FBLG Banking Letter - November 2017 Edition

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.


Potential Simplifications to Capital Rules

Andrew A. Marshall, CPA

In late October, the Office of the Comptroller of the Currency (OCC) released OCC Bulletin 2017-47 – Simplifications to the Capital Rule. The proposed rules would include changes to high-volatility commercial real estate, mortgage servicing assets, temporary difference deferred tax assets, holdings of regulatory capital instruments issued by other financial institutions, and minority interest limitations.

To read more, click here.

Stock Compensation Changes Going Into Effect

Charles F. Tolen

As a reminder, ASU 2016-09 Compensation – Stock Compensation will go into effect for all companies beginning with annual periods subsequent to December 15, 2017. The most impactful changes of the new standard will affect the accounting for income taxes related to stock awards, as well as providing two accounting policy-change elections to nonpublic entities. Some of the changes are summarized below.

To read more, click here.

Renewing Commercial Real Estate Loans

Val Stark

Bankers often ask us the following question:

”When a commercial real estate loan is being renewed and has not met the original objectives (spec that hasn’t sold, development project stalls, etc.), what items need to be considered when renewing the credit?”

There are four primary factors that should be considered: 1. Income levels and sources; 2. Principal pay-downs or curtailments; 3. Available liquidity and 4. Amortization.

To read more, click here.