If you've taken a look at the landscape, there's a variety of CECL solution options. Some of the solutions seem mundane and straightforward, only to get into rocky ground later. That rocky ground usually comes in the form of unforeseen costs. Let's take a look at three solutions, two of which you’ve probably been pitched. [...]
According to research released last month by the highly respected Fitch Ratings, loan loss reserves for the U.S. banking industry are expected to increase between $50 to $100 billion under CECL. That's an increase of 38 to 77% above current reserve levels. Fitch's report on CECL went on to outline that as a result [...]
Last week we discussed setting goals that could be influenced by actionable items. Setting goals is important, but if you want them to be taken seriously, create a visible scoreboard for your team. Drive by a playground with a basketball goal, and you might see kids shooting hoops without a care. Drop in on that [...]
Just like many businesses and organizations do, we’ve just came out of strategic planning sessions for our business year in December. One of the interesting things we came across was the difference between goal measurements. How often have you seen this? We want the bank to earn $________ in 2019. That’s great, and you should [...]
We hope everyone is having a great start to their Thanksgiving week! While we’re thankful for a great economy right now, storm clouds are gathering as you can see from this week’s news. Interest rate changes have huge effects on how community banks conduct business. A flattening yield curve is one of the surefire triggers [...]
The news this week has been interesting as the Fed reactions to mid-term elections, and markets adjust to the Fed’s stance on the plan to raise rates at a steady rate. Gold and other commodities are being affected by the Fed’s positions. Our last article this month is very interesting. Australia is enjoying a 27-year [...]
Interest rate hikes are still the topic du jour of the moment. It seems like everyone has a different opinion of just how the Fed should modify rates over the next year or two. These interest rate changes could have a huge impact to your bank’s balance sheet. It’s important for your bank’s ALCO to [...]
