RSM McGladrey : Bank Notes

Mandatory Compliance Date for Regulation E Approaching

(March/April 2010) A timely information andidea statement Consumers will now have a choice regarding their institution’s payment of certain overdrafts. A final rule was issued under Regulation E on Nov.12, 2009 and has a mandatory compliance date of July 1, 2010 The highlight of the rule requires consumers to...

Tax Consequences of Amounts Received by the Acquiring Bank in an FDIC Assisted Transaction

(March/April 2010) A timely information andidea statement Tax consequences should be a consideration before entering into an acquisition of a financially troubled institution as most of the transactions will be treated as taxable asset acquisitions These transactions can result in significantly different book and...

Could Your Technology Strategy Lead to Legal Action

(March/April 2010) A timely information andidea statement ? Every day it seems like we see a new threat facing the banking industry and chances are increasing that your technology could possibly land you in court. While economic conditions present significant challenges, computer crime is a growth industry and...

S Corporation Banks Win in Vainisi Case

(March/April 2010) A timely information andidea statement The 7th Circuit Court of Appeals ruled in favor of subchapter S corporation bank’s treatment of Section 291 interest expense disallowance. The court upheld the interpretation of Internal Revenue Code Section 1363(b)(4) which states ‛the taxable...

Due Diligence Considerations for Bank Mergers and Acquisitions

(January/February 2010) A timely information andidea statement Banking organizations today are faced with a variety of challenges. All parts of the country are faced with challenging economic conditions with some geographic areas impacted more than others. In addition, the regulatory landscape is creating more obstacles...

Year-End Tax Considerations

(January/February 2010) A timely information andidea statement There are several tax-related rulings that have taken on increased significance for financial institutions and have created potential planning opportunities as well as obstacles. It would be beneficial to familiarize yourself with the following issues to help...

Issues for Financial Institutions in 2010

(January/February 2010) A timely information andidea statement The financial landscape continued to change during 2009. There were some potential bright spots in the financial marketplace that took some of the sting out of continuing problem areas such as housing prices, foreclosures, commercial real estate and...

New Tax Planning Opportunities for Financial Institutions

(November/December 2009) A timely information andidea statement The American Recovery and Reinvestment Act of 2009, signed into law on Feb. 17, 2009, provides several tax planning opportunities that financial institutions should consider before the end of the year. Additionally, the impact of the law changes and planning...

The Effect of FAS 141R on Bargain Purchases

(November/December 2009) A timely information andidea statement FAS 141R (Accounting Standards Codification 805)changed the method of accounting for business combinations. FAS 141R, is effective for business combinations with acquisition dates that occur in annual reporting periods beginning on or after Dec. 15, 2008. FAS...

Year End Accounting Update for Financial Institutions

(November/December 2009) A timely information andidea statement There are a number of new accounting standards that will have accounting and reporting implications for banks in 2009 and/or shortly thereafter. The following highlights some of the more impactful recently issued standards. Accounting Standards Codification...

FDIC Amends Independent Audit and Reporting Requirements

(September/October 2009) A timely information andidea statement On June 23, 2009, the FDIC released a final rule amending Part 363 relating to the annual audit and reporting requirements for certain insured depository institutions Currently, Part 363 requires banks with over $500 million in total assets to submit two...

Changes to Your IT Strategy can Lead to Greater Data Protection and Performance

(September/October 2009) A timely information andidea statement The efficiency and security of information technology systems is a chief concern among bank executives, as an institution could suffer significant consequences from just one system failure. A down server or virus attack could result in disorder, leading to a...

Enhanced Supervisory Procedures for Newly Insured FDIC Supervised Depository Institutions

(September/October 2009) A timely information andidea statement Enhanced Supervisory Procedures for Newly Insured FDIC-Supervised Depository Institutions On Aug. 28, 2009 the FDIC issued Financial Institution Letter FIL-50-2009 (the FIL) which increases the regulatory oversight for state nonmember institutions during the...

