February, 2015

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Business-valuation methods matter

Abrigo

'By Brad Spence, Director of Enterprise & Valuation Teams, Sageworks. Think performing quality business valuations is important? Consider this statistic: Roughly one in every three business-sale engagements for brokers over the last 12 months ended without a transaction, and unrealistic asking prices were a major factor in the failed deals, a recent survey says.

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Secure payments: How to safely take payments online

GoCardless

Customers need to be able to trust you with their payment info. Here's how.

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How to reduce professional liability risk when performing valuations

Abrigo

'By Brad Spence, Director of Valuation Solutions, Sageworks. Remember the old saying, “Make hay while the sun shines”? It’s a good reminder that one should take advantage of opportunities while they’re available. Valuation services represent one good opportunity for growth that many accountants recognize and are taking steps to address.

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Which loan types are fueling bank growth?

Abrigo

'Following the recent recession, U.S. commercial bank loan portfolios have continued to expand. As of the third quarter of 2014, the total value of portfolios was $7.4 trillion, up from $6.5 trillion at the end of the third quarter of 2011. Which areas of lending and what banks are driving the expansion? A recent issue of Banking Insights , published by the Federal Reserve Bank of St.

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Top benefits of ALLL scenario building

Abrigo

'By Ed Bayer, Vice President at Sageworks, and Johnathan Williams, Account Executive at Sageworks Though it may be often overlooked, scenario planning allows bankers to assess the outcome of the ALLL calculation under various assumptions or “scenarios.” Bankers can then estimate the impact that ALLL-calculation variables may have on the final reserve without having to perform a completely new calculation.

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What is your accounting firm’s plan post-tax season?

Abrigo

'With spring comes the promise of warmer temperatures, irises and snapdragons, along with March Madness college basketball rivalries and the start of baseball season. While tax accountants may not be able to see the light at the end of the busy season tunnel yet, the spring is sure to come. And when it does, and the W-2s and I-9s stop flooding in, some accountants and firms may want to transition from compliance work to more value-added advisory services.

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Will the cost of regulation impact community bank customers?

Abrigo

'The banking industry has seen a steady stream of media attention since 2008, much of it in the form of stories about data breaches linked to major retailers or mega banks’ profits. For most consumers who have a checking account, savings account and maybe a mortgage, the regulations placed on their community bank isn’t given a second thought.

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Three ways to keep your best employees from leaving your firm

Abrigo

'A few decades ago, it was fairly common for a person to secure a job immediately following graduation from school and remain with the company until retirement. Those days are gone, and now, hanging on to top talent is a significant concern for most employers. In October, PayScale, the online salary, benefits and compensation information company, reported that 82 percent of companies were worried about employee retention , up from 60 percent in early 2014.

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Trend analysis within your Watch List

Abrigo

'A standard component of monthly board meetings is an update on the performance and volume of the institution’s Watch List, the group of adversely classified loans under close supervision due to past nonperformance. Oftentimes, the Watch List includes loans rated as a Special Mention, Substandard, Doubtful or Loss, though in some situations the bank also includes loans nearing these thresholds as precautionary measure.

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Key components of credit risk rating systems

Abrigo

'One of the most popular tools to monitor credit risk is a standardized risk rating system. A credit risk rating system provides banks and credit unions the opportunity to grade transactions in their commercial loan portfolio by level of risk. CEIS Review , a New York-based bank consulting firm, recently published an article on these systems in their newsletter, The CEIS Quarterly.

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What 2015 holds for banking

Abrigo

'The IBM Institute for Business Value released its 2015 report, “ The paradox of Banking ”, which analyzes the existing market and makes predictions about how the landscape will evolve, what will make banks succeed or fail and how institutions can use the market trends to their advantage. While the report recognizes that customer demands and competition from non-traditional banks will shape banking’s future, the report also recognizes that regulatory expectations and scrutiny w

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Auto lending up more than 30 percent at credit unions since 2012

Abrigo

'It may still be early in the New Year, but the U.S. economy is looking promising for 2015. A resurgent job market (with 257,000 U.S. jobs added in January , following two very strong months in November and December) is most telling, and leaving many Americans with smiles on their faces. Along with steady job creation, wages are also on the rise. January also pointed to an average hourly wage shift – rising 12 cents to $24.75 in January, a jump of 0.5 percent.

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Stop creating “Frankenstein” business valuation reports

Abrigo

'By Mike McCaffery, Regional Consultant – Valuation Solutions, Sageworks. Business valuation professionals know that writing the report is a major component of performing valuations. For one thing, valuation analysts spend a lot of time on each report. In fact, writing the report is the most time-consuming part of the process – even more time-consuming than the data collection, data entry or calculations.

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In the news: Are community banks and credit unions overregulated?

Abrigo

'One of the topics continually making headlines in banking today is the cost of regulation. Members of Congress are currently debating the topic – whether smaller financial institutions are being negatively impacted by regulations like the Dodd-Frank Act – within a Senate Banking Committee hearing on regulatory relief for small banks and credit unions ( American Banker offers five takeaways from the Committee’s first hearing ).