Category Archives: Financial Lending Notes Newsletter

An estimated $700 billion in commercial mortgages is set to reach maturity over the next few years, and many of these properties have declined significantly in value. This represents a ticking time bomb that could put these companies at substantial … Continue reading →

For most companies in the financial services industry, the past few years have been all about survival. This includes community banks, many of which have been forced to hunker down and play defense rather than go out and aggressively seek … Continue reading →

Last fall, our lead article in this newsletter detailed the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that would have the biggest impact on community banks. Since then, there has been a lot of discussion in … Continue reading →

In December, federal financial regulators adopted the appraisal and evaluation guidelines that were originally issued for public comment in 2008. These new guidelines were issued in response to heightened concerns that arose regarding collateral appraisals and credit quality in the aftermath of the financial crisis. Continue reading →

On July 21, a banking regulation on the books for nearly a century and considered by many to be one of the most antiquated laws will finally be repealed. That’s the date when Reg Q, which has prohibited banks from paying interest on commercial demand deposit accounts since the Great Depression, will officially become part of the history books. The repeal of Req Q comes courtesy of the Dodd-Frank financial reform bill passed last summer. The big question now is what will be the impact of this repeal on community banks? Continue reading →

Last July, the FASB issued new disclosure guidance significantly expanding existing financial statement reporting requirements for both public and private companies in the U.S. ASU 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses, is effective for both interim and annual reporting periods ending after December 15, 2010, for public companies and after December 15, 2011, for private companies. Continue reading →

Banks today are continuing to deal with a high volume of substandard and problem loans. Part of the process of dealing with these loans is testing them for impairment. ASC 310-40 requires loans to be tested for impairment if the bank determines, based on the facts and circumstances surrounding the local market, the loan won’t be re-paid in accordance with the contracted terms and conditions. Continue reading →

Nearly three years after the onset of a financial crisis that will be remembered as one of the worst in our nation’s history, many banks are still dealing with the ongoing fallout. They continue to face rising levels of delinquencies, substandard loans and problem credits in their commercial loan portfolios. Continue reading →