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Where Is Your Financial Institution in the CECL Adoption Process - Top Five Takeaways from DHG’s CECL Roundtable.

On Sept. 5, 2019, DHG hosted a roundtable in Harrisburg, Pa., inviting representatives from several banks actively involved in the current expected credit loss (CECL) implementation process to discuss trending topics for the CECL standard.

FASB Finalizes Effective Date Delays for Major Accounting Standards

Today, the Financial Accounting Standards Board (FASB) issued two Accounting Standards Updates (ASUs) that finalize various effective date delays for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

FASB Meets to Discuss Comments on Effective Date Extensions

Today, the Financial Accounting Standards Board (FASB) met to discuss comments received on the August 2019 proposed Accounting Standards Update (ASU) on effective dates for major projects.

FASB Proposes Staggered Effective Dates for Major Accounting Standards

On July 17, the Financial Accounting Standards Board (FASB) met to reconsider its philosophy on establishing effective dates for major projects for private companies, not-for-profit organizations and smaller public companies, as well as to discuss the amendment of certain upcoming effective dates for existing major standards that are not yet effective.

Tidying Up the Statement of Cash Flows

Sep 07, 2016
More About | Banking | Global and National Financial Institutions | Manufacturing & Distribution | Risk Advisory

A Summary of the FASB's New Cash Flow Guidance in ASU 2016-15 On August 26, 2016, the FASB issued ASU 2016-15, which provides greater clarity to preparers on the treatment of eight specific items ...

Virginia Bankers Association 2016 CFO Conference Highlights

Sep 05, 2016
More About | Banking | Financial Services | Regional and Community Financial Institutions

The Virginia Bankers Association (VBA) held its annual CFO conference in Richmond, Va., on August 28-30, 2016. DHG was honored to be one of the sponsors and presenters at this elite event. The foll...

Internal Audit – Are You Ready for Your Next Regulatory Exam?

Aug 30, 2016
More About | Banking | Financial Services | Regional and Community Financial Institutions

Now that we are well past the recent crisis, regulators are shifting focus from credit matters to other areas of the bank, including: information technology and cybersecurity, strategic planning, i...

Qualitative Assessment Remains the Hurdle for CCAR 2016

The Federal Reserve Board (FRB) released the results of its Comprehensive Capital Analysis and Review (CCAR) exercise on June 29, 2016 and reiterated the high expectations for the capital planning process at participating Bank Holding Companies (BHCs). Of the 33 BHCs required to submit capital plans, two received objections to their plans due to qualitative reasons, while all BHCs passed the quantitative aspect of the review. Additionally, one BHC received a conditional non-objection and must re-submit its capital plan by December 29, 2016.

The Wait is Over: Planning for Day 1 of CECL

On Wednesday, April 27th, 2016 the Financial Accounting Standards Board (FASB) voted to move forward with the second part of their financial instruments project related to credit impairment, commonly

SBA 7(a) Loan Origination and Sale Accounting: A Simplified Look at Frequent Accounting “Surprises” Often Encountered by Community Banks

Mar 22, 2016
More About | Banking | Financial Services | Regional and Community Financial Institutions

It seems that virtually all community banks are looking for ways to stabilize and enhance revenue streams during this environment of compressed interest rate margins. To that end, many community ba...

Successful Women Leaders: Conversations about Career and Life

Mar 06, 2016
More About | Banking | Financial Services | Retail

Women currently hold four percent or 20 CEO positions at S&P 500 companies1. This number may appear low; however, it is significantly improved from the seven female CEO positions reported in 20...

DHG Celebrates Women’s History Month

news | Mar 01, 2016
More About | Banking | Regional and Community Financial Institutions

Charlotte, N.C., March 1, 2016 – In celebration of Women’s History Month, DHG has planned a month-long educational campaign to promote and recognize the advancement of women in the account

Revenue Recognition Standard: Implementation Considerations for Financial Institutions

In May 2014, the Financial Accounting Standards Board (FASB) issued a new revenue recognition standard – Accounting Standards Codification Update 2014-09, Revenue from Contracts with Customer...

Accounting for Investments in Renewable Energy

Feb 03, 2016
More About | Banking | Financial Services | Global and National Financial Institutions | Regional and Community Financial Institutions

Over the last 10 years, the renewable energy industry has experienced rapid growth. This growth continues to be driven by knowledgeable entrepreneurs, public policy and changing societal priorities...

Key Steps for Executing a Smooth Accounting Change Initiative

Changes to financial accounting standards and the accompanying impact on a company’s reported results, disclosures, and related accounting processes and controls, come in all shapes and sizes...

FASB Releases New Standard on Classification & Measurement of Financial Instruments

On January 5, 2016, the Financial Accounting Standards Board (FASB) published Accounting Standards Update (ASU) 2016-01, Financial Instruments Overall: Recognition and Measurement of Financial Asse...

DHG Financial Services Welcomes Regulatory Compliance Leader Ann Barrar

DHG is pleased to announce Ann Barrar, Senior Consultant, joined the DHG Financial Services practice. Based in Richmond, Va., Barrar bring significant credentials in regulatory compliance to assist financial services companies with evolving regulatory requirements.

FICO XD – An Opportunity for Growth

Nov 12, 2015
More About | Banking | Financial Services | Global and National Financial Institutions | Regional and Community Financial Institutions

What is FICO XD? Fair Isaac Corp. (FICO), the creator of the most commonly used credit scores in consumer lending, announced a new FICO scoring formula designed to target consumers that do not hav...

