December 2014
Loan Agreements and Debt Covenants

 

Many community bankers would agree loan agreements and debt covenants are important tools for monitoring the status of loans and the activities of small business borrowers. Even though they are widely known as great tools, loan agreements and debt covenants are underutilized by community banks. Worse yet, many community banks are failing to monitor the loan agreements they have put in place. Read more here...
Classifying and Complying with TDRs

 

In a time of financial crisis many community banks had to work with borrowers to restructure their small business and commercial real estate loans so the customer had the ability to make the payments. After the most recent financial crisis banks had to modify loan terms and grant concessions. These actions are creating troubled debt restructures (TDRs) which is something that must be segregated on a bank's financial statements and call reports. Read more here...
Deferred Tax Assets and NOL Carryforwards

 

When examining loan applications of potential small business borrowers, it's important for lenders to consider the potential impact of deferred tax assets on a business' financial performance. Many companies that have experienced recent losses are now utilizing deferred tax assets in the form of net operating loss (NOL) carryforwards. These can be carried forward for up to 20 years and back for up to two years. Read more here...
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
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