Banking
Showing 369–384 of 600 results
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BANK Wire – Study links higher CRE concentrations with bank failure
Summer 2013
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 423
Abstract: This issue’s “BANK Wire” discusses a Federal Reserve and OCC white paper that analyzes the impact of the OCC’s 2006 commercial real estate concentration guidance regarding enhanced credit risk controls. It also looks at an IRS private letter ruling on whether a financial institution has a tax-reporting obligation with respect to account-opening bonuses for new IRAs or Section 529 college savings plans. In addition, it notes a survey showing a swift rise in mobile banking and discusses the Consumer Financial Protection Bureau’s recently published mortgage rule compliance guide.
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Accounting for credit losses – Getting ready for big changes
Summer 2013
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 513
Abstract: For community banks, accounting for credit losses — which are reflected in the allowance for loan and lease losses (ALLL) — is a critical process that can have a significant impact on earnings and capital. Recently, both the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued proposals to change the way financial institutions determine when and how credit losses should be recognized. This article looks at the different proposals and what the future might hold.
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What do you know about ESOPs?
Summer 2013
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 725
Abstract: This article looks at some of the basics of an ESOP — an employee stock ownership plan. An ESOP is a qualified retirement plan that invests in the bank’s own stock. A bank’s contributions to an ESOP are tax deductible, and a leveraged ESOP can be a highly tax-efficient vehicle for raising capital. Furthermore, an ESOP can be a powerful incentive for attracting, retaining and motivating employees. But there are pros and cons for S and C corporations.
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Community banks: Prepare for an M&A surge
Summer 2013
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 867
Abstract: The confluence of several factors — including a struggling economy, intense competition and a challenging regulatory environment — is putting pressure on community banks to consider mergers and acquisitions (M&As) as a growth strategy. This article considers a number of issues that small banks will confront as they go through the merger or acquisition process. It discusses the importance of obtaining a professional valuation and performing due diligence, along with whether to structure the transaction as a merger or as an asset or stock acquisition. A sidebar looks at the findings of the FDIC’s Community Banking Study on banking industry consolidation.
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Back to Basics – Divide and conquer with a separate legal entity
June / July 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 425
Abstract: If a borrower owns its real estate, possesses significant fixed assets or operates several lines of business, its bank might be exposed to unnecessary risk. That’s why it’s important for lenders to review their loan portfolios for borrowers with certain traits. This article discusses how creating separate legal entities can be an effective tool to minimize risk.
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4 easy ways to retain borrowers
June / July 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 534
Abstract: In today’s competitive lending market, financial institutions risk losing borrowers to more assertive lenders who promise lower interest rates, higher credit lines and faster closing dates. And high customer turnover can cause a loan officer to look bad to senior bank executives. This article describes four ways that lenders can improve their relationships with customers.
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Protecting yourself against “deepening insolvency”
June / July 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 707
Abstract: Lenders will try to do what they can to help their clients succeed. But financial institutions could be held accountable by a customer’s creditors under the legal theory of “deepening insolvency” if the customer seeks bankruptcy protection. In deepening insolvency, a struggling company takes on additional debt or equity financing, thereby compounding its insolvency and significantly impairing its ability to repay creditors. This article looks at the history of deepening insolvency claims and what lenders can do to protect themselves.
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Ready, set, lend – Which startups are worth the risk?
June / July 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 682
Abstract: Startups are more likely to fail than not, but there are a few bright spots that present lucrative lending opportunities for the diligent, adventurous lender. This article discusses how to evaluate a startup, including its management quality, and looks at the factors that can improve a startup’s odds. A sidebar shows how employee stock options can be one such factor.
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Back to Basics – Putting Benford’s Law to work
April / May 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 430
Abstract: It may seem intuitive that, in a list of numbers, the first digit will just as likely be one numeral as any other. But “Benford’s Law” shows that “1” appears nearly a third of the time, and each succeeding numeral has a progressively smaller frequency. This makes Benford’s law an useful tool for investigators to unearth fraud. This article explains how, and discusses a spreadsheet tool that makes it easy to put this technique into effect.
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How much is a business worth?
April / May 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 654
Abstract: If a loan customer overextends itself by paying an inflated price for a business, there’s a good chance it will have a problem meeting its loan obligations. Rather than let that happen, an astute lender knows the importance of professional valuations and what goes into them. This article reviews some of the basics: the several meanings of value, the three approaches to valuing a business, and the importance of using a qualified appraiser.
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Financial checkups – “Wellness visits” pay off
April / May 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 557
Abstract: Giving a borrower a routine checkup can help detect problems before distress symptoms appear on one’s year end financial statements. This article explains what to look for on a site visit and lists several warning signs of financial distress.
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Lean, mean borrowing machines – Encourage borrowers to cut the fat from working capital
April / May 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 809
Abstract: Working capital — current assets minus current liabilities — is traditionally a measure of liquidity. High liquidity generally equates with low risk, but excessive amounts of cash tied up in working capital detract from other spending options, such as expanding to new markets, buying equipment and paying down debt. This article discusses five best practices for reducing working capital. A sidebar cites a study showing that top performers have significantly lower working capital on hand than do mediocre companies.
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BANK Wire – CFPB issues mortgage ability-to-repay rule
Spring 2013
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 411
Abstract: This issue’s “BANK Wire” discusses the Consumer Financial Protection Bureau’s final rule amending Regulation Z, requiring mortgage lenders to make a reasonable, good-faith determination of a borrower’s ability to repay the loan. It also looks at the OCC’s warning that banks’ efforts to increase profitability may lead to inappropriate risk-taking, and at an FDIC study that addresses structural change, the geography of community banking, comparative financial performance, balance sheet strategies and capital formation.
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Borrowers are not created equal – Use financial statement reconciliations to compare diverse customers
Spring 2013
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 619
Abstract: “Normalizing” reconciliations to the income statement and balance sheet is necessary when comparing diverse borrowers. A thorough knowledge of accounting helps lenders prepare dissimilar customers’ financial statements for apples-to-apples comparisons and to aid in underwriting decisions. This article offers a basic explanation of this accounting tactic, taking into account varied accounting methods, one-time events and related-party transactions.
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Suspicious activity reports: Are you using “key terms”?
Spring 2013
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 582
Abstract: One detail that banks often overlook when filing suspicious activity reports is FinCEN’s list of key terms to include in the narrative section. Using these terms helps law enforcement officials detect fraud and money laundering more quickly, which, in turn, helps protect bank customers. This article describes a few examples of these terms.
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Take the stress out of stress testing
Spring 2013
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 857
Abstract: Stress testing can be a powerful tool for evaluating the impact of adverse external events on a bank’s earnings, capital adequacy and other performance measures. It also can guide an institution’s risk management and capital planning efforts. But until recently, there’s been some confusion about regulators’ expectations for stress testing by community banks. This article discusses new OCC supervisory guidance on this topic, looking at a variety of stress testing methods. A sidebar notes the circumstances under which institutions are expected to employ enhanced risk management techniques, including stress testing.