Fortner Bayens, P.C. Banking Letter - December 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.

Is Your Deferred Tax Asset Safe? 

Charles J. Garrison, CPA

There is good news for community banks in the Tax Cut and Jobs Act, but potential bad news as well.  Since the corporate income tax rate will be reduced from the current rate of up to 35% to a lower 21% rate, current accounting standards will require a revaluation of deferred tax assets and liabilities to the lower rate as well. 

To read more, click here.

Change to 1099-C Filing Rules

Mark J. Corey, CPA, JD

As the 1099 filing season fast approaches, here is a summary of the 1099-C filing rules and a note on a significant change in when to file a 1099-C.

When to file a 1099-C

File a 1099-C when $600 or more in debt secured by the property is discharged or deemed to be discharged based on one of the following eight identifiable events (also listed in Treasury Regulation § 1.6050P-1(b)(2)):

  1. Discharge of debt in bankruptcy;
  2. Debt is rendered unenforceable in foreclosure, receivership or fed/state court proceeding;
  3. Expiration of the statute of limitations on collection, filing a claim, or filing a deficiency judgment proceeding;
  4. Bank's election of foreclosure remedies which by statute prohibit collection of deficiency;
  5. Debt is rendered unenforceable in a probate or similar proceeding;
  6. Agreement between Bank and borrower to discharge debt at less than full consideration (deed in lieu);
  7. Decision by the Bank or application of a defined policy of the Bank to discontinue collection activity and discharge the debt; Other actual discharge before an identifiable event.

To read more, click here.

New Dog, Old Tricks- 2017 Breach Analysis

Alyssa L. Reeves, MIS, CISSP, CISA, CEH

As 2017 comes to an end, let’s look back on some of the year’s breach statistics and threats that have plagued us and are forecasted to be back next year. Not surprisingly, financial organizations are again at the top of the list of the most attacked industries- accounting for 24% of breaches according to Verizon’s 2017 Data Breach Investigations Report.  

This statistic has been true for the last several years and does not show any indication of changing, which is not surprising since 73% of breaches are financially motivated.  What may be surprising is the changing trend of the type of financial organizations being targeted.  The majority of breach victims (61%) came from organizations that have fewer than 1,000 employees.  

To read more, click here.

Ready or Not; Here it Comes (the Fifth Pillar) 

Fred A. Lutz, CRCM, CAMS

May 11, 2018 is coming fast!  That is the date that your institution must comply with the BSA/AML’s fifth pillar and the Beneficial Ownership section of that rule.

First the pillar itself:  This amends the AML program requirement to explicitly require

institutions to implement and maintain appropriate risk-based procedures for conducting ongoing customer due diligence including:  understanding the nature and purpose of the customer relationship and conducting ongoing monitoring to identify and report suspicious transactions and; on a risk basis, to maintain and update customer information.  This pillar includes all accounts at your institution, not just entities that are subject to the Beneficial Ownership certification section.

To read more, click here

House Passes Bill Easing Regulatory Requirements for Regional and Mid-Size Banks

On December 12, 2017, the House of Representatives, by a vote of 294 to 129, passed a bipartisan bill aimed to bring regulatory relief to community banks. 

The bill, named the Community Institution Mortgage Relief Act (H.R. 3971), proposes safe harbors for certain institutions from the Truth In Lending Act’s (TILA) and the Real Estate Settlement Procedures Act (RESPA) requirements of escrow accounts for riskier borrowers. The bill does not prohibit banks from offering escrow services should they choose to offer them. 

To read more, click here

FBLG Folk Feature - GOAL!