective Date Cohoes City Employees Community Credit Union Cohoes, NY Cohoes City Employees Community Credit Union July 1, 2014 BANK MERGERS AND ACQUISITIONS Name Institution Type Locations Acquiring Bank Effective Date BPD Bank Commercial Bank New York, NY Grupo Popular Investments Corporation March 31, 2014 Berkshire Bank Municipal Bank Commercial Bank Albany, NY Berkshire Bank Riverside Bank Commercial Bank Poughkeepsie, NY Salisbury Bank and Trust Company December 5, 2014 Suffolk Trust Company Trust Company Bohemia, NY Beacon Trust Company October 31, 2014 Cohoes City Employees Community Credit Union Credit Union Cohoes, NY Hudson River Community Credit Union June 30, 2014 July 1, 2014 LIQUIDATIONS Name Institution Type Locations The Bank of Nova Scotia Trust Company of New York Limited Purpose Trust Company New York, NY Effective Date 9/26/2014 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 23
28) CONDITION OF SUPERVISED INSTITUTIONS CONDITION OF COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS Assets Cash and Due from Banks Total Securities Loans and Leases Net Premises and Equipment All Other Assets* Total Assets Dollars in Thousands Commercial Banks Adirondack Bank Alden State Bank Alma Bank Alpine Capital Bank Amerasia Bank American Community Bank Bank of Akron Bank of Cattaraugus Bank of Holland Berkshire Bank Municipal Bank BPD Bank Catskill Hudson Bank Cattaraugus County Bank Citizens Bank of Cape Vincent Country Bank Emigrant Mercantile Bank Empire State Bank First American International Bank Flushing Bank Genesee Regional Bank Global Bank Gold Coast Bank Greene County Commercial Bank Hanover Community Bank Interaudi Bank Federal Funds Sold and Repos $12,824 3,605 138,603 62,574 23,941 19,377 6,201 2,623 5,641 11,847 3,236 8,399 12,661 4,157 18,665 3,637 4,298 64,171 33,083 23,416 9,152 28,067 1,626 13,915 547,348 $191,224 66,277 56,734 31,533 9,299 27,377 49,527 4,886 18,588 27,516 0 180,043 48,619 17,516 170,643 0 19,953 93,545 980,220 117,708 9,233 47,860 188,260 23 352,406 $1,221 558 144 0 20,000 8,600 0 0 52 16,709 0 0 3,000 4,500 0 0 0 0 0 0 0 858 0 7,293 0 $410,048 168,422 730,040 137,847 311,922 106,410 184,851 7,776 60,591 0 0 195,843 109,532 30,082 313,609 0 119,234 354,637 3,402,827 231,256 98,157 162,801 0 95,903 537,208 $6,210 1,848 9,819 785 7,786 1,225 4,301 311 2,593 0 0 3,026 6,157 1,079 568 0 2,285 17,507 20,356 778 174 1,944 0 3,357 3,622 $22,143 10,108 14,688 1,680 6,443 8,697 9,500 652 1,576 114 1,450 8,749 9,509 785 11,485 13 3,308 21,635 288,697 4,661 2,939 2,606 727 481 12,115 $643,670 250,818 950,028 234,419 379,391 171,686 254,380 16,248 89,041 56,186 4,686 396,060 189,478 58,119 514,970 3,650 149,078 551,495 4,725,183 377,819 119,655 244,136 190,613 120,972 1,452,699 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 24
29) COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS Assets Jeff Bank Mahopac Bank New York Commercial Bank NewBank Pathfinder Commercial Bank PCSB Commercial Bank Pioneer Commercial Bank Riverside Bank Savoy Bank Shinhan Bank America Signature Bank Spring Bank State Bank of Chittenango The Berkshire Bank The Westchester Bank Tioga State Bank United International Bank United Orient Bank USNY Bank Victory State Bank Woori America Bank WSB Municipal Bank Trust Companies Amalgamated Bank Banco Popular North America Bank Leumi USA Bank of Millbrook Bank of Richmondville Bank of Utica Chemung Canal Trust Company Deutsche Bank Trust Company Americas Cash and Due from Banks Total Securities Federal Funds Sold and Repos Loans and Leases Net Premises and Equipment All Other Assets* 19,621 13,071 190,300 54,745 2,486 4,131 11,366 9,208 18,834 100,387 237,929 2,841 31 92,586 46,459 6,331 38,129 14,021 14,913 67,633 169,054 11,749 110,325 271,177 874,095 294 57,694 29,905 48,441 20,385 6,648 113,248 7,740,345 13,242 184,228 334,625 42,939 111,148 15,368 2,846 5,414 154,663 100,519 49,128 0 0 1,564 0 0 154 17 208 0 0 0 0 0 0 2,683 0 0 1,000 0 456 0 0 269,132 634,747 2,245,566 120,757 0 0 0 184,085 74,453 737,119 13,805,159 79,029 0 309,184 320,134 256,283 117,582 72,668 154,496 71,987 857,532 0 3,682 16,021 25,648 1,160 0 0 0 1,178 519 10,134 31,467 498 0 2,797 2,712 4,760 1,308 94 1,742 1,893 4,316 0 27,044 55,202 347,312 5,393 1,204 85 103 6,279 500 24,094 561,763 3,380 2,624 27,524 11,577 16,703 4,279 1,592 3,284 2,934 24,995 717 192,622 211,067 542,678 18,125 7,446 6,296 52,633 18,979,000 1,450,709 2,042,213 675,834 86,212 35,699 883,693 351,090 14,000 0 0 0 2,155 293 0 0 15,323,000 1,927,540 5,614,910 3,677,643 98,406 81,970 49,868 983,781 19,838,000 32,870 60,601 35,940 3,228 988 962 30,031 43,000 161,304 826,414 259,035 6,156 3,767 10,711 60,356 1,562,000 Total Assets 429,804 990,218 3,684,485 182,349 61,384 34,275 59,927 221,343 100,954 984,982 22,376,663 98,990 186,883 766,716 426,504 395,225 176,666 92,221 179,849 299,566 1,156,416 61,594 3,765,045 8,755,205 5,191,130 214,282 130,163 951,530 1,477,891 55,759,000 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 25
30) COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS Assets Fiduciary Trust Company International Five Star Bank Goldman Sachs Bank USA Habib American Bank Israel Discount Bank of New York Manufacturers and Traders Trust Metropolitan Commercial Bank Mitsubishi UFJ Trust & Banking Mizuho Bank (USA) Mizuho Trust & Banking Co. USA Orange County Trust Company Solvay Bank Steuben Trust Company The Adirondack Trust Company The Bank of Castile The Bank of New York Mellon Tompkins Trust Company Limited Purpose Trust Companies American Stock Transfer & Trust Anthos Trust Company, LLC Continental Stock Transfer & Trust Genesee Valley Trust Company Law Debenture Trust Company of New Market Street Trust Company New York Life Trust Company OFI Global Trust Company The Bank of Nova Scotia Trust Company The Depository Trust Company The Northern Trust Company of New The Warehouse Trust Company LLC Private Bankers Cash and Due from Banks Total Securities Federal Funds Sold and Repos Loans and Leases Net Premises and Equipment All Other Assets* 501,446 56,592 51,102,000 334,529 695,298 3,142,891 39,965 237,230 427,500 742,198 10,267 10,594 13,913 63,767 17,890 136,341,000 45,610 73,708 859,184 0 33,702 3,864,412 8,461,784 70,391 0 117,948 0 286,442 250,360 161,483 295,855 288,616 94,757,000 561,463 0 0 1,539,000 0 0 231,673 0 0 0 0 0 357 0 0 0 3,282,000 0 196,177 1,810,264 22,775,000 477,975 4,645,563 62,652,518 494,430 0 4,520,722 0 318,660 404,437 239,513 558,696 752,704 30,576,000 901,815 3,639 34,216 0 2,703 34,854 616,937 4,691 550 0 4,889 13,724 7,999 7,181 27,169 14,934 1,191,000 16,882 143,248 161,761 30,200,000 10,712 359,958 9,240,830 25,715 20,601 153,508 35,439 37,909 12,282 16,936 46,117 31,421 30,479,000 76,399 6,871 24 544 5,517 50,466 390 532 0 16,926 2,708,358 1,159 5,676 0 5,087 1,592 0 0 3,545 13,719 7,319 0 0 5,660 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 40,896 0 693 27 10 1,833 0 0 0 87,921 0 0 558,984 23 2,229 11,421 3,094 552 2,748 3,315 752 148,253 306 5,906 Total Assets 918,218 2,922,017 105,616,000 859,621 9,600,085 84,346,633 635,192 258,381 5,219,678 782,526 667,002 686,029 439,026 991,604 1,105,565 296,626,000 1,602,169 606,751 5134 5,058 16,965 53,570 6,320 16,999 10,634 17,678 2,944,532 7,125 11,582 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 26
31) COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS Assets Cash and Due from Banks Total Securities Federal Funds Sold and Repos Brown Brothers Harriman & Co. Total 2,548,763 $221,326,675 616,128 $129,270,515 0 $20,447,495 Loans and Leases Net Premises and Equipment 2,116,615 $193,792,116 All Other Assets* 39,957 $2,565,985 Total Assets 902,452 $77,154,963 6,223,915 $644,557,749 *Includes FDIC Call Report items: other assets, trading assets, goodwill and intangible assets and other real estate owned COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS Liabilities And Equity Total Deposits Federal Funds Bought and Sold Trading Liabilities & Other Borrowed Money Subordinated Notes & Debentures Total Liabilities Total Equity Capital Total Liabilities and Capital All Other Liabilities Dollars in Thousands Adirondack Bank 557,931 20,030 39,164 0 5,628 622,753 53,249 676,002 Alden State Bank 236,871 0 0 0 388 237,259 33,349 270,608 Alma Bank 822,466 0 0 0 2,378 824,844 115,285 940,129 Alpine Capital Bank 246,034 0 0 0 2,741 248,775 38,895 287,670 Amerasia Bank 384,133 0 0 0 2,316 386,449 43,973 430,422 American Community Bank 126,632 0 2,000 0 1,780 130,412 23,362 153,774 4,401,029 0 24,340 90,000 144,168 4,659,537 543,172 5,202,709 229,788 0 8,525 0 3,559 241,872 26,464 268,336 Bank of Cattaraugus 15,206 0 0 0 4 15,210 1,574 16,784 Bank of Holland 83,695 0 0 0 138 83,833 8,118 91,951 Catskill Hudson Bank 379,719 0 0 1,800 529 382,048 30,897 412,945 Cattaraugus County Bank 174,420 0 0 0 4,018 178,438 17,296 195,734 48,356 0 0 0 305 48,661 5,688 54,349 442,363 19,000 20,000 0 2,043 483,406 42,395 525,801 500 0 0 0 50 550 3,069 3,619 150,632 0 19,000 0 758 170,390 15,136 185,526 Commercial Banks Bank Leumi USA Bank of Akron Citizens Bank of Cape Vincent Country Bank Emigrant Mercantile Bank Empire State Bank DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 27
32) Total Deposits Federal Funds Bought and Sold Trading Liabilities & Other Borrowed Money Subordinated Notes & Debentures First American International Bank 436,509 0 61,000 0 Genesee Regional Bank 359,255 0 18,000 Global Bank 105,599 0 Gold Coast Bank 294,901 Greene County Commercial Bank Hanover Community Bank COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS Liabilities And Equity Total Liabilities Total Equity Capital Total Liabilities and Capital 5,356 502,865 72,926 575,791 0 2,593 379,848 35,292 415,140 0 0 343 105,942 17,748 123,690 0 0 0 476 295,377 28,474 323,851 158,450 0 40,061 0 172 198,683 18,758 217,441 145,239 0 0 0 242 145,481 23,540 169,021 1,471,761 10,000 100,000 0 2,804 1,584,565 113,435 1,698,000 Jeff Bank 378,599 0 0 0 6,163 384,762 51,024 435,786 Mahopac Bank 822,437 0 101,600 0 7,503 931,540 116,968 1,048,508 Metropolitan Commercial Bank 618,174 0 63,923 0 5,466 687,563 78,943 766,506 2,635,479 75,000 1,042,252 0 7,812 3,760,543 588,986 4,349,529 164,075 0 0 0 9,588 173,663 27,680 201,343 Pathfinder Commercial Bank 63,476 0 0 0 297 63,773 7,849 71,622 PCSB Commercial Bank 27,250 0 0 0 66 27,316 7,556 34,872 Pioneer Commercial Bank 62,283 0 0 0 104 62,387 5,126 67,513 Savoy Bank 108,931 0 0 0 765 109,696 12,567 122,263 Shinhan Bank America 811,233 0 0 0 12,242 823,475 142,443 965,918 22,621,783 1,535,000 515,163 0 150,456 24,822,402 2,496,238 27,318,640 Spring Bank 102,241 0 0 0 558 102,799 14,435 117,234 State Bank of Chittenango 170,487 0 0 0 11,772 182,259 18,951 201,210 The Berkshire Bank 617,192 30,000 0 0 5,527 652,719 102,665 755,384 The Westchester Bank 437,065 0 28,145 0 1,966 467,176 55,158 522,334 Tioga State Bank 302,920 12,670 28,799 0 3,449 347,838 48,720 396,558 United International Bank 149,647 0 6,429 0 691 156,767 20,246 177,013 Interaudi Bank New York Commercial Bank NewBank Signature Bank All Other Liabilities DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 28
33) Total Deposits Federal Funds Bought and Sold Trading Liabilities & Other Borrowed Money Subordinated Notes & Debentures 84,383 0 2,000 0 USNY Bank 188,436 0 8,402 Victory State Bank 256,760 0 Woori America Bank 1,054,303 WSB Municipal Bank Trust Companies COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS Liabilities And Equity Total Liabilities Total Equity Capital Total Liabilities and Capital 615 86,998 11,333 98,331 0 706 197,544 19,707 217,251 0 0 956 257,716 28,014 285,730 0 0 0 6,936 1,061,239 146,297 1,207,536 72,694 0 0 0 2,927 75,621 6,955 82,576 Amalgamated Bank 2,523,816 119,645 686,468 0 58,607 3,388,536 340,049 3,728,585 Banco Popular North America 3,458,931 321,140 239,529 0 117,287 4,136,887 1,366,684 5,503,571 Bank of Millbrook 187,674 0 0 0 1,757 189,431 22,310 211,741 Bank of Richmondville 112,425 0 1,500 0 741 114,666 15,585 130,251 Bank of Utica 779,300 0 4,000 0 17,612 800,912 180,219 981,131 1,284,215 29,652 53,116 0 19,962 1,386,945 128,483 1,515,428 41,082,000 2,109,000 86,000 0 1,396,000 44,673,000 8,874,000 53,547,000 549 0 653 0 32,772 33,974 196,243 230,217 Five Star Bank 2,457,199 39,504 295,300 0 16,784 2,808,787 256,322 3,065,109 Flushing Bank 3,515,586 116,000 911,721 0 56,358 4,599,665 482,996 5,082,661 73,134,000 6,578,000 8,555,000 2,000,000 6,404,000 96,671,000 21,543,000 118,214,000 819,353 0 25,000 0 7,874 852,227 89,731 941,958 7,787,618 1,021,215 74,327 0 126,302 9,009,462 774,004 9,783,466 74,827,501 1,592,676 5,388,039 1,368,434 1,229,188 84,405,838 11,514,726 95,920,564 63,217 0 0 0 2,821 66,038 221,248 287,286 3,815,694 0 606,860 0 137,810 4,560,364 1,174,943 5,735,307 United Orient Bank Chemung Canal Trust Company Deutsche Bank Trust Company Americas Fiduciary Trust Company International Goldman Sachs Bank USA Habib American Bank Israel Discount Bank of New York Manufacturers and Traders Trust Company Mitsubishi UFJ Trust & Banking Corporation (U.S.A.) Mizuho Bank (USA) All Other Liabilities DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 29
34) Total Deposits Federal Funds Bought and Sold Trading Liabilities & Other Borrowed Money Subordinated Notes & Debentures Mizuho Trust & Banking Co. USA 731,267 0 0 0 Orange County Trust Company 539,174 0 70,000 Solvay Bank 656,588 0 Steuben Trust Company 384,029 The Adirondack Trust Company COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS Liabilities And Equity Total Liabilities Total Equity Capital Total Liabilities and Capital 28,490 759,757 59,625 819,382 0 16,017 625,191 90,398 715,589 23,700 0 4,036 684,324 70,068 754,392 0 38,500 0 5,296 427,825 47,124 474,949 904,293 4,190 0 0 17,770 926,253 107,428 1,033,681 1,028,271 11,313 35,300 0 8,944 1,083,828 87,370 1,171,198 257,479,000 5,645,000 12,723,000 765,000 6,284,000 282,896,000 21,270,000 304,166,000 1,364,965 104,442 59,761 0 37,371 1,566,539 115,714 1,682,253 0 0 20,486 22,635 571,114 593,749 Anthos Trust Company, LLC Continental Stock Transfer & Trust Company 0 0 0 0 5,156 5,156 0 0 0 0 1,444 1,444 3,480 4,924 Genesee Valley Trust Company Law Debenture Trust Company of New York 0 0 0 0 1,534 1,534 16,178 17,712 0 0 0 0 3,289 3,289 50,193 53,482 Market Street Trust Company 0 0 0 1,771 2,337 3,992 6,329 New York Life Trust Company 0 0 0 0 2,924 2,924 14,197 17,121 OFI Global Trust Company The Northern Trust Company of New York 0 0 0 0 2,807 2,807 14,910 17,717 0 0 0 0 7,117 7,117 0 0 0 0 The Bank of Castile The Bank of New York Mellon Tompkins Trust Company Limited Purpose Trust Companies American Stock Transfer & Trust Company, LLC The Depository Trust Company The Warehouse Trust Company LLC Private Bankers 2,149 566 51,126 0 All Other Liabilities 0 0 0 0 0 2,280,990 2,332,116 446,912 2,779,028 0 0 960 960 10,265 11,225 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 30
