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To our valued clients and friends,
While the past few years have been difficult for banks, there have been some encouraging economic signs so far in 2012. Given this, many banks are resuming more aggressive marketing and new business development efforts. This includes targeting niche markets for small business lending, such as non-profit institutions and professional practices. Our lead article in this issue offers some suggestions for taking advantage of new lending opportunities in these niches.
When the Dodd-Frank Wall Street Reform and Consumer Protection Act was first passed in the summer of 2010, some opined that it sounded the death-knell for community banks. Nearly two years have passed since Dodd-Frank became law, making now a good time to reassess the question: What will Dodd-Frank mean for community banks? Turn to the second article for some possible answers.
Last spring, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-02 to help clarify and offer guidance in how financial institutions determine which loan modifications constitute a troubled debt restructure (or TDR). The standards update is effective for annual periods ending on or after December 15, 2012, for non-public entities - see article three for more details.
We hope that you find this issue of Financial Lending Notes to be helpful and beneficial to your company. If you would like more information on any of the topics mentioned here, we would be glad to discuss them with you in more detail.
Sincerely,
Tom Beisner, CPA, Partner |
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Putting Loans on the Books - Targeting Nonprofits and Medical Practices |
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The past few years have been a difficult period for banks - perhaps the most difficult since the Great Depression. In 2012, there have been some encouraging signs, for the broad economy and for community banks in particular. Many banks are starting to peek their heads out from beneath their shells and resume more aggressive marketing and new business development efforts that have been shelved the past few years while they hunkered down in survival mode. Read more... |
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The Impact of Financial Reform - Are Community Banks an Endangered Species? |
When the Dodd-Frank Wall Street Reform and Consumer Protection Act was first passed there was a lot of speculation about what impact the wide-ranging legislation might have on the community banking industry. Some pundits opined that Dodd-Frank sounded the death-knell for community banks by raising capital and equity requirements, increasing regulatory burdens and costs and limiting how much banks can charge merchants in interchange fees, thus lowering non-interest fee income. Read more... |
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FASB Offers Guidance on TDRs |
Efforts by financial institutions over the past couple of years to modify loan terms for some small business and commercial real estate borrowers have often resulted in the creation of troubled debt restructures, or TDRs. In order for a loan modification to be considered a TDR, two specific conditions must be present. Read more... |
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About Us |
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The Whitlock Company is a full-service accounting firm offering a range of audit, tax, technology, risk management and consulting services to the community banking industry.
The experiences our professionals have gained from these relationships allow us to offer you best practice ideas on business issues specific to community banks.
We appreciate your referrals. If you know of a company, organization or individual who may benefit from our services, please let us know.
www.whitlockco.com / 417.881.0145 |
