Sageworks Blog

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]

Apr30

Resource for bankers: ALLL glossary Libby Bierman [email] Analyst

Apr 30, 2013 19:17

Sageworks released an allowance for loan and lease losses (ALLL) glossary, describing some of the terms most frequently cited in banking regulations and news. The ALLL glossary also includes additional resources that bankers can use to learn more about the allowance and its related terms. [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]

Jul 02, 2012 11:05

A strong collateral position supported by a current appraisal and appraisal review was the only available remedy, without facing troubled debt restructuring considerations, impairment analysis, and large increases in specific reserves. [More]