35) COMMERCIAL BANKS, TRUSTS AND PRIVATE BANKERS Liabilities And Equity Brown Brothers Harriman & Co. Total Total Deposits 4,701,750 526,659,752 Trading Liabilities & Other Borrowed Money Federal Funds Bought and Sold 0 19,393,477 Subordinated Notes & Debentures 569,738 32,630,156 All Other Liabilities 0 4,225,234 Total Equity Capital Total Liabilities Total Liabilities and Capital 518,627 5,790,115 804,632 6,594,747 19,281,985 602,190,604 76,296,372 678,486,976 All Other Assets* Total Assets CONDITION OF SAVINGS BANKS AND THRIFTS SAVINGS BANKS AND THRIFTS Assets Savings Banks Apple Bank for Savings CMS Bank Cross County Savings Bank Elmira Savings Bank Emigrant Bank Fairport Savings Bank First Central Savings Bank Fulton Savings Bank New York Community Bank NorthEast Community Bank PathFinder Bank Pioneer Savings Bank Putnam County Savings Bank Rhinebeck Bank Ridgewood Savings Bank Rondout Savings Bank Sawyer Savings Bank The Dime Svgs. Bank of Williamsburgh The North Country Savings Bank The Oneida Savings Bank Total Securities & Trading Assets Cash and Due from Banks 747,736 2,412 46,346 7,960 118,036 4,119 44,606 49,266 242,366 24,237 11,167 38,309 72,835 30,573 114,536 9,969 5,705 78,436 16,289 18,923 Federal Funds Sold and Repos 1,379,251 39,302 63,604 73,013 1,628,764 36,470 114,538 143,387 6,234,207 6,635 128,583 71,340 386,818 75,218 2,126,425 39,005 70,921 31,350 3,625 309,628 Loans and Leases Net Dollars in Thousands 0 9,023,477 0 218,891 0 258,958 606 414,235 0 4,136,704 0 191,791 0 301,445 1,229 158,659 253,657 32,712,135 0 421,966 0 382,209 2,362 654,109 4,242 503,273 0 485,588 0 2,574,456 0 236,340 0 115,964 0 4,100,747 100 195,222 12,014 367,911 Premises & Equipment 33,318 2,522 7,147 9,475 82,114 2,836 935 823 292,357 11,718 13,200 17,145 4,931 18,344 13,361 6,983 3,810 25,065 5,449 20,392 475,589 4,359 12,988 40,743 347,735 7,731 35,720 19,123 4,547,147 39,413 25,475 37,709 18,949 41,259 258,627 9,117 4,664 244,965 18,678 69,000 11,659,371 267,486 389,043 546,032 6,313,353 242,947 497,244 372,487 44,281,869 503,969 560,634 820,974 991,048 650,982 5,087,405 301,414 201,064 4,480,563 239,363 797,868 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 31
36) Ulster Savings Bank Watertown Savings Bank Savings & Loans Gouverneur Savings and Loan Association Medina Savings and Loan Association Total 20,937 44,926 2,447 12,533 $1,764,669 128,792 110,189 17,312 10,140 $13,228,517 0 0 0 885 $275,095 533,916 344,745 109,467 23,950 $58,466,158 21,910 16,707 2,644 756 $613,942 54,503 41,024 9,965 699 $6,365,182 760,058 557,591 141,835 48,963 $80,713,563 *Includes FDIC Call Report items: other assets, trading assets, goodwill and intangible assets and other real estate owned CONDITION OF SAVINGS BANKS AND THRIFTS SAVINGS BANKS AND THRIFTS Liabilities And Equity Total Deposits Federal Funds Bought & Repos Other All Other Borrowed Liabilities Money Dollars in Thousands Total Liabilities Total Equity Capital Total Liabilities and Capital Savings Banks Apple Bank for Savings 10,521,610 0 24,791 134,129 10,680,530 978,841 11,659,371 CMS Bank 214,705 0 28,367 2,249 245,321 22,165 267,486 Cross County Savings Bank 344,247 0 0 2,637 346,884 42,159 389,043 4,536,203 72,000 590,000 75,758 5,273,961 1,039,392 6,313,353 Fairport Savings Bank 175,307 0 47,925 2,108 225,340 17,607 242,947 First Central Savings Bank 430,767 0 5,000 3,290 439,057 58,187 497,244 Fulton Savings Bank 234,610 0 38,000 10,086 282,696 89,791 372,487 New York Community Bank 25,863,066 3,610,000 9,153,668 204,524 38,831,258 5,450,611 44,281,869 NorthEast Community Bank 377,435 0 33,647 3,952 415,034 88,935 503,969 PathFinder Bank 428,584 0 66,100 4,228 498,912 61,722 560,634 Pioneer Savings Bank 699,104 3,231 15,816 8,014 726,165 94,809 820,974 Putnam County Savings Bank 855,052 0 20,000 3,641 878,693 112,355 991,048 Rhinebeck Bank 582,189 0 7,500 8,198 597,887 53,094 650,981 3,923,752 0 413,399 84,318 4,421,469 665,936 5,087,405 Rondout Savings Bank 254,360 0 10,721 3,161 268,242 33,172 301,414 Sawyer Savings Bank 150,291 0 24,000 3,198 177,489 23,575 201,064 2,809,871 0 1,176,947 39,650 4,026,468 454,095 4,480,563 186,451 0 19,028 1,993 207,472 31,891 239,363 Emigrant Bank Ridgewood Savings Bank The Dime Svgs. Bank of Williamsburgh The North Country Savings Bank DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 32
37) The Oneida Savings Bank 691,504 0 0 11,913 703,417 94,451 797,868 Ulster Savings Bank 629,609 0 29,500 3,979 663,088 96,969 760,057 Watertown Savings Bank 463,294 0 12,300 3,568 479,162 78,429 557,591 Elmira Savings Bank 423,238 26,000 36,000 5,301 490,539 55,493 546,032 Gouverneur Savings and Loan Association 83,716 0 25,550 4,486 113,752 28,083 141,835 Medina Savings and Loan Association 44,865 0 0 231 45,096 3,867 48,963 $54,923,830 $3,711,231 $11,778,259 $624,612 $71,037,932 $9,675,629 $80,713,561 Savings & Loans Total CONDITION OF SAFE DEPOSIT COMPANIES SAFE DEPOSIT COMPANIES Assets Cash and Due from Banks Total Securities Federal Funds Sold and Repos Loans and Leases Net Akron Safe Deposit Company Zurich Depository Corporation* SAFE DEPOSIT COMPANIES Liabilities And Equity Premises Vault and Equipment Investment in Unconsolidate d Subsidiaries Other Assets Total Assets Dollars In Thousands 181 283 0 0 0 56 0 0 521 0 0 0 0 0 0 0 0 0 Key & Box Deposits Unearned Deferred Income Other Borrowed Money Subordinated Acceptances Notes and Outstanding Debentures Akron Safe Deposit Company Zurich Depository Corporation* Customers' Liability on Acceptances All Other Liabilities Total Total Liabilities Equity and Capital Capital Total Liabilities Dollars In Thousands 0 0 0 0 0 0 0 521 521 0 0 0 0 0 0 0 0 0 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 33
38) CONDITION OF CREDIT UNIONS Cash and Due from Banks CREDIT UNIONS Assets Total Investments Loans Held For Sale Branch 6000 NALC Credit Union Buffalo Service Credit Union CFCU Community Credit Union Bank Premises & Equipment NCUSIF Deposit Other Assets Total Assets Dollars In Thousands AmeriCU Credit Union Loans and Leases Net 139,380 1,773 1,715 1,049,471 31,960 10,934 29,118 1,264,351 1,899 3,160 0 2,743 2 82 555 8,441 14,796 13,728 0 18,651 55 391 308 47,929 138,785 152,860 0 592,802 8,290 7,196 9,117 909,050 Directors Choice Credit Union Empire Branch 36 National Association of Letter Carriers Credit Union 272 1,155 0 4,748 0 60 161 6,396 712 1,442 0 2,962 4 45 35 5,200 Empire State Credit Union 566 4,216 0 2,232 5 70 26 7,115 1,256 2,326 0 12,926 659 164 134 17,465 973 14,529 0 7,781 37 199 122 23,641 10,864 14,345 0 146,825 9,807 1,549 2,069 185,459 52 3,130 0 1,325 5 44 54 4,610 Melrose Credit Union 7,956 100,821 0 1,931,820 22,409 15,021 10,903 2,088,930 Montauk Credit Union 5,359 609 158,004 2,473 1,302 1,196 168,943 356,126 237,726 0 1,320,497 17,400 18,402 146,259 2,096,410 439 0 0 369 0 6 0 814 Encompass Niagara Credit Union Erie County Employees Credit Union Hudson River Community Credit Union Jamestown Post Office Employees' Credit Union Municipal Credit Union 0 Newspaper Employees Credit Union Niagara Falls Penn Central Employees Credit Union The Niagara Frontier Federal Employees Credit Union 41 1,624 0 2,068 6 36 20 3,795 242 846 0 1,704 7 24 8 2,831 Nortonâ€Troy Employees Credit Union 552 5,428 0 2,605 7 81 10 8,683 4,320 32,405 0 632,411 11,686 2,455 17,833 701,110 614 4,940 0 2,169 20 61 0 7,804 685,204 597,063 1,715 5,894,113 104,832 58,122 217,928 7,558,977 Progressive Credit Union Yonkers Postal Employees Credit Union Total DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 34
