Community Banking Advisor
Showing 193–208 of 255 results
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Clocking customers’ growth – Watch out for expansion that can veer out of control
Winter 2012
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 441
Abstract: When a loan customer’s business is booming, it’s easy to be enamored by the outward signs of prosperity. But there could be underlying patterns of risky behavior that spell trouble. This article uses a hypothetical example to show how rapid growth can be decelerated to a more sustainable rate before a borrower careens out of control. When a lender keeps an eye on the borrower’s debt-equity ratio and profit margins, it can put the brakes on lending if the time is right.
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IT security: Is your program still effective?
Winter 2012
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 782
Abstract: In June 2011, the FFIEC issued Supplement to Authentication in an Internet Banking Environment, urging banks to tighten their controls on customer authentication. The FFIEC concluded that common authentication methods and controls have “become less effective” in an “increasingly hostile online environment.” This article shows how hackers have become more sophisticated, giving rise to the necessity of developing more complex defenses. These include “layered security” strategies, such as “out-of-band” authentication of high-risk transactions. The article lists additional tools and tactics recommended by the agency.
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Take a balanced approach to incentive compensation
Winter 2012
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 812
Abstract: For many banks, a strategically designed compensation plan — one that includes performance incentives — is critical to success. But a poorly designed program can encourage executives to engage in activities that maximize short-term returns while putting the bank’s long-term health at risk. This article discusses the FFIEC’s Interagency Guidance on Sound Incentive Compensation Policies and its three key principles to help banks design incentive compensation programs that are both safe and effective. The guidance also identifies four methods currently used to build risk into the compensation decision. A sidebar notes that new compensation rules for large banks could “trickle down” to community banks.
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BANK Wire – Tighter cybersecurity rules in place for 2012
Fall 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 416
Abstract: This issue’s “BANK Wire” notes that, to comply with updated federal banking rules that take effect Jan. 1, banks must add control measures to make Internet banking safer for customers. It also shows how FASB has amended its guidance on determining if a debt restructuring is a troubled debt restructuring (TDR). For most community banks, the guidance will apply to all restructurings after 2011.
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Lending to start-up businesses
Fall 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 479
Abstract: In this down economy, it pays to be more cautious than ever when lending to start-up businesses. This article reviews some of the factors to look for when a potential customer walks in the door — and what to require of the borrower. Specifically, bankers should consider the business’s industry and the entrepreneur’s qualifications and objectivity. Then they should determine what the benchmarks for success will be and ensure that they’ll be getting timely and reliable financial data.
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Mobile banking: How do we get there?
Fall 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 618
Abstract: Many banks now allow customers to access their accounts, make transfers and payments, and conduct other transactions — all from their mobile devices. However, despite the many benefits of mobile banking, customers are still wary of electronic banking methods. As a result, many community banks are reluctant to fully plunge into the mobile arena. This article shows some of the procedures banks can implement to make the most of this fast-growing market.
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Handle mergers with care
Fall 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 954
Abstract: The possibility of rising regulatory capital requirements has prompted many banks to consider a merger as a potential compliance strategy. These complex transactions raise a variety of corporate, financial, valuation, regulatory, tax and liability issues. This article provides an introduction to the merger process — with a focus on tax-free transactions. A sidebar offers a checklist to ensure that all the bases are covered during each phase of the merger process.
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BANK Wire – SAFE Act deadline
Summer 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 385
Abstract: This issue’s “BANK Wire” briefly discusses a July 29 SAFE Act deadline regarding the new Nationwide Mortgage Licensing System and Registry; FDIC guidance on overdraft fees; a proposal to require certain employees to be trained on FDIC deposit insurance coverage; and the Federal Reserve Board’s proposed amendments to Regulation CC, Availability of Funds and Collection of Checks.
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Getting a grip on business valuation
Summer 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 611
Abstract: How professional valuators come to their conclusions depends on many variables. This article offers some basic tenets for bankers to keep in mind as they review business valuation reports. It describes three definitions of “value” and three approaches to valuing a business.
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Destination foreclosure – Mind the paper trail as you advance
Summer 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 586
Abstract: Following the 2010 scandal involving improper foreclosure policies and practices at some of the nation’s largest banks, federal regulators are taking a closer look at the process. This article lists a number of weaknesses that have been found at 14 large mortgage servicers — in particular the use of “robo-signers.”
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Is your real estate appraisal program up to par?
Summer 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 864
Abstract: In the wake of the financial crisis, lawmakers and banking regulators have set their sights on real estate collateral valuation practices. To be sure of meeting examiners’ expectations, it’s important to conduct an assessment of one’s appraisal and evaluation program. This article looks at the recently revised Interagency Appraisal and Evaluation Guidelines that indicate which transactions are covered and what makes a collateral valuation program effective. A sidebar discusses an evaluation of collateral, which may be required in lieu of an appraisal when a transaction is exempt.
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BANK Wire – FASB backs off fair value proposal
Spring 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 403
Abstract: This issue’s “BANK Wire” explains that FASB has tentatively decided to allow banks to continue reporting loans held for collection at amortized cost rather than at fair value. It also notes appraisal and evaluation policies and procedures in view of new guidelines issued by the five banking regulators in December; FASB’s deferral of the effective date for certain disclosures about troubled debt restructurings (TDRs); and the Secure and Fair Enforcement for Mortgage Licensing Act, which imposes strict licensing and registration requirements on mortgage loan originators (MLOs).
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Do you think all financial statements are created equal?
Spring 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 624
Abstract: When sitting down to review a customer’s financial statements, banks shouldn’t forget to consider the differences between public and private companies, the customer’s incorporation type, and the accounting method used. This article discusses the details of these factors to help banks take into account their borrowers’ differences.
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ALLL best practices – Pay attention to qualitative factors
Spring 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 492
Abstract: Staying on top of the allowance for loan and lease losses (ALLL) is critical for banks, especially in the current economy. If examiners find that an ALLL is underfunded, they may downgrade the bank’s CAMEL rating, require it to increase capital levels or take other remedial action. One of the biggest challenges in calculating the ALLL is assessing the impact of qualitative, or “environmental,” factors that cause a bank’s loss estimates to deviate from its historical loss experience. This article looks at interagency guidance that provides a useful outline for this analysis, but also discusses best practices proposed by two examiners.
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4 tips for boosting noninterest income
Spring 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 936
Abstract: Noninterest income is declining for many banks. There are many reasons for this, including general economic conditions and regulatory changes, such as opt-in requirements for overdraft protection fees and limitations on credit card fees and debit card interchange fees. This article discusses four strategies for increasing noninterest income: improving collection of current fees, getting to know the competition, putting a value on banking relationships, and buying life insurance on the lives of key employees. A sidebar discusses the circumstances in which tax-advantaged bank-owned life insurance (BOLI) benefits are available.
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BANK Wire – Federal Reserve sets rule on appraiser independence
Winter 2011
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 387
Abstract: This issue’s “BANK Wire” discusses a Federal Reserve Board interim final rule on appraiser independence that expands on the Dodd-Frank Wall Street Reform and Consumer Protection Act. It also explains why community banks seeking new sources of capital should consider applying to the Small Business Lending Fund.