Financial Services
Cherry Bekaert Presents at North Carolina Bankers Association
Cherry Bekaert LLP presented at the North Carolina Bankers Association 2013 Bank Directors Assembly on March 4-5 and delivered an informative discussion centered on AS 16 “Communications with Audit Committees,” which establishes new auditing standards and requirements that enhance the relevance and quality of the communications between the auditor and the audit committee, and is intended to foster constructive dialogue between the two on significant audit and financial statement matters. For more information about this topic or the Audit Committee Communication presentation, please contact Cid Hickman, partner and Financial Services Group leader with Cherry Bekaert LLP. He can be reached. Read More.
Economy, Business Combinations and Impact on Financial Institution Acquisitions
(ASU 2012-06)
The financial crisis of 2008 led to a chain of events which included unprecedented provisions for loan losses, charge-offs of loan balances, and foreclosures of real estate by many national, super-regional, regional and community banks. The significant decline in operating performance of financial institutions led to the erosion of many financial institution’s capital positions (basically shareholder’s equity). The impact of the financial crisis increased regulatory scrutiny to the point that there have been historical highs in the number of financial institutions taken under receivership by the FDIC as it was deemed the financial institutions were unable to manage themselves out. Read More.
Accounting & Industry Update
Cherry Bekaert’s Financial Services Group has prepared an Accounting & Industry Update , which covers a wide range of timely topics. If you would like additional information about this Update or the Firm’s Financial Services Group, please contact Todd Batchelor or Cid Hickman .
The Potential Impact of Proposed Lease Accounting Rules on Creditor Financial Statements
The Financial Accounting Standards Board (“FASB”) is in the process of deliberating significant changes to the accounting rules regarding leases. If approved, this new lease accounting guidance would require U.S. companies to record in their balance sheets as much as $2 trillion in additional debt by some estimates. The proposed model, which is not yet effective, would have significant implications for any business that leases equipment or real property. Should the new guidance be approved, it will introduce a right-to-use model. This model will require companies to record in their balance sheets estimated liabilities associated with the obligation to make. Read More.
Curry Warns Banks About Reserve Levels
Comptroller of the Currency Thomas Curry has expressed concern that too many banks are reducing their allowances for loan and lease losses solely to boost earnings… The OCC is watching reserves very closely.. It is ready to take action if the institutions it supervises are not maintaining reserves at appropriate levels… “One of the clear lessons of the financial crisis is that loan loss allowances that are appropriately set can help financial institutions ride out even the worst storms,” Curry said… “We … believe it is important that national banks and federal thrifts bring judgment to bear in setting those reserves,. Read More.
The Allowance for Loan Losses and Current Credit Trends and How It Directly Impacts Financial Services Organizations
Cherry Bekaert presented at the North Carolina Bankers Association 2012 CFO Conference in September and delivered an informative discussion centered on Allowance for Loan and Lease Losses (“ALLL”) and current credit trends. Areas covered during the presentation including the ALLL Framework; modeling challenges and risks; as well as identification and measurement of impaired loans; and troubled debt restructuring. We believe this presentation and industry topics will lend important and valuable information to you and your bank. A link below is provided to access and download the PDF document. For Download: PPT_NCBA_CFO_Symposium-FINAL