39) CONDITION OF CREDIT UNIONS CREDIT UNIONS Liabilities And Equity AmeriCU Credit Union Branch 6000 NALC Credit Union Buffalo Service Credit Union CFCU Community Credit Union Total Shares and Deposits Federal Funds Bought and Repos Borrowings Plus Interest Payable Subordinated Notes and Debentures All Other Liabilities 1,134,892 0 0 0 12,201 1,147,093 117,258 1,264,351 7,780 0 0 0 4 7,783 658 8,441 42,010 0 0 0 94 42,104 5,825 47,929 786,495 0 0 0 3,388 789,882 119,168 909,050 Total Liabilities Total Equity Capital Total Liabilities and Capital Directors Choice Credit Union Empire Branch 36 National Association of Letter Carriers Credit Union 5,327 0 0 0 1 5,328 1,068 6,396 4,440 0 0 0 6 4,446 754 5,200 Empire State Credit Union 6,643 0 0 0 10 6,654 461 7,115 Encompass Niagara Credit Union 15,609 0 0 0 23 15,636 1,829 17,465 Erie County Employees Credit Union 20,500 0 0 0 119 20,624 3,017 23,641 157,368 0 0 0 2,592 159,960 25,499 185,459 3,961 0 19 0 4 3,984 626 4,610 1,617,337 0 80,000 0 249 1,697,586 391,344 2,088,930 145,679 0 0 0 1,031 146,937 22,006 168,943 1,937,943 0 0 0 50,165 1,988,188 108,222 2,096,410 Hudson River Community Credit Union Jamestown Post Office Employees' Credit Union Melrose Credit Union Montauk Credit Union Municipal Credit Union Newspaper Employees Credit Union Niagara Falls Penn Central Employees Credit Union The Niagara Frontier Federal Employees Credit Union 500 0 0 0 0 499 315 814 3,227 0 32 0 1 3,261 534 3,795 2,378 0 0 0 4 2,381 450 2,831 Nortonâ€Troy Employees Credit Union 7,676 0 0 0 8 7,687 996 8,683 288,677 20,000 127,108 0 15,186 430,970 270,140 701,110 6,428 0 0 0 22 6,451 1,353 7,804 6,194,870 20,000 207,159 0 85,108 6,487,454 1,071,523 7,558,977 Progressive Credit Union Yonkers Postal Employees Credit Union Total DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 35
40) CONDITION OF ARTICLE XII INVESTMENT COMPANIES ARTICLE XII INVESTMENT COMPANIES Assets Cash and Due from Banks Federal Funds Sold & Repos Total Securities Loans and Leases Net 345,932 N/A 6,029 0 0 0 0 600 0 0 0 48,070 0 0 0 1,369 0 0 174,497 6,905 Total 253,224 101,181 ARTICLE XII INVESTMENT COMPANIES Liabilities And Equity Total Deposits Community Building Fund, LLC Fiduciary Investment Corporation French American Banking Corporation Sterling Banking Corporation Western Union Financial Holdings, L.L.C. 30,621 93,676 0 0 46,737 Federal Funds Sold and Repos 0 73,368 549,626 0 3 3 111 0 17,280 64,728 0 552 88,250 165 137,037 0 0 0 0 0 1,369 0 9,004 N/A 5,758 0 33,504 297,396 0 354,936 0 11,898 0 124,152 1,050,159 Other Borrowed Money Due to Affiliates American Express Banking Corp Community Building Fund, LLC Fiduciary Investment Corporation French American Banking Corporation Total Assets Dollars In Thousands American Express Banking Corp Customer's Premises Investment in Liability on & Unconsolidated Other Assets Acceptance Equipment Subsidiaries Subordinated Notes and Debentures All Other Liabilities 0 Total Liabilities Total Equity Capital Total Liabilities and Capital Dollars In Thousands 196,829 0 58,848 0 0 0 0 0 0 0 0 0 0 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sterling Banking Corporation 0 Western Union Financial Holdings, LLC 64,823 Total 261,652 0 58,868 167,261 422,938 126,688 549,626 0 11,894 0 11,914 3 52,814 3 64,728 34,625 0 112,883 292,038 34,625 0 177,706 612,558 102,412 1,369 119,690 300,561 137,037 1,369 297,396 913,119 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 36
41) CONDITION OF LICENSED LENDERS LICENSED LENDERS Assets Applicable to NY Business Loans and Leases Net Advantage Funding Commercial Capital Corp. Cash and Due From Banks Furniture, Fixtures & Equipment Other Assets Total Assets Not Applicable to Total Assets NY Business Dollars in Thousands Total Assets $38,810 $16,793 $364 $3,167 $59,134 $231,938 $291,072 1,008 149 448 82 1,687 8,447 10,134 640,308 70,509 212,390 39,186 962,393 25,617,262 26,579,655 Beneficial New York Inc. 0 50 0 105,844 105,894 0 105,894 Capital Financial Services, Inc. 0 50 0 0 50 31,252 31,302 CarFinance Capital LLC U/A/N CarFinance.com 0 0 33 42 75 10,256 10,331 Household Finance Corporation III 305 50 0 7 362 2,794,210 2,794,572 JCB International Credit Card Co., Ltd. 417 4,601 87 9,158 14,263 54,594 68,857 31,470 41 158 50 31,719 473,527 505,246 1,633,254 7,011 1,469,967 125,974 3,236,206 40,181,972 43,418,178 31,497 1,043 1,288 234 34,062 15,390 49,452 0 102 0 8 110 0 110 189,287 28 3,204 1,311 193,830 4,590,355 4,784,185 179 59 0 518 756 0 756 836,250 156,809 3,308 518,947 1,515,314 30,826,862 32,342,176 Springleaf Financial Services of New York, Inc. 865 603 11 5,527 7, 006 0 7,006 Stones Funding LLC 742 225 0 6 973 0 973 88 197 0 0 285 0 285 5,824 45 10 584 6,463 179,475 185,938 $3,410,304 $258,365 $1,691,268 $810,645 AmeriCredit Consumer Loan Company, Inc. AmeriCredit Financial Services, Inc. Mariner Finance, LLC Mercedesâ€Benz Financial Services USA LLC New City Funding Corporation Omni Financial of New York, Inc. OneMain Financial, Inc. Retail Charge Financial Services Corp. Santander Consumer USA Inc. Sunrise Capital Management, Inc. TMG Financial Services, Inc. Total $6,163,576 $104,995,540 $111,186,122 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 37
42) LICENSED LENDERS Liabilities And Equity Other Borrowed Money All Other Liabilities Total Liabilities Advantage Funding Commercial Capital Corp. Valuation Reserves Capital Stock Surplus Total Liabilities and Capital Dollars in Thousands $111,699 $144,298 $255,997 $0 $35,075 $291,072 637 7,733 8,370 0 1,764 10,134 1,699,922 20,634,484 22,334,406 0 4,245,249 26,579,655 Beneficial New York Inc. 0 0 0 0 105,894 105,894 Capital Financial Services, Inc. 0 826 826 0 30,476 31,302 1,278 5,063 6,341 0 3,990 10,331 0 2,376,629 2,376,629 0 417,943 2,794,572 24,558 34,959 59,517 0 9,340 68,857 (562) 434,279 433,717 0 71,529 505,246 18,178,598 23,281,955 41,460,553 0 1,957,625 43,418,178 8,547 32,359 40,906 0 8,546 49,452 9 0 9 0 101 110 3,553,185 297,516 3,850,701 0 933,484 4,784,185 1 0 1 0 755 756 2,457,478 26,326,349 28,783,827 0 3,558,349 32,342,176 28 109 137 0 6,869 7,005 380 0 380 0 593 973 0 29 29 0 257 285 26,850 145,248 172,098 0 13,840 185,938 $26,062,608 $73,721,836 $99,784,444 $0 $11,401,678 $111,186,122 AmeriCredit Consumer Loan Company, Inc. AmeriCredit Financial Services, Inc. CarFinance Capital LLC U/A/N CarFinance.com Household Finance Corporation III JCB International Credit Card Co., Ltd. Mariner Finance, LLC Mercedesâ€Benz Financial Services USA LLC New City Funding Corporation Omni Financial of New York, Inc. OneMain Financial, Inc. Retail Charge Financial Services Corp. Santander Consumer USA Inc. Springleaf Financial Services of New York, Inc. Stones Funding LLC Sunrise Capital Management, Inc. TMG Financial Services, Inc. Total DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 38
