Abrigo
MARCH 21, 2024
As mutually owned entities, credit unions do not exchange financial consideration in a merger transaction; hence, there is no “purchase price.” This in-depth due diligence uncovers critical information and potential red flags and clearly indicates fair value before entering into a transaction. Negotiation power.
Abrigo
OCTOBER 9, 2019
Stress Testing | 6 minute read Key Takeaways Stress testing is a useful tool to help guide CECL decisions. Bottom-up testing is transactional and best for smaller institutions (under $25B). It also provides guidance for the impact of the new accounting standard, Current Expected Credit Losses (CECL), on the portfolio.
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Abrigo
NOVEMBER 13, 2023
Instead of performing a covenant test as part of an annual review, keep this process separate. Underwriting financial transactions involves a level of detail that does not belong in your annual review process. Evaluation of the history of the transaction(s) since the last review. Profitability analysis.
Abrigo
APRIL 7, 2022
You might also like this webinar, "Mergers & Acquisitions in a CECL Environment." Understanding the mission-critical analysis, best practices, and risks of BSA/AML compliance – no matter what side of the transaction you are on – can determine the success of the transaction and assist in avoiding penalties. CECL Accounting.
Abrigo
MARCH 13, 2024
Consequently, all stakeholders of CRE assets are understandably nervous, including bankers and their investors who, due to the highly leveraged nature of CRE transactions, provided the bulk of capital financing the industry. A wave of pending maturity events ($2 trillion of CRE loans are reported to mature in the next years).
Abrigo
SEPTEMBER 20, 2023
It's worth noting that numerous fraudulent returns are transacted via direct deposits into accounts, potentially within your financial institution. Actions to Take Against Suspected Tax ID Fraud Exercise due diligence if you encounter transactions with tax refund fraud or dubious activities.
Abrigo
JUNE 5, 2023
transactional accounts like CDs versus primary checking accounts) but also in terms of balances to identify surge balances. Measure liquid assets as a percentage of total assets and evaluate this ratio relative to peers. Second, track core deposits as a percentage of total assets and evaluate this relative to peers.
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