Tag Archives: Community Banking
Commercial Lending: Deferred Tax Assets. The Good and the Bad.
When examining potential borrowers’ financial statements, some lenders are beginning to see something that’s unfamiliar to many of them: deferred tax assets. These are created as a result of timing differences that occur between book and taxable income for things such as depreciation and investment gains and losses.
With more companies experiencing losses the past couple of years due to the recession, many are setting up deferred tax assets associated with their operating loss carryforwards in their financial statements. And there are many others that aren’t recording these deferred tax assets, but should be. Continue reading
Hot Points For Your Next IT Exam
Our IT Security Specialist Chris Griesemer’s recent presentation at the Lunch’Learn – Technical Audits, Security and Best Practices in Finance and Banking seminar covered important points for financial institutions. Continue reading
Did The Repeal Of Glass-Steagall Contribute To The Financial Meltdown?
As a consultant to community banks, I was excited when Glass-Steagall was repealed in 1999. I saw it as an opportunity for community banks to offer additional services to their current customers and to find additional revenue sources to build value for their owners. What I didn’t see was how the large banks would be able to leverage FDIC insured deposits to make risky investments in CDO’s and CMO’s that would ultimately lead to the financial meltdown nine years later. Continue reading
Deferred Tax Assets For Banks May Be Questioned By Regulators
Deferred tax assets on a bank’s balance sheets have always been a problem for regulators. Most of the deferred tax assets are currently disallowed for capital purposes. And now with banks piling up losses and creating deferred tax assets due to net operating loss carryovers regulators are taking a harder look at these assets. Writedowns of these assets are expected and will more likely hurt regional and community banks.
Posted in Community Banking, Regulatory Issues, Tax
Tagged Community Banking, Deferred Tax, Tax
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First Research Publishes Quarterly Update For Banks
As a member of PKF, an association of almost 100 legally independently accounting and consulting practices with offices throughout North America, we have access to all of First Research’s quarterly updates for many different industries. Here is the most recent update for banks and credit unions: First Research Banks and Credit Unions Quarterly Update.
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Thomas Jefferson’s Top 10 Quotes On Money And Banking
Nothing ever changes. Thomas Jefferson was criticizing big banks at the beginning of our history…
From the Daily Bail, a website devoted to bailout news, opinion and analysis:
Can We Party like it’s 1776 and Just Start Over? Thomas Jefferson’s Top 10 Quotes on Money and Banking
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Posted in Community Banking, Regulatory Issues
Tagged Community Banking, Regulatory Issues
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Commercial Lending…After The Crisis: Back To Basics
Now that we have digested the fact that most banks’ loan portfolios are weaker today than they were two years ago, it’s a good time to review a few of the basics of commercial lending.
(Unofficial) Problem Bank List
I found this list of problem banks published by www.calculatedriskblog.com. This list is sortable and even includes the type of Enforcement Action, the reason and the agency. Continue reading
Posted in Community Banking, Regulatory Issues
Tagged Community Banking, Regulatory Issues
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Consumer Financial Protection Agency A Bad Idea!
The American Bankers Association (ABA) and most bankers believe that the creation of a new regulatory agency to oversee consumer protection is a bad idea. The ABA on it’s website is “asking all bankers to contact their Members of Congress to let them know that creating creating a new consumer agency is not the solution. It would only complicate our existing regulatory structure by adding another layer of bureacuracy with no guarantee of better consumer protection.” Continue reading
Posted in Community Banking, Regulatory Issues
Tagged Community Banking, Regulatory Issues
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Thinking Of Switching Bank Charters? Think Again
The FFIEC just issued Statement on Regulatory Conversions that will make it harder for financial institutions subject to enforcement actions to switch charters. Continue reading
Posted in Community Banking, Regulatory Issues
Tagged Community Banking, Regulatory Issues
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