Banking
Showing 513–528 of 600 results
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OTTI: What it is and why you should care about it
Winter 2010
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 587
Abstract: A crucial accounting issue for banks is the treatment of other-than-temporary impairment (OTTI) for investments. Under previous rules, assets that experienced OTTI were written down to fair value, with a corresponding charge to earnings. Many banks felt that this treatment was unfair, particularly for securities they had no intention of selling. In mid-2009, FASB issued guidance that changes the way these impairments are recorded for certain securities. OTTI can have a significant impact on bank earnings and regulatory capital, so it’s important to have policies and procedures in place for classifying securities, determining fair value, assessing securities for OTTI and measuring the credit and noncredit components.
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Credit card overhaul – Comprehensive Reg Z and UDAP changes take effect July 1
Winter 2010
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 573
Abstract: Banks that issue credit cards have until July 1, 2010, to line up their compliance strategies for a massively changed set of UDAP (unfair or deceptive acts or practices) and Regulation Z (truth in lending) rules. The UDAP changes affect payment allocation, double-cycle billing, fee-based accounts and other issues, while the Regulation Z changes have an impact on credit advertising, billing error resolution, and other matters.
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Do you have a capital defense plan?
Winter 2010
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 1009
Abstract: Today, one of the biggest concerns of regulators is whether banks have adequate capital to withstand potential losses associated with high concentrations of commercial real estate loans. So it’s important that banks develop a capital defense plan as part of their preparation for regulatory exams. This article lists a number of best practices in this process, including reviewing and classifying one’s loan portfolio and reviewing and documenting the methodologies used to determine the allowance for loan and lease losses. A sidebar discusses a new FDIC rule regarding limits on deposit interest rates offered by institutions that are less than “well capitalized.”
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Retail e-tales – What to consider when lending to online retailers
November / December 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 423
Abstract: Retailers top the list of borrowers hardest hit by the downturn. But online retail could be a bright spot, as recession-spooked consumers search for bargains and convenience. When lending to e-tailers, consider such factors as up-to-date search functions and privacy features, detailed product information and reliable customer reviews; how quickly borrowers modify promotions based on customer buying habits; and possible partnerships with brick-and-mortar stores.
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CPA services – Think outside of the accounting/tax box
November / December 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 660
Abstract: To get the most from outside financial experts, lenders should think beyond the stereotypical duties of audits and tax return preparation. Examples show how a CPA can help with turnaround efforts, conduct on-site inspections of borrowers’ facilities, investigate fraud, value inventory, and perform cost segregation studies.
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Break even or burn? A weak economy calls for strong analytical tools
November / December 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 605
Abstract: Breakeven and burn rates have historically been used to gauge the viability of new borrowers that have yet to turn a profit, such as startups and high tech firms. But today lenders are applying these analytical tools to mature companies that are struggling to survive the recession. This article looks at what’s involved in a breakeven analysis, and how to calculate a customer’s burn rate (how fast it uses cash). It’s important to recalculate burn rate on a regular basis because unforeseen circumstances can affect the rate of cash consumption.
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Being on the lookout for deceivable receivables
November / December 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 849
Abstract: Next to cash, receivables are the most trusted source of loan collateral. But face value might exaggerate the truth. To protect against deceivable receivables, it’s important that lenders compare a borrower’s receivables to expenses to look for fictitious sales, and investigate journal entries that occur after the end of the accounting period. They should identify and monitor customers with too much concentration risk, and go beyond the financial statement to look at supplemental schedules, in addition to taking other proactive measures. When a borrower suffers from poor collections, there are specific actions a lender can take to help correct the situation.
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Market niche insider – Making staffing firms work
September / October 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 461
Abstract: Staffing is a cyclical industry that fluctuates with the economy; revenue dwindles during downturns, and the current one is no exception. But observers expect that, as the economy gradually regains momentum, there will be a surge in the demand for temporary and permanent staffing services. But this also will be in response to changing trends within the industry, such as the shift to higher-skilled temps and “temp-to-hire” arrangements. To make the most of the next upswing, lenders should be sure that their employment-firm borrowers are revising their business models to keep up with the latest staffing industry trends.
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Why pay attention to internal controls?
September / October 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 555
Abstract: Some risky customer characteristics, such as inadequate internal controls, are not easily detected. Yet they are an essential cornerstone of asset protection. Whether through its own field audit or that of an independent auditor, a lender will need to get satisfactory answers to such questions as: Who has access to assets? Are accounts analyzed? And are controls prioritized?
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Closing is just the beginning – The real work starts after the merger or acquisition
September / October 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 631
Abstract: Regardless of how many spreadsheets a borrower runs or due diligence procedures performed before the deal closes, a lender won’t know if it will be successful until integration is completed. So the real work begins after the closing. A lender should examine how the new entity communicates the merger to its customers and how it transitions them into the new relationship. The company should similarly look to the concerns of its employees so as to retain the best performers. But, if all else fails, a demerger clause can provide a means of unraveling an unprofitable venture within a prescribed time frame.
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In the nick of time – Spotting distressed borrowers
September / October 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 1008
Abstract: The recession has impacted virtually every type of business. But how can a lender differentiate a temporary lag from irreparable mismanagement? Which borrowers are salvageable, and which are not? This article discusses not only red flags to watch out for in financial statements, but non-numeric indicators of distress, as well — such as employee turmoil, competitive pressures, management crises and a deteriorating track record. It describes proactive steps lenders can take, while a sidebar warns against lenient lending terms.
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Buying a troubled bank — a good strategy if you do it right
Fall 2009
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 334
Abstract: For a healthy community bank, acquiring a failed or failing institution can provide a valuable strategic opportunity. But just because the price is low doesn’t mean it’s a bargain. More than ever, it’s important for an acquiring bank to define its strategy, perform thorough due diligence, focus on valuation issues, and determine the best deal structure.
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Reduce costs without losing control
Fall 2009
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 514
Abstract: In a weak economy, like it or not, cost-cutting is an integral part of strategy. There’s no one right way to cut costs, but it’s important to consider the potential impact on internal controls. Eliminating jobs can heighten a bank’s risk if affected employees are integral to internal control processes. But there are ways to mitigate the risks if such job cuts are absolutely necessary.
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Outsourcing: Another cost-saving strategy
Fall 2009
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 753
Abstract: In times when cost-cutting is king, outsourcing some functions can be more appealing than ever to community banks. But, as this article explains, the key to success is finding the areas of a bank’s operation that are right for outsourcing. Should the internal audit function be outsourced? What about human resources, mortgage fulfillment or proof-of-deposit functions? It’s also important to carefully select and monitor the service provider. And, as a sidebar explains, offshore outsourcing can be a challenge for community banks that pride themselves on knowing their customers better than their larger counterparts do.
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Measure for measure – Which profitability measurement tools are best for your bank?
Fall 2009
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 984
Abstract: With some banks failing and many struggling, this article emphasizes that it’s vital for a community bank to monitor its performance closely. But which measurements are best? Historically, return on assets (ROA) has been the most popular. But banks are now placing greater emphasis on ROE. And how does one make a fair comparison between the performances of different branches? Finally, regardless of how one measures profitability, it’s important to consider the impact of risk. A sidebar looks at a recent survey that shows how banks are measuring profitability and using the results.
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Market Niche Insider – Evaluating a family affair
July / August 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 480
Abstract: Most family businesses are small private firms with limited resources to weather an economic downturn. Lenders should be on the lookout for relaxed management styles and minimal internal controls; nepotism; and a lack of clear succession planning.