Sageworks Blog

Jun11

What is FAS 114? Sanaa Bhambri [email] Marketing Analyst

Jun 11, 2013 10:26

A principal source of guidance on accounting for impairment in a loan portfolio under GAAP, Accounting Standards Codification Subtopic 310-10 was formerly known as the Statement of Financial Accounting Standards No. 114 (FAS 114), “Accounting by Creditors for Impairment of a Loan”. [More]

Jun 05, 2013 08:03

One of the common challenges surrounding the allowance for loan and lease losses calculations is how to determine if a loan is impaired under the FAS 114 status. Watch a video to understand when a loan is considered to be impaired under FAS 114 status. [More]

May 18, 2013 08:58

As part of Sageworks’ ongoing video series addressing some of the challenging issues and questions regarding allowance for loan and lease losses calculations, today’s video focuses on the benefits of performing monthly versus quarterly calculations for your ALLL reserve.

May01

Determining the appropriate method of impairment evaluation Billy Burnet [email]

May 01, 2013 11:50

A common challenge institutions face in their FAS 114 (ASC 310-10-35) impairment evaluations is determining when it is appropriate to utilize the Fair Market Value of Collateral method vs. the Present Value of Future Cash Flow method – the two primary methods of evaluation afforded under the accounting guidance. [More]

Apr18

Resource for bankers: Net present value calculator for future cash flows Libby Bierman [email] Analyst

Apr 18, 2013 13:05

For bankers tasked with the allowance for loan and lease losses, calculating the net present value of future cash flows with FAS 114 impairment analyses can be a cumbersome process and difficult to document. To help streamline the process, Sageworks has released a net present value of future cash flows calculator, a downloadable spreadsheet application that financial institutions can use to for the impairment of a single loan. [More]

Apr16

FAS 114 worksheet for collateral-dependent loans Libby Bierman [email] Analyst

Apr 16, 2013 16:27

Depending on the type of FAS 114 loan impairment method used, there are additional documentation expectations. For collateral-dependent loans, the additional documentation should disclose granular information about the collateral being used. To help with this documentation and the original analysis, Sageworks has released a spreadsheet-based FAS 114 Impairment Worksheet for collateral-dependent loans. [More]

Mar11

Common pitfalls of cash flow analysis while estimating FAS 114 Sanaa Bhambri [email] Marketing Analyst

Mar 11, 2013 08:16

A short informational video on the common pitfalls when performing cash flow analysis to calculate the FAS 114 impaired loans.

Oct 09, 2012 08:55

This guest post by Ancin Cooley, Principal of Synergy Bank Consulting and former regulator summarizes his presentation on qualitative factors in the ALLL, something on everyone’s mind in banking currently. ALLL Methodology: How to Justify and Document Your Qualitative Factors was the most recent webinar in Sageworks Webinar Series. The series is an offering of free, educational webinars led by consultants and leaders in the banking industry who share best practices for financial institutions. [More]

Sep 19, 2012 13:12

Seeing examiners walk through your financial institution’s door is often a cause for fear, or at least apprehension. They cause your institution to devote time and resources toward compliance, and they tend to have a way of finding the six loans in your portfolio that don’t have up-to-date information. Ease exam tension by following these nine steps. [More]

Jul 18, 2012 13:14

Allowance for loan and lease losses (ALLL) is an important regulatory procedure for banks and national bank regulatory agencies issued an updated inter-agency policy statement on the ALLL “to ensure consistency with generally accepted accounting principles (GAAP) and more recent supervisory guidance.” Learn how to efficiently comply and calculate the allowance for loan and lease losses. [More]