Sageworks Blog

Mar20

Need a Bank Loan? Fuhgeddaboutit! Mary Ellen Biery [email] Research Specialist

Mar 20, 2013 17:53

Businesses still face challenges accessing capital, writes CEO coach and McCracken Alliance partner John Calia. In this guest column, Calia discusses some of the factors affecting commercial lending and offers advice on planning for a request for capital. [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]

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]

Dec 18, 2012 12:39

Starting with the financial crisis, there has been a decided shift in the lending environment. Banks and credit unions with commercial lending have turned away from Commercial Real Estate loans (CRE) in favor of Commercial and Industrial Loans (C&I). How should banks prepare? Would a probability of default model ease the transition? [More]

Oct 04, 2012 13:09

For the average banker, the word "camels" may evoke the image of the beloved, desert-living transportation device, but it could also evoke memories of their institution’s last regulatory exam. The “CAMELS rating” is a measure of a financial institution’s riskiness based on the bank’s financial statements. [More]

Jul 16, 2012 10:02

Why do banks need a strategic plan? There are numerous reasons, but the best one is that banks that plan well and execute their plans are better organizations. In part I of this guest post, financial services consultants John Owens and David Harrop begin to describe 10 key components of a strategic plan. [More]

Jun 26, 2012 10:04

A Sageworks roundup of recent banking industry news: Basel III impact; Regional lenders gain ground; Supervisory agencies coordinate; The decline of independent community banks. [More]

Jun 22, 2012 07:51

As the banking industry continues its recovery, industry experts are monitoring merger and acquisition activity to better understand what the banking landscape will look like in years to come. Will M&A continue and in what form? [More]

May 22, 2012 07:51

As memberships in U.S. credit unions have grown, many institutions are expanding their offerings to include member business loans. Whether it’s a credit union making this move for the first time, or a bank diving deeper into commercial lending, I find that institutions encounter several common “hot-button” issues associated with commercial lending. One common “hot-button” issue has to do with handling the documentation associated with commercial loans. Commercial lenders must balance customer service issues with the need to have detailed documentation to keep compliance officers and examiners happy. [More]

May 21, 2012 14:18

A Sageworks roundup of recent industry news: Chase sees positive signs among business banking customers. Financial services’ 2011 CEO compensation down 0.6 percent – survey. Mixed results from banks with business-lending-only offices. [More]