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Sageworks Blog


What accountants do after busy season

Now that another tax season is on the books, we wanted to find out what accountants do after April 15th. We asked the Business Advisory Professionals group on LinkedIn and here are the responses we received. [More]


Evaluating technological service providers for community bankers

This week the FDIC re-issued three documents containing information on technological outsourcing for community bankers. The documents were originally issued in 2001 and were included in a Financial Institution Letter (FIL) to FDIC-supervised institutions with less than $1 billion in total assets. The topics covered in these documents are: effective practices for selecting a service provider, tools to manage technology providers; performance risk and techniques for managing multiple service providers.



Top 10 challenges facing community bankers

Today’s regulatory environment continues to be the most pressing issue to community bankers, according to a recent poll conducted by the CB Journal. Other challenges include the interest rate environment, loan growth and more. [More]


Video: How to justify and support your qualitative factors – Part I

Justifying and documenting qualitative and environmental factors in the allowance calculation is a common challenge for banks and credit unions. More than 50 percent of the bankers during a recent webinar pointed to qualitative and environmental factors as their biggest ALLL challenge. In part 1 of this video series on qualitative factors, we identify best practices and supporting documents that can be used to justify and document your external-looking qualitative factors.



What is your current networking ROI?

In this brief video, founder and president of The Business Fox, Nancy Fox, discusses how to calculate your networking return on investment (ROI). Fox highlights you should be taking into account membership dues/fees, conferences, lunches, and travel expenses. She points out that on average, professionals spend $2,500 per year on networking. To find out how to calculate your networking ROI, watch the following video:



Why should you automate loan administration?

Many financial institutions have gotten by using their core system or a series of spreadsheets to manage tickler and covenant tracking as well as client communications. In today’s regulatory environment, however, banks and credit unions are being asked to minimize risk and standardize processes. An easy step with loan administration would be to consider automation. [More]


Backtesting: Deeper investigation of specific portfolio segments

Backtesting the allowance for loan and lease losses (ALLL) enables banks and credit unions to compare actual results for a defined period to the results forecasted by a model for the same period in order to evaluate accuracy of the model’s predictiveness.

When evaluating specific portfolio segments, it is important to determine answers to several questions from period to period such as: Which segments had an increase in the FAS 5 reserve? How much of the increase is due to changes in volume of that portfolio? How much is due to change in loss rate? [More]


How often should an institution obtain new appraisals when using the collateral method?

In a recent webinar, Garrett Morris, senior credit and risk management consultant at Sageworks, discussed how often an institution should obtain new appraisals when using the collateral method of loan analysis.


Valuation best practices for private equity firms

Whether being used for performance data or to win deals, valuations that private equity firms develop should be supported by a methodology that is: robust, consistent, and transparent.

Valuations are most accurate (and defensible) when they are developed through a robust process. As the International Private Equity and Venture Capital (IPEV) Guidelines for valuation notes, valuers should exercise judgment, applying “a technique or techniques that is/are appropriate in light of the nature, facts and circumstances of the Investment in the context of the total Investment portfolio and should use reasonable current market data and inputs combined with Market Participant assumptions.”


Lending pace reaches pre-recession levels

Banks are lending at a pace dangerously close to that of pre-recession 2007. So why, after all the warning signs from the Federal Reserve, are banks taking on more risk? The answer: a record $10 trillion in cash deposits in U.S. banks. [More]