Fortner Bayens, P.C. Banking Letter - March 2019 Edition

Heads Up - 31st Annual Independent Bank Compensation Survey

Coming in early June!   2019 marks the 31st year we have conducted our annual survey!  Many of you are long-time participants and we welcome your participation again this year.

In our survey we compile compensation information for key bank positions as well as data on bonus and benefit plans.  Our survey form is brief and concise and doesn’t take a lot of time to complete.

We publish a comprehensive report with our findings and lots of information.  Just as important, you will be able to generate customized survey results online that compare you to your peer group.  All of our reports are free of charge.

Our survey will include bankers from all over the country.  Stay tuned- you will be receiving more information regarding the survey and how to participate in it.

To read more, click here. 

Regulation E Error Resolution and Interest-Bearing Accounts 

Val J. Vought, CRCM, CAMS

The Electronic Fund Transfer Act was passed in 1978.  It was intended to protect individual consumers engaging in electronic fund transfers (EFTs) and remittance transfers.  These services include:

  • transfers through automated teller machines (ATMs);
  • point-of-sale (POS) terminals;
  • automated clearinghouse (ACH) systems;
  • telephone bill-payment plans in which periodic or recurring transfers are contemplated;
  • remote banking programs; and
  • remittance transfers.

A good understanding of these services and the financial institution’s responsibilities is essential for electronic transfer functionality and processing.

To read more, click here. 

Real Estate Rule Change

Dawn Thompson

High volatility commercial real estate loans (more commonly known as HVCRE’s) are loans to borrowers who have contributed less than 15% of a project’s completed cost.  Banks have lobbied for changes to this regulation, which penalizes borrowers who have built equity in the land, based on years of ownership. It also penalized the banks, as it required them to hold an additional 50% capital against these loans to maintain the same capital ratios.

To read more, click here. 

Financial Exec's Worried About The Numbers

David J. Bayens, CPA

In late 2018, Blackline, a provider of cloud-based products for accounting and finance applications, commissioned a survey of corporate executives and financial professionals.  The purpose of the survey was to gauge confidence levels in financial data and the perceived impact of errors on businesses.

A summary of the responses included the following:

  • 70% had made decisions based on inaccurate data.
  • Over half (55%) said they weren’t confident they could identify errors before the results are reported.
  • 71% of the C-level respondents claimed to completely trust the accuracy of financial data.  However, only 38% of the financial professionals had the same conclusion.

To read more, click here.