Fortner Bayens, P.C. Banking Letter - January 2018 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.

FASB Takes Action on Deferred Tax Issue

Joseph M. Press, CPA

By now, all C-Corp banks are aware of the adjustment to deferred taxes needed to address the impact of the Tax Cuts and Jobs Act. However, the adjustment to deferred taxes related to unrealized gains/losses on investment securities has revealed a burdensome flaw in current GAAP.  FASB to the rescue?
To read more, click here

Big Depreciation Changes under the New Tax Law

Mark J. Corey, CPA, JD

Under the new Tax Cuts and Jobs Act of 2017 there were significant changes to the depreciation rules.  Bonus depreciation, Section 179, and auto depreciation all were significantly changed.

Most of the changes were for 2018 going forward, but increased bonus depreciation was made retroactive for assets placed in service by September 27, 2017, that you can take advantage of on your 2017 tax return.

To read more, click here.

New Tax Law Impacts Entertainment Expenses

Joseph M. Press, CPA

The recently passed Tax Cuts and Jobs Act of 2017 has changed the deductibility of entertainment expenses such that businesses may wish to change the way they classify and aggregate expenses to facilitate the preparation of future tax returns.  

To read more, click here.

Are You and Your ATM at Risk for Fraud? 

Fran Sponsler, CRCM

October 1, 2015 was the deadline for US retailers to switch over to a payment technology called EMV.  EMV stands for Europay, MasterCard, and Visa; which are the three companies that created the standard.

The process of migrating to EMV technology was to provide better protection against counterfeit fraud.  EMV cards have microprocessor chips inside which make it more difficult for anyone to steal account information while using the card.  The microprocessor chip in the EMV card generates a unique code for every transaction, so although a fraudster may be able to obtain the code, it becomes virtually useless and won’t work a second time for a different transaction.  In addition, the code cannot be traced back to the actual card number.

To read more, click here.

FASB Hopes to Ease Up on Lease Accounting Requirements

David J. Bayens, CPA

FASB recently proposed changes to its new lease accounting standard.  The proposal is in response to complaints about the complexity and cost of applying the new standard.  In summary, the proposal would:

  • Allow users to apply the new rules at the adoption date versus the date of the earliest period presented in a set of financial statements, and
  • Under certain circumstances, remove the requirement that lessors break out costs for nonlease components from lease components.

To read more, click here.

Regulatory Changes - 2018 - In With the New

Val J. Vought, CRCM, CAMS

Significant changes created by Dodd-Frank continue to be implemented with the most critical changes in 2018 impacting Regulation C – Home Mortgage Disclosure Act.  Other significant changes will be impacting the Bank Secrecy Act program with the addition of the Fifth Pillar for Risk Based Customer Due Diligence.

To read more, click here