Category: 2014 Sessions

Current Financial Reporting Issues for Community Banks

Garry Rank | Shareholder | Elliott Davis The Financial Accounting Foundation Board of Trustees established the private Company Council (PCC) to improve the process of setting accounting standards for private companies. Elliott Davis’s Garry Rank suggests banks should invite a reputable CPA or public accounting firm, whether they are currently a vendor or not, on…

Read Article →
Justifying Q Factors

Dorsey Baskin | Managing Partner | Grant Thornton Brooks Brady | SVP ALLL | Zions Bancorporation Because they are more subjective than other aspects of the ALLL estimation, qualitative and environmental adjustment factors can be the most problematic. Essentially the role of the “Q” factor is to adjust the historical rate of loss for current…

Read Article →
Process Change

Sean Hutchins | Credit Administration/Special Assets | Pacific Western Bank Whenever a bank makes a significant change in its processes, whatever that might be, regulators and stakeholders will ask why. According to Sean Hutchins, whose bank recently completed a merger with an $8 billion bank, successful process changes as well as explaining those changes to…

Read Article →
The ALLL as a Management Tool

Dorsey Baskin | Managing Partner of Assurance Services Development | Grant Thornton, LLP Grant Thornton’s Dorsey Baskin has an idea. Noting that banks gather a tremendous amount of high-quality information at a substantial cost in order to calculate their ALLL, he suggests that banks can use that information to improve performance by correlating it to…

Read Article →
Migration Analysis: A Closer Look

Chris Emery | Senior Systems Engineer | MST Many banks are using some form of migration analysis to track and better understand the paths of loans that eventually experience loss or default. MST Senior Systems Engineer Chris Emery, who has been conducting migration analysis seminars and workshops, dove deeper into the process to discuss some…

Read Article →
Stress Testing

Nick Rossini | Director of Enterprise Risk Management | Yadkin Bank A community banker should not dismiss stress testing as purely a big bank activity. Supervisory guidance indicates stress testing is required of all banks with a significant concentration in certain loan types, such as commercial real estate, interest rate risk, and liquidity and funding…

Read Article →