New Executive Compensation Regulations for Capital Purchase Program Participants

(September/October 2009) A timely information andidea statement Institutions that participate in the Capital Purchase Program (CPP) under the Troubled Asset Relief Program (TARP) must be in compliance with new executive compensation standards that they may not be familiar with The American Recovery and Reinvestment Act of...

Can Growth be a Problem?

(July/August 2009) A timely information andidea statement Most banks (this term includes all depository institutions) look very similar on paper. They all have cash and due from banks, loans, investments, deposits and payroll. They all file similar quarterly reports with their primary regulator that contains a great...

The Bank CEO Network A Valuable Resource for Community Bank Executives

(July/August 2009) A timely information andidea statement The Bank CEO Network: A Valuable Resource for Community Bank Executives Community bank CEOs are continually looking for methods to improve their performance and operations The Bank CEO Network, founded in 1992 by former McGladrey & Pullen Partner Jim...

Bank Recovery Strategy Webinar Series

(July/August 2009) A timely information andidea statement RSM McGladrey, legal firm Barack Ferrazano and brokerage firm Howe Barnes Hoefer & Arnett are pleased to present the to provide insights into the latest issues affecting financial institutions. The inaugural presentation was held on May 19, as RSM...

Storage Area Networking - Extending the capabilities of your existing technology investments

(May/June 2009) A timely information andidea statement Storage Area Networking - Extending the Capabilities of Your Existing Technology Investments Most of us have overheard the term ‛storage“ and understand it to be technology that allows us to store electronic documents. Sounds a lot like a hard...

Give your BSA Officer their weekend back

(May/June 2009) A timely information andidea statement Give Your BSA Officer Their Weekend Back Without question, financial institution’s BSA obligations have grown, particularly in regard to transaction monitoring. BSA Officers have been working harder, but trouble spots remain that require smarter...

Challenges facing community banks - Part II

(May/June 2009) A timely information andidea statement Challenges Facing Community Banks - Part II As of April 17, 2009, the number of bank failures in 2009 has increased to 25, matching the total for all of 2008. The current economic conditions and uncertain outlook have undoubtedly led to a realignment of...

Six key implications for banks implementing SFAS 141R beginning in 2009

(March/April 2009) A timely information andidea statement Six key implications for banks implementing SFAS 141R beginning in 2009 The Financial Accounting Standards Board (FASB) issued a new standard in late 2007 that affects how virtually all companies will account for mergers and acquisitions (M&A) of...

Challenges facing community banks - Part I

(March/April 2009) A timely information andidea statement Challenges facing community banks - Part I The FDIC recently released its Quarterly Banking Profile for the fourth quarter of 2008 and it notes: "industry posts $26.2 billion quarterly loss"; "asset quality indicators show further deterioration";...

Recent developments for FDICIA banks

(November/December 2008) Part 363 of the FDIC's regulations are generally intended to facilitate early identification of problems in financial management of insured depository institutions with assets above certain thresholds through the following:1. Annual independent audits of the financial statements2. Assessments of...

Virtual servers: The next operational advancement for community banks?

(November/December 2008) Community banking is the personification of business built on personal relationships. However, toiling away behind these relationships are the technologies necessary for fulfilling client service excellence - prompt and reliable distribution of desired products and services. If your organization...

Causes and effects of the U.S. financial crisis of 2008: From Wall Street to Main Street

(September/October 2008) The unfolding financial crisis signals a seismic shift in the foundation of the U.S. financial system. While some have dubbed recent developments "Financial Armageddon", there is little question we are witnessing the greatest strain on our economy since the Wall Street Crash of 1929. What started...

How to reduce business interruptions and maximize your bank's network availability

(September/October 2008) In today's business world, almost 98 percent of all businesses - including banks - are negatively affected by unplanned downtime associated with technology (Source: International Data Corporation). Most companies are aware that increasing efficiency and productivity, expediting the time-to-market...

