Sageworks Blog

Jan 09, 2013 16:24

Sageworks recently polled financial institutions that use Sageworks Surety, our allowance for loan and lease losses solution, for their reserve calculation. From the survey, we received some positive news about how this solution is helping banks and credit unions reduce the time required for the ALLL estimation while also reducing manual errors and the likelihood of examiner criticism.

Jan 08, 2013 11:37

In a recent post, we described what the recently released FASB proposal regarding the expected loss model for the allowance for loan and lease losses and the potential impact this will have on financial institutions. But how should financial institutions begin to prepare, and what should they do now? [More]

Jan07

FASB proposes major revisions to accounting for credit losses Libby Bierman [email] Analyst

Jan 07, 2013 15:15

For the past few years, the Financial Accounting Standards Board (FASB) has been discussing the adoption of the “expected loss model” for the Allowance for Loan and Lease Losses (ALLL). On December 20, 2012, FASB issued a Proposed Accounting Standards Update that finally defines the actual accounting framework and clearly differentiates this proposal from the current accounting standard. The proposal calls for an entity to recognize an allowance for credit losses based on supportable forecasts of contractual cash flows not expected to be collected. [More]

Jan 04, 2013 10:11

If a business needs a loan, the business owner’s first stop will most likely be a traditional bank. But if S. 2231/H. R. 1418, the Credit Union Small Business Lending Enhancement Act is enacted, the local credit union might become another option for the loan-seeking business owner.

It's not that credit unions were previously absent from the commercial loan market, but due to a cap, they were unable to have more than 12.25 percent of total assets devoted to member business loans. The proposed legislation would increase that cap to 27.5 percent for well-capitalized credit unions. [More]

Jan03

Does “Fiscal Cliff” deal address businesses’ concerns? Mary Ellen Biery [email] Research Specialist

Jan 03, 2013 09:23

Congress has approved a temporary fix for at least part of the “Fiscal Cliff,” but with many questions remaining about future legislative action, it’s unclear whether it will be enough to address concerns of many U.S. business owners. In fact, a recent survey by Sageworks found that the uncertainty surrounding the fiscal cliff has been directly impacting the strategic decisions of many owners. [More]

Jan 02, 2013 15:08

The Wall Street Journal has an excellent summary of business-related provisions that were included in Congress’ “Fiscal Cliff” deal. The newspaper notes that restaurants, multinational corporations and producers of energy efficient appliances are among the types of companies that stand to benefit from the extension of several business-related rules. [More]

Dec31

5 Banking issues to watch in 2013 Mary Ellen Biery [email] Research Specialist

Dec 31, 2012 12:36

Community banks in the U.S. have several issues of great importance to track in the coming year, and SNL Financial’s Community Corner blog recently outlined what’s at stake. [More]

Dec 21, 2012 14:47

Increased restrictions on credit in recent years means that more banks and financial service providers will take your personal credit into account when assessing your business’s creditworthiness. Here is the 411 on personal, business and combined credit scores. [More]

Dec19

Private companies boost margins despite modest inflation Mary Ellen Biery [email] Research Specialist

Dec 19, 2012 18:35

Private-companies in the U.S. this year are more profitable now than at any point in the last decade despite slowing sales growth, according to a preliminary analysis of data from Sageworks. Their increasing profitability is impressive given the modest inflation seen at the producer level in recent years, as measured by the Producer Price Index. [More]

Dec 19, 2012 08:58

Building a strategic plan to properly handle communication throughout your institution during a merger is critical, says Lauren O’Connell, President of O’Connell Consulting Group. In this post, O’Connell discusses some things to keep in mind when creating your plan. [More]