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Sageworks Blog


How to stress your CRE portfolio

Many banks are familiar with top down stress tests, as these tests may not necessarily require the use of a sophisticated model and there is an accepted way to implement the tests. Bottom up stress testing, however, is not as clearly defined by guidance and is often left up to the institution for interpretation. Commercial real estate (CRE) concentrations and the added risk of these loans are a fact of life for many banks. Whether the bank already has a large CRE concentration or is targeting the segment for growth, CRE stress testing is a key component of an effective risk-management framework and can be one of the best ways to defend and support a CRE concentration. [More]


Justifying your ALLL in a period of low historical losses

A common concern among banks recently is how to correctly implement loss methodologies in a period of low historical losses. While it’s a relatively good problem to have, it nonetheless imposes challenges in the calculation of the ALLL. If there are few reference points, how then, does a bank go about calculating an accurate measure for loss? [More]


Establish a strategy for cross-selling your accounting firm's services

The AICPA estimates that winning a new client costs 11 times more than retaining a current client. One way for accountants to increase firm revenue and deepen client relationships is to offer value-added services to existing clients. Don’t know where to start? Download this checklist to learn how to develop a retention strategy for your accounting firm. [More]


Being a thought leader helps your accounting firm recruit, retain staff

Finding and retaining quality staff is a top issue for accounting firms of many sizes. Your firm’s efforts to become a thought leader and to develop a sound content marketing program may help you recruit and retain quality staff. Rob Nance of Inovautus Consulting explains.



How to use stress testing as a tool for risk management

By now, we should all be familiar with the term “stress testing.” And while stress testing is not a new concept – it is an important part of the risk management process for every institution. Recent mandates from regulatory bodies have placed a renewed emphasis on it. Most institutions perform routine stress tests with loan decisioning or during annual reviews. However, the emphasis from the regulatory bodies, borne out of the need to examine capital adequacy for the institution, has been to expand stress testing to be more encompassing, usually from a top-down perspective. [More]


Not Doomsday, but significant changes coming

The banking industry is currently preparing for a significant milestone as well – the announcement of new accounting standards by the FASB, known as the CECL model. It’s a hot topic in the banking community, as the proposed model is expected to dramatically change the current process for calculating an institution’s ALLL reserve. [More]


Peeking over the fence: How other banks run Loan Review

Observant neighbors will attest: it can be helpful to know what your neighbors are doing, to both inform what you are doing and to see how they compare. Essentially, nosey neighbors are benchmarking, and while it may not always be well received about the other party, we have good news for bankers.

Peer banks are letting you peek over the fence. [More]


6 reasons why your accounting firm should establish an industry niche

Thirty-five percent of buyers for accounting services use expertise and specialization as a deciding factor when selecting a firm. Benefits to developing a firm focus include establishing a competitive edge in the marketplace, building your accounting practice’s credibility and winning and retaining more clients. [More]


5 Reasons bankers should attend the Risk Management Summit

The 3rd annual Risk Management Summit is less than two months away, and many bank and credit union executives have already registered to join their peers, industry experts and Sageworks in Nashville this September. Why are bankers rushing to register?



How one firm used ProfitCents to win a new accounting client

Many accountants find it challenging and are not sure how to start developing an industry focus for their firm. In a recent case study, Sageworks’ client MiddletonRaines + Zapata, a growing Houston-based accounting firm, shared how they attracted and won numerous engagements by establishing an industry niche with the help of ProfitCents. [More]