Tech check: Are you managing your capabilities gap?

(May/June 2008) Most process improvement experts in the banking industry agree that an estimated 20 percent to 60 percent of technology systems capabilities go unused. The difference in the perceived and the actual capabilities available - known as the technology applications systems gap - can have a negative...

Actions your community bank can take during economic uncertainty

(May/June 2008) We all understand that the U.S. economy is facing some substantial challenges - large bank asset write - downs, weak housing markets, high oil prices, devalued dollar, stock market volatility - to name a few. Given all that bad news, what should community bankers do during these difficult economic...

ATM network security: Be sure your financial institute is in compliance

(May/June 2008) Does your bank have an ATM network contract with STAR or Pulse? Do you own or drive your ATMs? If so, you need to have certified TG-3 auditors perform your required TG-3 compliance review and protect your status as an authorized member of your ATM network. (Note: The TG-3 review should be...

Restricted stock as a benefit plan

(March/April 2008) Using equity instruments as a form of compensation has been a long standing method of providing incentive and other benefit packages to executive management. However, there?s an alternative to stock option plans: Restricted stock. What is restricted stock?Restricted stock is a grant of company...

New accounting pronouncement impacts mergers and acquisitions

(March/April 2008) If your bank or thrift is considering acquisitions to build stockholder value and market penetration, you?ll need to understand how Financial Accounting Standards Board Statement No. 141 R (FAS 141R) will change the accounting treatment. FAS 141R becomes effective for acquisitions consummated on...

The FDIC proposes to amend Part 363 to reflect changes in the industry

(March/April 2008) The FDIC has proposed amendments to Part 363 of its regulations (FDICIA rules) relating to annual independent audit and reporting requirements for insured institutions with $500 million or more in total assets. The amendments follow the corporate governance and audit committee rules of the...

FASB accounting standard could create surprises for community banks

(January/February 2008) Jan/Feb 2008 The Financial Accounting Standards Board issued its Fair Value Measurements Statement No. 157 (FAS 157) in the fall of 2006. The objectives of FAS 157 include creating a single definition of fair value, establishing a framework for fair value and expanding disclosures about fair value...

Be a fearless - not a fearful - leader

(January/February 2008) Jan/Feb 2008 "The only thing we have to fear is fear itself." This famous quote from Franklin Roosevelt speaks as clearly to leaders today as it did in the 1940s. In their book, Play to Win , Larry and Hersch Wilson present psychologist Maxie Maultsby?s concept of the Four Fatal Fears. Maultsby...

Does your bank have sufficient liquidity?

(January/February 2008) Jan/Feb 2008 According to an article in the most recent FDIC Supervisory Insights, liquidity analysis and risk assessment for financial institutions has become more complex in the last 15 years. Why? Changes in funding. Insufficient liquidity could cause a bank to fail, making liquidity a...

Structure your bank to maximize effective operations and customer service

(November/December 2007) There are few things more basic to any financial institution than its organization structure. Who reports to whom? Where within the organization are tasks performed? With these basics clearly understood, a bank can operate effectively and provide a high degree of customer service. Without that...

Don't let your bank be used for money laundering or terrorist financing

(November/December 2007) Did you know that on Aug. 24, 2007, the FFIEC released a revised BSA/AML Examination Manual? The regulations are unchanged; however, the enhanced guidance ( www.ffiec.gov/pdf/bsa_aml_examination_manual2007.pdf ) will help BSA Officers augment internal controls to meet regulator...

How to implement enterprise risk management in small banks

(November/December 2007) Enterprise risk management (ERM) has long been a buzzword. Small banks, limited by size and resources, have struggled to address the concept. But it isn't as daunting as it seems. Banks already understand the notion of internal controls and...

Could state-level court cases affect your bank?

(September/October 2007) Recently, two court cases - of particular interest to banks and their shareholders - were appealed to the U.S. Supreme Court. Both involve interpretation of the commerce clause. Kentucky Davis v. Department of...