43) INSURANCE COMPANY STATISTICS GENERAL STATISTICS LICENSES ISSUED DURING YEAR 2014 181,381 2013 168,739 10,268 14,456 Public 385 680 Agents Life/Accident and Health 88,043 92,217 Property and Casualty 42,263 32,005 131 40 5 1 164 168 6 5 1,309 8,239 Property and Casualty 9,718 19,100 Excess Line (Regular and Limited) 26,000 1,208 Life Settlement 2,488 130 84 127 General 88 153 Reinsurance Intermediaries 252 29 Service Contract Registrants 167 181 10 Total Adjusters Independent Limited Rental/Wireless Communications Mortgage Guaranty Insurance Bail Bond Limited Lines Brokers Life Consultants Life A list of general insurance license terms of issuance and renewal requirements can be found on our website. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 39
44) CHANGES IN AUTHORIZED INSURERS Life Insurance Companies Name Changes “Aviva Life and Annuity Company of New York” to “Athene Life Insurance Company of New York” “The First Rehabilitation Life Insurance Company of America” to “ShelterPoint Life Insurance Company” “Sun Life Insurance and Annuity Company of New York” to “Delaware Life Insurance Company of New York” “ING Life Insurance and Annuity Company” to “Voya Retirement Insurance and Annuity Company” Merger Agreements Filed Transamerica Advisors Life Insurance Company of New York into Transamerica Financial Life insurance Company Balboa Life Insurance Company of New York into Securian Life Insurance Company Withdrawn MetLife Insurance Company of Connecticut Accident and Health Insurance Companies Incorporated Montefiore Insurance Company, Inc. Healthfirst Insurance Company, Inc. Domestic Company Licensed Crystal Run Health Insurance Company, Inc. Foreign Companies Licensed Tufts Insurance Company, Watertown, MA Sierrra Health and Life Insurance Company, Inc., Las Vegas, NV Name Changes “Freelancers Health Service Corporation, Inc.” to “Health Republic Insurance of New York, Corp.” March 3 July 15 July 21 September 5 July 3 December 24 January 1 March 5 January 6 December 31 July 7 October 28 October 21 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 40
45) Charter Amendments Oxford Health Insurance, Inc. – To recapitalize so that it now has two classes of common stock outstanding. Medco Containment Insurance Company of New York Merger Agreements Filed Preferred Assurance Company, Inc. into MVP Health Services Corp. Property and Casualty Insurance Companies Foreign Companies Licensed Key Risk Insurance Company, Greensboro, NC Triâ€State Insurance Company of Minnesota, Luverne, MN Merchants National Bonding, Inc., Des Moines, IA Bondex Insurance Company, Florham Park, NJ The Gray Casualty & Surety Company, Metairie, LA First Founders Assurance Company, Chester, NJ Mount Vernon Specialty Insurance Company, Wayne, PA Travelers Commercial Casualty Company, Hartford, CT Alien Company Licensed Tokio Millennium Re Ag (U.S. Branch), Stamford, CT Name Changes “HSBC Insurance Company of Delaware” to “Pavonia Insurance Company of Delaware” “BancInsure Inc.” to “Red Rock Insurance Company” “Fidelity National Insurance Company” to “Stillwater Insurance Company” “American Mining Insurance Company, Inc.” to “American Mining Insurance Company” “ACA Insurance Company” to “CSAA Fire & Casualty Insurance Company” “Maiden Reinsurance Company” to “Maiden Reinsurance North America, Inc.” “American Fuji Fire and Marine Insurance Company” to “Ashmere Insurance Company” “Northbrook Indemnity Company” to “Allstate Northbrook Indemnity Company” “Western United Insurance Company” to “CSAA General Insurance Company” August 11 April 16 March 3 February 5 February 5 February 21 August 18 October 20 October 22 December 16 December 16 June 2 February 14 February 25 March 14 March 27 April 15 June 9 June 10 June 27 July 1 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 41
46) “Stonebridge Casualty Insurance Company” to “Transamerica Casualty Insurance Company” “Stonewood National Insurance Company” to “Falls Lake National Insurance Company” “Stonewood General Insurance Company” to “Falls Lake General Insurance Company” “Bituminous Casualty Corporation” to “BITCO General Insurance Corporation” “Bituminous Fire and Marine Insurance Company” to “BITCO National Insurance Company” “United National Casualty Insurance Company” to “CGB Insurance Company” “Pathfinder Insurance Company” to “BlueShore Insurance Company” Redomestications Filed Plaza Insurance Company (from Missouri to Iowa) Discover Property & Casualty Company (from Illinois to Connecticut) St. Paul Protective Insurance Company (from Illinois to Connecticut) American Mining Insurance Company (from Alabama to Iowa) Victoria Automobile Insurance Company (from Indiana to Ohio) ProCentury Insurance Company (from Texas to Michigan) OneBeacon America Insurance Company (from Massachusetts to Pennsylvania) The Employers’ Fire Insurance Company (from Massachusetts to Pennsylvania) Arch Reinsurance Company (from Nebraska to Delaware) Merger Agreements Filed OneBeacon Midwest Insurance Company into OneBeacon America Insurance Company The Northern Assurance Company of America into OneBeacon America Insurance Company The Camden Fire Insurance Association into OneBeacon Insurance Company Houston General Insurance Company into OneBeacon Insurance Company Pavonia Insurance Company of Delaware into SeaBright Insurance Company CNL/Insurance America, Inc. into Securian Casualty Company Withdrawn Alfa Mutual Insurance Company Infinity Safeguard Insurance Company Germantown Insurance Company July 31 October 29 October 29 October 27 October 27 December 10 December 23 January 27 March 5 March 5 March 27 June 13 August 18 September 8 September 8 October 2 March 11 March 11 March 11 March 11 April 30 June 17 April 23 April 24 August 15 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 42
47) Liquidated UHAB Mutual Insurance Company Accredited Reinsurers Name Changes Generali USA Life Reassurance Company to SCOR Global Life USA Reinsurance Company SCOR Global Life Re Insurance Company of Texas to SCOR Global Reinsurance Company of Delaware Redomestications Filed SCOR Global Life USA Reinsurance Company (from Missouri to Delaware) SCOR Global Life Reinsurance Company of Delaware (from Texas to Delaware) Merger Agreement Filed Scottish Re Life Corporation into Scottish Re (U.S.), Inc. Withdrawn Sun Life Assurance Company of Canada (U.S. Branch) The Philadelphia Contributionship for the Insurance of Houses From Loss by Fire UNUM Life Insurance Company of America Genworth Mortgage Reinsurance Corporation American International Overseas Limited Charitable Annuity Societies Permits Issued The Heritage Foundation, Washington, DC Prison Fellowship Ministries Foundation, Lansdowne, VA Northwestern University, Evanston, IL Hillel: The Foundation for Jewish Campus Life, Washington, DC The Gideons International, Nashville, TN The Birthright Israel Foundation, New York, NY December 16 May 19 May 28 May 19 May 28 May 21 March 3 August 15 October 31 November 13 December 24 January 6 January 29 February 11 April 15 May 30 July 14 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 43
