FBLG Banking Letter - February 2018 Edition

New Corporate Net Operating Loss Tax Provisions

Joseph M. Press, CPA, CFE

It seems most every time Congress takes up any kind of tax legislation, a change in the net operating loss rules is required.  The recently passed Tax Cuts and Jobs Act is no exception.

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Threat Pattern Evolution and Testing

Keith A. Ferguson, CISSIP, CISA, CRISC

A threat pattern is not set in stone and a pattern that works effectively today may become obsolete over time. Types of threats, tools used, tactics and procedures evolve over time, as do business requirements and banks risk tolerance levels.

Because of the changes it is important to review each pattern periodically, define criteria for periodic evaluation ensuring this is targeted to a broad spectrum of potential threats, and ensure the results continue to align with business and risk objectives.

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How to Properly Transition from Paper Files to a Loan Imaging System

Val Stark

Loan imaging systems make day-to-day operations more efficient and are popular with our banking clients, the majority of whom have already embraced paperless files or are in the process of transitioning. Paperless files are accessible from any location, which is helpful for banks with multiple branches. Furthermore, you can purge cumbersome files and archive outdated financial information.

But for all the benefits, transitioning to a loan imaging system can be daunting. We have witnessed banks successfully implement loan imaging systems and others that struggled throughout the entire process. If your bank is considering a loan imaging system there are three key elements to bear in mind to ensure your bank is successful from beginning to end. 

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Deductibility of Employee Achievement Awards under the New Tax Law 

Mark J. Corey, CPA, JD

Employers have always been fond of awarding their employees for milestone achievements like hitting a certain length of service, achieving a safety goal or other similar awards.  As part of the new tax reform law (Tax Cuts and Jobs Act of 2017) Congress changed the rules on the deductibility of these expenses by businesses.

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Credit Monitoring and Management

Daniel R. McDonald

After a credit decision has been made, the ability to collect on the loan may rest on the accuracy and completeness of on-going credit management and monitoring, specifically by the loan officers. 

Lenders can improve customer relationships by spending time with their clients and obtain a better understanding as to the “whys” as they relate to the financial position of the individual business, as well as understand the financial trends which may lead to early warning indicators and identifying potential weaknesses

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2017 Independent Bank Compensation Survey (Results Available Now)

We have completed our 29th annual Independent Bank Compensation Survey.  The 2017 survey is based on 244 responses from community banks in 34 states.  This survey provides valuable compensation information, including:

  •  Your bank’s executive staff along with key operations, lending, IT and compliance positions.
  •  Average compensation levels for branch managers, teller, customer service and other positions.
  •  Directors’ compensation including both inside and outside directors.
  •  Information regarding bonus and benefit plans and health insurance programs.

Also, we would be happy to make available to you a set of Customized Survey Results.  These reports will include average and median values for banks comparable to your bank. All of our reports are free of charge.

To access the report on our 2017 Independent Bank Compensation Survey and/or to input your bank’s demographic information for Customized Survey Results, simply click here.