Banking
Showing 433–448 of 600 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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Back to Basics – ’Tis the season for succession planning
Year End 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 504
Abstract: Year end is a time of planning for many business owners, and an important part of this process is succession planning and preparing the next generation of management for what lies ahead. Lenders, of course, have a vested interest in their borrowers’ successors. This article points out that succession planning isn’t just for business owners nearing retirement; lenders may need to revise loan covenants to require key-person insurance. Also, a valuation professional should evaluate buy-sell agreements.
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Spotting customers ripe for a turnaround
Year End 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 651
Abstract: As the economy continues to mend — sputtering along the way — commercial lenders must remain ever-vigilant in identifying customers that show signs of financial distress. An ailing customer may be a good candidate for a financial workout, or a “turnaround.” This article shows how to detect problems early and how a turnaround team works.
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The lowdown on depreciation
Year End 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 890
Abstract: Changes in tax rules for depreciation may have unexpected effects on borrowers’ financial statements. Lenders who don’t understand their potential impact might respond incorrectly to their borrowers’ financials. This article discusses the effects that Section 179 expensing and bonus depreciation will have on some borrowers’ balance sheets and income statements — effects that are different for borrowers who provide tax-basis financial statements than for those who use Generally Accepted Accounting Principles (GAAP). A sidebar discusses these breaks as they affect companies with leasehold, restaurant or retail properties.
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After the dust settles – Accounting issues for business combinations
Year End 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 793
Abstract: Why borrowers’ financial statements often look markedly different following a merger or an acquisition is connected to the accounting rules for business combinations. This article offers some points lenders should keep in mind as they review their borrowers’ financial statements. It discusses the basics of purchase price allocation, and notes that business appraisers can help a borrower with the more complicated aspects of a business combination, such as earnouts, deferred tax assets and liabilities, and bargain purchase prices.
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Back to Basics – Your borrowers’ hidden liabilities
October / November 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 481
Abstract: It’s every lender’s nightmare: A borrower gets blindsided by an unexpected liability that renders it insolvent, irreparably tarnishes its reputation or impairs its ability to repay debts. Not every potential liability is reported on the balance sheet, so this article presents some hidden liabilities that careful scrutiny can uncover: contingent liabilities, underfunded pensions, and industry and internal risks.
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Financial statement footnotes are more than a P.S.
October / November 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 475
Abstract: The review of borrowers’ financial statements is a critical tool in evaluating risks. But it’s the footnotes that may be most helpful in revealing underlying details — and potential problems. This article shows how footnotes can provide information about preferential treatment in related-party transactions; changes in accounting methods in order to manipulate financial results; significant events that could materially impact future earnings or impair business value; and the existence of certain contingent liabilities.
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In good form – Getting borrowers to think outside the corporate box
October / November 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 988
Abstract: Many borrowers operate as C corporations to limit their personal liability. But sometimes the costs (such as double taxation) and hassles of incorporation outweigh the benefits. Hybrid options, however, offer the best of both worlds: limited personal liability and tax savings. This article describes the pros and cons of sole proprietorships and general and limited partnerships, along with such hybrid options as limited liability companies (LLCs), limited liability partnerships (LLPs) and S corporations. A sidebar explains why it’s sometimes beneficial to set up separate legal entities.
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What drives value, drives credit
October / November 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 827
Abstract: Balance sheets give financial statement readers insight into a company’s financial position — its assets and liabilities — at a given point in time. But it’s dangerous to equate the book value of equity on the balance sheet with the equity’s fair market value. For many reasons, these values can be significantly different. This article explains why a balance sheet can present an incomplete picture of financial position, and why it’s important to track future earnings and evaluate local comparables.
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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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Back to Basics – Demystifying deferred taxes
August / September 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 487
Abstract: Deferred tax assets and liabilities can confuse just about everyone. A lender reviewing a borrower’s financial statements may wonder what they are and how the company quantifies them. This article explains deferred taxes and points out the difference between deferred tax assets and deferred tax liabilities. This understanding can help lenders judge when assets are being overvalued or liabilities understated to achieve a rosier outlook.