48) Rochester General Hospital Foundation, Inc., Rochester, NY The Arthritis Foundation, Inc., Atlanta, GA Population Connection, Washington, DC Girl Scouts of the United States of America, New York, NY The Trustees of the Lawrenceville School, Lawrenceville, NJ The University of Arizona Foundation, Tucson, AZ The Omaha Home for Boys, Omaha, NE Masonic Medical Research Laboratory, Utica, NY Name Change “Billy Graham Evangelistic Association” to “BGEA, MN” Withdrawn Watchtower Bible and Tract Society of New York, Inc. The General Board of Global Ministries of the United Methodist Church Mortgage Guaranty Insurance Companies Name Changes “CMG Mortgage Assurance Company” to “Arch Mortgage Assurance Company” “PMI Mortgage Assurance Co.” to “Arch Mortgage Guaranty Company” Merger Agreements Filed Genworth Home Equity Insurance Corporation into Genworth Residential Mortgage Insurance Corporation of North Carolina Genworth Residential Mortgage Assurance Corporation into Genworth Mortgage Insurance Corporation Financial Guaranty Insurance Companies Merger Agreement Filed Assured Guaranty Mortgage Insurance Company into Assured Guaranty Municipal Corp. Captive Insurance Companies Incorporated July 22 August 14 September 9 October 23 October 24 October 24 November 14 December 4 March 11 June 5 August 14 January 30 March 28 July 1 December 30 March 3 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 44
49) National Grid Insurance USA LTD Nonâ€Profit Health Service Corporations Name Change “Freelancers Health Service Corporation” to “Health Republic Insurance of New York, Corp.” Merger Agreement Filed Preferred Assurance Company, Inc. into MVP Health Services Corporation Title Insurance Companies Name Change “United General Title Insurance Company” to “First American Title Guaranty Company” Redomestication Filed First American Title Guaranty Company (from California to Texas) Fraternal Benefit Societies Nonâ€Opting Merger Agreement Filed Slovak Gymnastic Union “Sokol” of the United States of America into Greater Beneficial Union of Pittsburgh July 24 October 21 April 21 October 6 October 6 November 12 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 45
50) REPORTS FILED ON EXAMINATION OF AUTHORIZED INSURERS Reports on Examinations can be found on our website in the Examination Reports section. LIQUIDATION, CONSERVATION AND REHABILITATION PROCEEDINGS INSURANCE COMPANY PROCEEDINGS Domestic Estates in Liquidation 21 Domestic Estates in Rehabilitation 1 Conservation Estates 1 Ancillary Receivership Estates 18 Shell Estates in Liquidation 0 Total 41 DOMESTIC ESTATES AND CONSERVATION ESTATES †ASSETS & LIABILITIES Total Assets $979,379,782 Total Liabilities $5,968,173,910 Total Insolvency $4,988,794,128 DOMESTIC ESTATES IN REHABILITATION †ASSETS & LIABILITIES Total Assets $167,982 Total Liabilities $9,187 Total Insolvency/(Surplus) ($158,795) LIQUIDATION AND REHABILITATION ACTIVITIES Domestic Estates Commenced Professional Liability Insurance Company of America UHAB Mutual Insurance Company Continued Atlantic Mutual Insurance Company DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 46
51) Centennial Insurance Company Colonial Cooperative Insurance Company Cosmopolitan Mutual Insurance Company Executive Life Insurance Company of New York First Central Insurance Company Frontier Insurance Company Group Council Mutual Insurance Company ICM Insurance Company Ideal Mutual Insurance Company Long Island Insurance Company Midland Insurance Company Nassau Insurance Company Realm National Insurance Company The Insurance Corporation of New York Transtate Insurance Company Union Indemnity Insurance Company of New York United Community Insurance Company Washington Title Insurance Company Completed Capital Mutual Insurance Company Carriers Casualty Insurance Company Colonial Indemnity Insurance Company Consolidated Mutual Insurance Company Galaxy Insurance Company Home Mutual Insurance Company of Binghamton, New York New York Merchant Bankers Insurance Company Whiting National Insurance Company Shell Estates Commenced None DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 47
52) Completed Grand Central Assurance Corporation Domestic Estates in Rehabilitation Commenced None Continued Lion Insurance Company Converted Professional Liability Insurance Company of America Ancillary Receiverships Commenced None Continued American Manufacturers Mutual Insurance Company American Motorists Insurance Company American Mutual Insurance Company of Boston American Mutual Liability Insurance Company Commercial Compensation Casualty Company Credit General Insurance Company Eagle Insurance Company First Sealord Surety, Inc. Fremont Indemnity Company Legion Insurance Company LMI Insurance Company Lumbermens Mutual Casualty Company Newark Insurance Company PHICO Insurance Company Reliance Insurance Company The Home Insurance Company Ullico Casualty Company DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 48
53) Villanova Insurance Company Completed Acceleration National Insurance Company Amwest Surety Insurance Company Security Indemnity Insurance Company Shelby Casualty Company Conservations Commenced None Continued Northumberland General Insurance Company Completed Folksam International Insurance Company (UK) Ltd. Legion Indemnity Company Fraternal Benefit Societies Commenced Arion Sick and Benevolent Society of the City of NY Benjamin Storch Association, Inc. Chevra Ohev Sholem Anshei Bukaczowce Chevra Rodfe Zedek Ansche Bolszowce Congregation Bnei Isaac Anshei Lechowitz First Krakowitzer Society Metropole Association, Inc. Tarnopoler (Yadâ€Charitzem) Workingmen Sick and Benevolent Association The First Solotwiner Sick & Benevolent Society United Brothers Benevolent and Fraternal Society Inc. Victory Foundation, Inc. Continued Brooklyn First, Inc. Chevra Bnei Solomon Jezierner DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 49
54) Chevra Neir Tomid Anshei Lubashow, Inc. Congregation Agudath Bnai Kodesh Anshei, Kroz First Koshovater Benevolent Society of New York Laurelton Welfare Association, Inc. New Kosintiner Young & Old Men’s Society, Inc. Order of Lions, Inc. Plonsker Young Men’s Benevolent Society, Inc. Senate Association, Inc. Completed Adolph Ullman’s Aid Society Association Mordecai Becher, Lieb Appel and Rubin B’nai Jacob and Bertha Landy Society Congregation Ahavas Achim Anshei Tamashauer Petrokov Congregation Anshe Kesser of Corona First Boberka Sick and Benevolent Society First Yagotiner Relief Association, Inc. Friends of Zion of Harlem Independent Novoselitzer Bessarabian K.U.V. Independent Stryjer Benevolent Society Janover Kowner Guberna Benevolent Association, Inc. Malcher Young Men’s Benevolent Association, Inc. Starasol Friends Association, Inc. Tabernacle Benevolent Association, Inc. The Cyril Maslow Family Circle, Inc. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 50
55) PROPERTY AND CASUALTY INSURANCE PROPERTY/CASUALTY INSURANCE ENTITIES SUPERVISED BY THE DEPARTMENT Class Number Accredited Reinsurers 91 Advance Premium Coâ€Operatives 17 Assessment Coâ€Operatives 23 Associations, Pools, And Syndicates 13 Captive Insurers 63 Financial Guaranty Insurers 15 Mortgage Guaranty Insurers 28 Property Insurance Underwriting Association (FAIR Plan) 1 Property/Casualty Insurers 795 Risk Retention Groups 16 Title Insurers (Including Two Accredited Reinsurers) 114 United States Branches 25 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 51
