TOPIC: Small Banks

De Novo Banks vs. FinTechs: What do you think the future of start up banks will be?

Hi Everyone,
Did you get a chance to see Jelena McWilliams, Chairman of the FDIC speech last week?
If not here it is https://www.fdic.gov/news/news/speeches/spmar1419.html. We found the part about De Novo Banks the most interesting. Only 2 were created from 2010-2016. Do you think the initiatives are enough on the FDIC’s part to help to create more banks, or do you think Fintechs are going to be the new banks? What are your thoughts?

    2019 CECL Survey - Chance to win a $300 Yeti cooler!

    Each year MST, now Abrigo, has been implementing an allowance survey. This year we’re asking about your progress in the CECL transition, how you are preparing and what you are determining in terms of how CECL will impact your institution. As always, we’ll compile answers and share the results so you can compare what you are doing with your peers. We encourage you to participate. As a token of our appreciation, you will have the chance to win a $300 Yeti cooler or a Bluetooth speaker.

    We wish you a productive and profitable 2019!

    Take the survey: https://www.surveymonkey.com/r/J236LTW

      Having trouble keeping up with all these CECL updates?

      CECL is in the news a LOT now that we're less than a year out from the transition. Robert Ashbaugh and Chris Emery are making sure your financial institution understands all of the recent changes and the ways that those changes and proposals might affect your institution's CECL implementation. Tune in for our free webinar in two weeks -- get registered here: http://bit.ly/2GrF1mr

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        Free eBook: Agile Bankers - How Community Banks are Addressing Disruption, Risk and Growth

        With an increased regulatory burden and limited spending power, many community banks face disproportionate challenges compared to large and online-only financial institutions. Sageworks compiled a collection of interviews with its Client Advisory Board which revealed shared pain points, from technology disruption and compliance issues to challenges tied to portfolio and staff growth.

        The free ebook, “Agile Bankers: How Community Banks are Addressing Disruption, Risk and Growth,” provides an inside look into how executives from institutions are approaching pressing dilemmas heading into 2019.

        Download for free here: https://www.sageworks.com/resources/agile-bankers-ebook

          Webinar: Interpreting CECL Modeling Results

          For those who are currently building out their CECL models, did your results not match your expectations? Are you confused on what to do next?

          Join us on Monday, December 10th from 1:30-2:30 p.m. ET. for an interactive walkthrough of common modeling problems and questions. Common questions include:

          • What happens if I don’t have enough loan-level historical data?
          • What do I do if my results are zero?
          • Are there shortcuts for anticipating when certain approaches won’t work before building models to test?

          Sageworks risk management consultants Brandon Quinones and Danny Sharman will answer these questions and discuss how results can be interpreted and pivoted to other approaches that may provide more transparent outcomes.

          Register now: https://web.sageworks.com/interpreting-cecl-results/

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            Keys to a data-driven banking world for smaller FIs

            Big banks mine customer data all day long for business insights, but many smaller banks either do not or don’t know how to leverage what they have. It's important to know how to use customer data to not only win new business but to also understand existing customers better and deepen those relationships.

            Next Tuesday, Nov 13 @ 1:30-2:30 pm ET Sageworks is hosting a free webinar explaining important trends in banking data, hurdles for data analytics adoption and types of data points your institution should be looking at: http://bit.ly/2Af9zod

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              Whitepaper: CECL amortized cost basis considerations and applications

              The Current and Expected Credit Loss (CECL) accounting standard, ASU 2016-13 (Topic 326), outlines that the allowance for credit losses should be a valuation account deducted from the amortized cost basis of financial assets. Amortized cost basis includes, but is not limited to, adjustments for accrued interest, unamortized premium and discounts, and net deferred fees or costs. Entities valuation techniques should present the net amount expected to be collected on the financial asset.

              This complimentary document is intended to cover amortized cost basis application, specific guidance, and conceptual soundness under the context of ASU 2016-13 (Topic 326).

              Access here: https://web.sageworks.com/cecl-amortized-cost-basis

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                Free whitepaper: The 3 Keys to Customer Service in Lending

                Companies that provide a higher-quality service experience than competitors gain several benefits, according to consumer research firm J.D. Power. Among the benefits are that they:
                • Acquire customers at a faster rate
                • Retain more of those customers
                • Obtain greater wallet share and
                • Command a higher price for their services and products.
                In other words, it pays to provide excellent customer service – whether it’s providing excellent service to the customer of the local pizza shop or to the owner of the local pizza shop.

                How can lenders provide top-notch customer service that provides a competitive advantage? What do business borrowers expect from lenders, and how can financial institutions do a better job of meeting those needs? Three keys to excellent customer service in lending are speed, a personal touch and a consultative connection. When lenders provide all three of these, they set themselves and their financial institutions apart from the competition and help generate profitable portfolio growth.

                **Download the rest of the complimentary whitepaper, "The 3 Keys to Customer Service in Lending" to learn more about how to excel in lending with speed, personal touch and consultative connections. **

                  Sample Interview Questions - Branch Manager/Department Manager

                  SVP at a bank ($270MUSA)

                  Attached you will find a sampling of possible questions to ask a candidate during an interview. We have mainly used these questions when interviewing for a Branch or Department Manager however, many have applicability beyond those positions and may spur some other thoughts or questions as you read them. Hope this is helpful!

                    Small Business Streamlined Underwriting Template

                    SVP at a bank ($270MUSA)

                    This is a version of a simplified underwriting template utilized for small business credits typically less than $250,000 originated by our retail branch managers and small business loan officers. This form was used by our small business underwriters to expedite the underwriting process for smaller and less complicated business loan requests.

                      Complimentary Webinar: Qualitative Adjustments and Forecasts Under the CECL Model

                      As institutions approach the transition from the incurred loss model to the current expected credit loss model for estimating the ALLL, there are many questions around the subjective aspects of the new standard. This session will look at the relationship between qualitative adjustments and “reasonable and supportable” forecasts under CECL estimates and key considerations for how institutions will apply them.

                      Join to learn about:

                      • Key differences between qualitative adjustments and “reasonable and supportable” forecasts and the role each will play in estimating the allowance under CECL.
                      • How qualitative adjustments are used in estimating today’s allowance and how this might change under CECL
                      • Different approaches to apply forecasts within CECL calculations.
                      • Sourcing and documentation of forecasts and data for supporting qualitative adjustments.

                      Register now >> http://bit.ly/2yLhFTB

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                        Last chance to register: CECL webinar panel TODAY!

                        Time: 10/10 2:00-3:30 p.m. ET
                        Worth one CPE credit

                        The transition to the FASB’s CECL accounting standard is well underway for many financial institutions. In this panel discussion, hear from a banker, three auditors and two consultants from Sageworks, MST, Grant Thornton, BKD, Camden National Bank and PWC who are helping thousands of institutions through this critical change.

                        They’ll discuss how CECL has influenced everything — implementation, validation, organizational changes and more, while addressing your top concerns and questions.

                        Register now: http://bit.ly/2oN421G

                          1 day left: Learn automated methodology calculations, loan segmentation and more

                          As CECL is approaching, financial institutions are evaluating vendors to help them automate their allowance processes. From methodology selection, economic forecasting and proper loan pool segmentation, manual calculations will be more difficult to implement under CECL as credit losses need to be predicted over the life of the loan.

                          Join to learn:

                          • Best practices that every institution can apply during their CECL preparation process
                          • The importance of choosing the right methodology from data on-hand
                          • How to optimize loan pool segmentation and economic forecasting
                          • Ways the Sageworks ALLL software solution creates a seamless CECL transition

                          Register now: http://bit.ly/2xJk29M