Sageworks Blog

May17

FDIC officials: CECL implementation timeline unclear Mary Ellen Biery [email] Research Specialist

May 17, 2013 11:58

FDIC officialsencouraged financial institutions to provide feedback by May 31 on FASB's proposed new model for accounting for credit losses. Officials described some key differences between current practices and the proposed current expected credit losses, or CECL, model. They also outlined uncertainty surrounding when the changes might be implemented. [More]

Apr12

New call report Schedule RI-C due April 30 Mary Ellen Biery [email] Research Specialist

Apr 12, 2013 09:06

Financial institutions with at least $1 billion in assets must include a new report with their quarterly call reports due to the FDIC on April 30. Learn more about new disclosure reports and how banks are addressing challenges related to them. [More]

Mar14

Commercial lending bears watching Mary Ellen Biery [email] Research Specialist

Mar 14, 2013 08:58

Will the current growth in loans to businesses be good for the business of banks in the long run?

As financial institutions diversify their loan portfolios with increased commercial and industrial (C&I) loans, qualified business borrowers may be finding the climate advantageous. But regulators and banking risk management experts are cautious. [More]

Feb 05, 2013 08:32

Since more banks and credit unions have started to expand their C&I portfolios, the subtleties that come with C&I lending could expose banks to several, specific risks if they lack experience and resources. First, the new and different data sources. [More]

Feb04

Changes in bank portfolios & worried examiners Libby Bierman [email] Analyst

Feb 04, 2013 09:43

Before the financial crisis, many financial institutions, particularly community banks, were overweight in Commercial Real Estate loans (CRE) loans, and these concentrations turned out to be particularly risky for many banks; some did not survive as a result of this, notes Michael Lubansky, a director of consulting services at Sageworks.

Commercial loans as a percentage of total loans decreased following the recession when credit universally tightened, according to recent data from SNL Financial LC. [More]

Jan 23, 2013 09:14

While there may be revisions to the new risk-weighting proposal, it's evident that regulatory agencies will be soon making a change to how banks measure risk, particularly risk in the portfolio.

To prepare, financial institutions should ask the following questions: [More]

Jan21

Risk-weighted assets, regulators' stiff proposal Libby Bierman [email] Analyst

Jan 21, 2013 16:41

Despite regulatory delays, it's likely that banks will be required to report appropriately how their institutions’ risk correlates with their given capital. It's critical that banks begin to plan for changes to capital requirements, and a good place to begin planning is with the institutions’ methodology for risk-weighting. [More]

Jan14

Bank examiners eye underwriting standards Mary Ellen Biery [email] Research Specialist

Jan 14, 2013 14:06

Federal bank examiners are closely monitoring whether banks and thrifts are loosening underwriting standards or moving into unfamiliar geographic areas or product lines, the Comptroller of the Currency said recently. [More]

Nov 28, 2012 16:26

The U.S. Senate could take up legislation to extend the FDIC’s Transaction Account Guarantee program for two years. The Wall Street Journal reports Sen. Harry Reid has introduced a bill to continue a program that has provided unlimited guarantees for non-interest bearing transaction accounts such as payroll. [More]

Nov 26, 2012 13:48

Basel III can be a touchy subject for community banks and rightfully so given the new requirements with which they’d have to comply if Basel III is implemented for these banks. [More]