56) LICENSED PROPERTY/CASUALTY INSURER SELECTED DATA 2010â€2013 2013 2012 2011 2010 Stock Companies Number of Insurers 746 746 749 746 Dollars in Millions Net Premiums Written $272,826 $256,680 $246,260 $237,965 Admitted Assets 962,536 932,179 897,221 892,494 Unearned Premium & Loss Reserves 502,233 493,209 482,441 473,590 Other Liabilities 110,270 104,751 95,718 92,118 3,980 3,922 3,978 3,986 350,033 334,220 319,061 326,786 Capital Surplus to Policyholders Mutual Companies Number of Insurers 67 69 71 72 Dollars in Millions Net Premiums Written $80,891 $77,938 $75,733 Admitted Assets 302,771 275,189 259,614 256,394 Unearned Premium & Loss Reserves 109,379 106,682 104,797 101,209 Other Liabilities 38,302 31,648 28,559 28,290 Surplus to Policyholders $86,179 155,090 136,858 126,258 126,895 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 52
57) PROPERTY/CASUALTY INSURER DIRECT PREMIUMS WRITTEN 2010â€2013 Property/Casualty Lines Percentage Change Year Dollars in Millions 2010 2011 2012 $33,014 $34,147 $35,907 10,147 10,431 10,811 6,771 7,025 7,279 3,376 3,406 3,532 1,748 1,718 1,826 4,138 4,089 4,466 2,986 3,057 3,249 3,623 4,157 4,755 4,336 4,500 4,704 1,380 1,374 1,354 962 1,032 1,139 440 449 445 463 455 442 277 344 387 546 574 564 126 138 135 804 643 431 195 192 177 324 342 366 14 63 47 72 75 84 115 151 152 19 21 23 301 344 349 All Premiums Written Private Passenger Auto Bodily Injury and Property Damage Liability Comprehensive and Collision Commercial Auto General (Other) Liability Commercial Multiâ€Peril Workers' Compensation Homeowners' Multiâ€Peril Medical Malpractice Inland Marine Ocean Marine Fidelity and Surety Accident and Health Fire Product Liability Financial Guaranty Mortgage Guaranty Allied Lines Aircraft Boiler and Machinery Credit Burglary and Theft All Other 2009 $32,885 9,948 6,588 3,360 1,796 4,155 3,026 3,423 4,219 1,336 954 450 484 260 550 131 1,030 209 331 115 74 100 18 277 2013 $38,004 11,112 7,399 3,713 1,962 4,978 3,488 5,191 4,901 1,365 1,262 444 483 420 600 152 375 184 386 57 87 140 26 391 2009â€2013 16% 12% 12% 11% 9% 20% 15% 52% 16% 2% 32% â€1% 0% 62% 9% 16% â€64% â€12% 17% â€50% 18% 40% 44% 41% 2012â€2013 5.80% 2.80% 1.60% 5.10% 7.40% 11.50% 7.40% 9.20% 4.20% 0.80% 10.80% â€0.20% 9.30% 8.50% 6.40% 12.60% â€13.00% 4.00% 5.50% 21.30% 3.60% â€7.90% 13.00% 12.00% DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 53
58) PROPERTY/CASUALTY NET PREMIUMS WRITTEN Stock Companies No. of Companies Net Premiums Written Mutual Companies Surplus/ Policyâ€holders 746 $272,826 $350,033 No. of Companies Dollars in Millions Ratio of Premiums to Surplus 0.8 67 Net Premiums Written Surplus/ Policyâ€holders Dollars in Millions $86,179 $155,090 Ratio of Premiums to Surplus 0.6 Aggregate Writings (in Billions): $359.0 % in Stock: 76.0% FINANCIAL GUARANTY INSURERS SELECTED DATA 2013 Number of Companies 2012 2011 2010 15 14 16 15 Dollars in Millions Exposure Net premiums written $1,481,807.25 $1,602,780.90 $2,140,822.60 $2,450,692.60 705.97 602.40 964.00 1,368.40 Admitted assets 31,457.99 27,309.00 34,051.30 36,476.40 Unearned premium & loss reserves 12,309.01 8,446.90 16,521.30 18,135.80 Other liabilities 7,704.31 8,884.90 11,455.50 12,257.70 Capital 1,066.82 739.30 1,069.30 1,069.30 $11,444.67 $9,977.10 $6,074.50 $6,083.00 Surplus to policyholders DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 54
59) MORTGAGE GUARANTY INSURERS SELECTED ANNUAL STATEMENT DATA 2013 2011 2010 28 Number of companies 2012 32 32 31 Dollars in Millions Net premiums written $3,821.15 $3,436.20 $3,655.90 $3,624.50 Admitted Assets 19,101.32 19,483.40 21,437.10 24,344.90 Unearned premium & loss reserves 12,025.33 13,462.90 14,277.30 15,132.90 Other liabilities 1,386.47 2,740.50 3,537.40 1,748.10 Capital 76.78 86.20 87.20 85.40 Surplus $5,689.52 $3,227.90 $3,622.40 $7,463.90 MORTGAGE GUARANTY INSURERS NET PREMIUMS WRITTEN AND SURPLUS Net Premiums Written (During Year) Surplus to Policyholders (End of Year) Ratio of Premiums to Surplus Dollars in Millions $3,821.15 $5,689.52 0.67 TITLE INSURANCE COMPANIES SELECTED DATA Number of Companies 2013 2012 2011 2010 23 25 23 24 Net premiums written Dollars in Millions $10,569.99 $10,742.90 $8,912.20 $9,050.80 Admitted assets 7,638.33 8,803.90 8,160.00 8,170.40 Liabilities 4,252.53 5,143.10 5,388.70 5,399.10 Capital 404.07 315.40 314.90 315.20 Surplus $3,385.80 $3,660.80 $2,771.30 $2,771.30 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 55
60) ADVANCE PREMIUM AND ASSESSMENT CORPORATIONS SELECTED DATA Total 2013 Number of companies Advance Premium Corporations Assessment Corporations 40 17 23 Dollars in Millions Total assets $2,856.29 $2,422.24 $434.06 Net premiums written 1,012.78 868.19 144.59 Surplus funds $1,234.48 $1,071.76 $162.73 HEALTH INSURANCE HEALTH INSURANCE ASSETS, LIABILITIES AND PREMIUMS WRITTEN Assets Liabilities Premiums Written in New York Dollars in Thousands Continuing Care Retirement Community (CCRC)* $ 1,056,080 $ 1,430,103 n/a (see note below) Article 42 Insurer 23,415,741 14,773,290 $ 9,457,612 Article 43 Corporation 7,570,955 4,481,898 10,758,084 HMO** 6,019,185 2,066,424 13,434,681 384,667 187,310 695,657 $ 38,446,628 $22,939,025 $34,346,034 Muniâ€Coop.*** Total * Numbers as of 2013. 2014 statements for CCRCs are due May 1. CCRCs do not have premiums. Residents pay a monthly fee. **HMO data is as of 2013 as the HMOs have not yet filed their 2014 Annual Statements, due April 1st. ** Muniâ€coop statements are due 120 days after the end of their fiscal year. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 56
61) LIFE INSURANCE LIFE INSURANCE COMPANIES REGULATED BY THE DEPARTMENT Type Number Life – New York 79 Life – Other States 54 Accredited Reinsurers 28 Fraternals – New York 3 Fraternals – Other States 32 Fraternals – Canadian, U.S. Branch 1 Charitable Annuities 358 Retirement Systems 21 Life Settlement Providers 30 Welfare Funds 22 Certified Reinsurers 9 Total 637 LIFE INSURANCE COMPANY ADMITTED ASSETS 2013 2012 2008 Dollars in Billions Total $2,950.9 $2,768.8 $2,315.7 Percent Increase From 2003 54.2% 44.7% 21.0% Type of Asset Bonds $1,202.7 $1,170.5 $1,016.7 Stocks 66.0 60.0 64.4 Mortgage Loans 202.7 190.9 195.1 Real Estate 11.4 10.9 13.0 Policy Loans/Liens 72.2 69.2 65.8 Shortâ€Term Holdings 22.3 21.1 38.9 Other 1,373.7 1,118.2 921.9 Note: Detail may not add to totals due to rounding. 2003 $1,913.3 †$881.3 52.6 149.8 12.7 55.4 23.1 738.4 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 57
62) LIFE INSURER ASSETS, LIABILITIES, CAPITAL & SURPLUS 2013 2012 Dollars in Billions Assets $2,950.9 $2,768.8 Liabilities 2,767.3 2,594.1 Capital & Surplus 183.6 174.6 TOTAL LIFE INSURANCE IN FORCE (COMPANIES LICENSED IN NEW YORK STATE) 2013 2012 2008 2003 Dollars in Billions Total Insurance In Force $15,986.3 $14,929.7 $13,638.1 $10,529.7 Percent increase from 2003 51.8% 41.8% 29.5% †Type of Business Dollars in Billions Ordinary $8,465.8 $8,085.4 $7,419.4 $5,801.1 Group 7,488.7 6,811.0 6,170.4 4,668.0 Credit 27.1 28.2 42.5 53.9 Industrial 4.7 5.1 5.8 6.6 LIFE INSURANCE IN FORCE IN THE STATE OF NEW YORK Insurance In Force 2012 2011 Total 2007 2002 Dollars in Billions $1,923.0 $1,934.7 $1,690.7 $1,387.0 38.6% 39.5% 21.9% $1,290.6 $1,287.9 $1,123.2 $830.2 Group 627.7 642.0 560.4 548.5 Credit 4.2 4.4 6.6 7.6 Industrial 0.4 0.5 0.5 0.8 Percent increase from 2002 Class of Business Ordinary DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 58