Industry briefs

(September/October 2007) Banks ask Pentagon to ease military personnel loan lawBanking trade groups want the Pentagon to narrowly apply a law that caps interest rates and fees on military personnel to payday loans only and not to other credit services. Congress recently passed legislation that imposes a 36 percent cap on...

Financial literacy: Does your audit committee have it?

(September/October 2007) The intention of 1999?s "Report and Recommendations of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees" (Blue Ribbon Report) was to produce changes in the functions and expectations placed on boards of directors, audit committees, senior management, internal...

Tips for developing the allowance for loan and lease losses

(July/August 2007) In the past, significant guidance has been issued affecting the allowance for loan and lease losses (ALLL), but the direction was often inconsistent. After years of debate, the federal financial regulatory agencies recently released an interagency policy statement on the ALLL. However, it...

Survey says: What are the emerging employee retention practices?

(July/August 2007) As the economy improves and the talent pool shrinks, organizations are continually seeking ways to effectively identify, motivate and reward key contributors. Compensation and benefits have always been one of the top five reasons employees seek other opportunities. To offset this trend,...

Industry Briefs

(July/August 2007) - The Federal Reserve Board has requested comments on new regulations designed to give credit card customers better and more useful information about their accounts. Banking groups are reviewing the proposal, but feel the regulation is timely given the importance of credit cards and the rapid...

Ten years after: What's next for S corporation banks?

(May/June 2007) It's been 10 years since banks became eligible to elect S corporation status ? and those that initially converted to this structure are approaching the end of built-in gain exposure. This change could affect the bank-acquisition marketplace in a variety of ways. An S corporation isn?t typically...

Industry briefs

(May/June 2007) Number of ID theft victims ? and amount stolen ? is on the riseA new Gartner study shows identity theft is exploding in the United States,with 15 million Americans victimized during 2006, and the amount of money stolen more than doubling between 2005 and 2006. Less of what is stolen is being...

Three paths to anti-money laundering monitoring

(May/June 2007) When it comes to detecting suspicious activities - and deciding where to focus efforts - many financial institutions struggle with the complexities of the Bank Secrecy Act and USA Patriot Act, as well as the Federal Financial Institutions Examination Council's examination procedures. So, what can...

How solid is your executive compensation program? Your bank's success could depend on it

(March/April 2007) It's no secret that the success of any bank depends on the performance of its key executives. And to ensure a high-quality executive team, a sound executive compensation program is essential.When putting together your executive compensation program, remember that long-term incentives play an...

Managing CRE concentration risk: Regulators likely to enforce heightened risk management practices

(March/April 2007) Managing CRE concentration risk: Regulators likely to enforce heightened risk manage practices Regulatory agencies recently issued a statement of policy related to commercial real estate (CRE) lending activities in banks. The purpose of the statement is to define CRE concentration limits, as well...

Industry briefs

(March/April 2007) Community banks see new business in remote captureSome 16 percent of community banks offer remote deposit capture of checks to business customers, and nearly one-third of these say they have adopted the electronic check technology as "an essential survival strategy," according to a survey by the...

Is your bank in compliance with new internal audit standards?

(January/February 2007) Over the past several years most community banks have sought to establish an internal audit function, either in-house or through outsourcing. Whether regulatory requirements or awareness of the importance of internal controls is behind this initiative, the banking industry has led the pack in...

Monitor asset quality to keep credit risk on target

(January/February 2007) The third-quarter 2006 FDIC Banking Profile reported signs of weakening asset quality. That weakness was most apparent in the construction and development lending area, while past-due commercial and industrial loans rose 6.7 percent. The FDIC update indicated that the allowance for loan losses...

Industry Briefs

(January/February 2007) Cell phone banking expected to grow during 2007Synovus, a midsized bank and insurance company in the Southeast, plans to allow select customers the opportunity to do mobile banking by the second quarter of next year, with a broader rollout later. It will initially provide bill viewing, bill...