63) DOMESTIC LIFE INSURANCE COMPANIES ADMITTED ASSETS/INSURANCE IN FORCE Domestic Life Insurers 2013 2012 2008 2003 Dollars in Billions Admitted Assets $1,179.4 $1,115.1 $896.1 $716.2 Percent Increase from 2003 64.7% 55.7% 25.1% †Dollars in Billions Insurance in Force $6,910.1 $6,770.2 $6,309.4 $4,245.1 Percent Increase from 2003 62.8% 59.5% 48.6% †FRATERNAL BENEFIT SOCIETIES ADMITTED ASSETS/INSURANCE IN FORCE 2013 2012 2008 2003 Dollars in Billions Admitted Assets $105.6 $102.9 $78.4 $69.1 Insurance in Force $378.6 $369.9 $323.7 $280.0 PRIVATE PENSION FUNDS ADMITTED ASSETS/INSURANCE IN FORCE 2013 2012 2008 2003 Dollars in Millions Fair value of assets $242,805 $211,623 $153,075 $162,044 Payments to Annuitants and Beneficiaries $21,443 $22,627 $23,230 $9,098 Note: Prior to 2007, assets were Total Admitted Assets, when the annual statement was prepared on a statutory basis. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 59
64) PUBLIC RETIREMENT SYSTEMS AND PENSION FUNDS ADMITTED ASSETS/INSURANCE IN FORCE 2013 2012 2008 2003 Dollars in Millions Fair Value of Assets $384,408 $352,796 $353,446 $247,681 Payments to Annuitants and Beneficiaries $26,202 $24,838 $20,401 $14,081 Note: Prior to 2007, assets were Total Admitted Assets, when the annual statement was prepared on a statutory basis. SEGREGATED GIFT ANNUITY FUNDS ADMITTED ASSETS/INSURANCE IN FORCE 2001â€2011 2013 2012 2008 2003 Dollars in Millions Total admitted assets $2,483.0 $1,899.9 $1,444.5 Annual payments to annuitants $2,687.6 $215.4 $210.6 $192.3 $132.2 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 60
65) FUNDS HELD BY OR DEPOSITED WITH THE SUPERINTENDENT UNCLAIMED FUNDS FROM VOLUNTARY OR INVOLUNTARY BANK LIQUIDATIONS Date Funds Paid to Superintendent Name of Institution July 20, 2010 Deposits or Dividends Paid to Claimants in 2012 Paid to Date Balance Dollars in Thousands Middle Village Credit Union $43,054.73 $0 $24,546.85 $18,507.88 Total $43,054.73 $0 $24,546.85 $18,507.88 Note: All unclaimed Funds on deposit with the Superintendent are held by the Office of the State Comptroller. PUBLIC MOTOR VEHICLE LIABILITY SECURITY FUND Beginning Balance as of 4/01/2013 $64,633,734 Assessments Paid into the Fund 15,478,205 Net Interest income 52,427 Recoveries 24,263,716 Total Receipts 39,794,348 Subtotal Disbursements: Administrative Expenses 104,428,082 62,034 Awards & Expenses of companies in liquidation 2,851,488 Total Disbursements 2,913,522 Total in Fund as of 3/31/2014 $101,514,560 Note: The fund has an outstanding liability of $50 million for funds transferred from the Property Casualty Insurance Security Fund, as permitted under Section 7603 (e) (2) of the Insurance Law. DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 61
66) PROPERTY CASUALTY INSURANCE SECURITY FUND Beginning Balance as of 4/01/2013 $201,593,702 Assessments Paid into the Fund (6,845) Net Interest income 385,101 Recoveries 101,710,077 Total Receipts 102,088,333 Subtotal 303,682,035 Disbursements: Administrative Expenses 427,791 Awards & Expenses of companies in liquidation 55,392,069 Total Disbursements 55,819,860 Total in Fund as of 3/31/2014 $247,862,175 Note: Total does not include transfer of $87 million to State General Purpose Fund, or transfer of $50 million to the Public Motor Vehicle Liability Security Fund. WORKERS COMPENSATION SECURITY FUND Beginning Balance as of 4/01/2013 $143,926,532 Assessments Paid into the Fund 4,328,200 Net Interest income 153,097 Recoveries 90,212,581 Total Receipts 94,693,878 Subtotal Disbursements: Administrative Expenses 238,620,410 142,489 Awards & Expenses of companies in liquidation 77,369,339 Total Disbursements 77,511,828 Total in Fund as of 3/31/2014 $161,108,582 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 62
67) STATE TRANSMITTER OF MONEY INSURANCE FUND (STMIF) BALANCE SHEET Assets Cash in STMIF Account as of January 1, 2014 Cash Received in STMIF from 2013 Assessments Interest Received in STMIF Cash Expenses in 2013 TOTAL ASSETS Amount $19,415,410 0 22,436 0 19,437,846 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 63
68) DEPARTMENT ORGANIZATION AND MAINTENANCE 2014 DEPARTMENT RECEIPTS Assessments and Reimbursement of Department Expenses: Amount Banking Industry Assessment $81,863,578 Insurance Industry Assessment 380,374,307 Banking Industry Specific Assessment 41,760 STMIF Assessment 0 Insurance Industry Examination Fees 13,695,818 Administrative Expense Reimbursement 326,025 Subtotal 476,301,488 Taxes Collected Retaliatory Taxes †Insurance Law Section 1112 8,973,565 Excess Line Premium Taxes †Insurance Law Section 2118 87,900,873 Subtotal 96,874,438 Fees and Other Revenue Collected Section 9110 †Motor Vehicle Law Enforcement Fee 120,095,151 Licensing and Accreditation Fees 18,554,516 Section 9108 †Fire Insurance Fee 19,478,297 Fines and Penalties 383,174,171 MLO Annual License Fees 1,691,740 Banking Industry Application Fees 911,003 Section 1212 †Summons and Complaints 728,410 Section 112 †Filing Annual Statements, Certificates of Authority and Admission Fees 727,915 Fingerprint Fees 172,134 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 64
69) Section 9107 †Certification & Filing Fees 650 FOIL Requests 19,130 Miscellaneous Revenue 2,154 Subtotal 545,555,271 Foreign Fire Tax and Security Funds Receipts Foreign Fire Tax †Insurance Law Sections 2118, 9104 and 9105 55,211,963 Property Casualty Insurance Security Fund †Article 76 102,088,333 Public Motor Vehicle Liability Security Fund †Article 76 39,794,348 Workers' Compensation Security Fund †Article 6A of WC Law 94,693,878 Subtotal 291,788,522 Total Department Receipts $1,410,519,719 2013â€2014 STATE FISCAL YEAR INSURANCE EXPENDITURES APPROPRIATIONS AVAILABLE $552,196,823 Operating Budget Banking 84,358,599 Insurance 122,270,966 Subtotal – Operating Budget 206,629,565 Other Programs Banking Suballocations to other Agencies Insurance Suballocations to other Agencies Healthy NY, HMO Direct Pay, & Entertainment Workers Programs 227,000 84,190,114 200,814,330 Seized Assets 30,039 Settlement Enforcement 48,490 Subtotal – Other Programs 285,309,973 Total Expenditures 491,939,538 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 65
70) 2013â€2014 STATE FISCAL YEAR BANKING EXPENDITURES APPROPRIATIONS AVAILABLE $92,113,000 Operating Budget Personal Service 43,473,044 Nonâ€Personal Service 35,056,065 Total Banking Department Expenditures from Appropriations 78,529,109 Total Other Expenditures / Maintenance Undistributed (MU) 227,000 Total Expenditures from Banking Account 78,756,108 Seized Assets Appropriations Available 50,000 Non Personal Service 32,477 Total Expenditure from Seized Assets Account 32,477 Settlement Enforcement Appropriations Available 900,000 Nonâ€Personal Services 0 Total Expenditures from Aid to Localities 0 DEPARTMENT OF FINANCIAL SERVICES 2014 ANNUAL REPORT | Page 66