Adam Thomas Announced as New Partner in the DHG Financial Services Practice

Raleigh, N.C., Nov. 2, 2015 – DHG is pleased to announce that Adam Thomas was elected to partner, effective Nov. 1, 2015. Thomas is a member of the DHG Financial Services practice in Raleigh,...

SECFMS and IIA Triad Chapter Fall Conference Highlights

Oct 16, 2015
More About | High Point, NC | Banking | Financial Services | Regional and Community Financial Institutions

The Southeastern Chapter of the Financial Managers Society (SECFMS) and the Triad chapter of the IIA held a joint fall conference in High Point, N.C., on Oct. 8 and 9, 2015. Representatives of the ...

Don’t Let CECL Consume ALL Your Attention: Tips to Keep Your Incurred Loss Model Top of Mind

With the spotlight focused on the much anticipated Current Expected Credit Loss (CECL) guidance, has the incurred loss model for the allowance for loan losses (allowance) taken a backseat with bankers, auditors and regulators? We don’t think so. While CECL guidance is expected to be released in the fourth quarter of 2015, with adoption likely to be no earlier than 2018, the allowance still is required to be recorded in accordance with generally accepted accounting principles using an incurred loss model. With significant changes to assumptions that have played instrumental roles in building the level of allowance over the past few years, heightened focus should be placed on the challenges we are facing under the incurred loss allowance model today.

Proposed Revisions to FR Y-14 Reports include an Attestation Requirement for Certain Large Bank Holding Companies

Oct 07, 2015
More About | Banking | Global and National Financial Institutions | Risk Advisory

The comment period is underway for the Board of Governors of the Federal Reserve System (the Fed) notice, issued Sept. 16, 2015, proposing revisions to the FR Y-14A/Q/M reports. The proposed revisi...

DHG to Present at Bank & Capital Markets Tax Institute

Charlotte, N.C., October 7, 2015 – DHG will present on two topics at this year’s Bank & Capital Markets Tax Institute (BTI 2015). The Tax Managing Partner for DHG Financial Services...

Chip Cards: How They Can Improve Your Financial Health

What Is EMV Chip Card Technology? Deriving its name from Europay, MasterCard and Visa, EMV™1 is a global standard for credit and debit payment cards based on chip technology. Unlike the more...

Managing Risk: Best Practices for Model Risk Management and Model Validation

Sep 21, 2015
More About | Banking | Financial Services | Global and National Financial Institutions | Regional and Community Financial Institutions

Where are we today? The term “model validation” has become a hot topic among regulators and other stakeholders in recent years. DHG, however, believes that the entire model risk manage...

Virginia Bankers Association 2015 CFO Symposium Highlights

Sep 21, 2015
More About | Richmond, VA | Banking | Financial Services | Regional and Community Financial Institutions

The Virginia Bankers Association (VBA) held its annual CFO conference in Richmond, Va., on August 24-26, 2015. DHG was honored to be one of the sponsors and presenters at this elite event. The foll...

Surface Transportation Act of 2015 – Information Returns on Qualified Mortgage Loans & New Requirements

Sep 14, 2015
More About | Banking | Financial Services | Mortgage Companies | Regional and Community Financial Institutions

On July 31, 2015, the president signed into law the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (H.R. 3236) (the Act). The Act was necessary to provide a three-mo...

SNL Blogs: Conference Chatter

Firm Blog | Sep 03, 2015
More About | Richmond, VA | Banking | Financial Services

DHG’s Dave Niles quoted in SNL blog post discussing auditing guidance on internal controls, following his presentation at the Virginia Bankers Association CFO Conference. Click here to read more

Does Your Compliance Management System Pass The Regulator Test?

A compliance management system (CMS) is the method by which a bank manages the entire compliance process. Amongst the prudential bank regulators (OCC, CFPB, FRB and FDIC) there are consistent theme...

New FFIEC Cybersecurity Assessment Tool: Guidance to Assist Community Banks with Evaluation of Security Controls

The Federal Financial Institution Examination Council (FFIEC) recently released new guidance to assist financial institutions when assessing and mitigating the myriad of cybersecurity risks. The release does not replace the existing FFIEC Information Security Handbook, but establishes a new Cybersecurity Assessment Tool (CAT) designed to help auditors and examiners evaluate the maturity and effectiveness of cybersecurity controls within financial institutions.

DHG to Present Effective Model Risk Management at AICPA National Conference on Banks & Savings Institutions

news | Aug 20, 2015
More About | Banking | Financial Services | Regional and Community Financial Institutions

Charlotte, N.C., August 20, 2015 – Robin Sawyer, Partner, and Jared Forman, Principal, will present Effective Model Risk Management at the AICPA National Conference on Banks & Savings Ins...

Preparing for CECL

The financial services industry has been closely following the Financial Accounting Standards Board’s (FASB) proposed guidance for credit impairment. The current exposure draft was issued in December 2012, and the FASB is still in the process of evaluating feedback and making refinements to the proposal. Recent news indicates that the final standard may be issued toward the latter part of 2015, with adoption likely to be in 2018. This guidance proposes the use of a Current Expected Credit Loss (CECL) model, which is a forward-looking credit loss model that projects losses over the remaining life of a loan, as opposed to the current model that estimates losses that have already been incurred as of a point-in-time.

3 Do’s and 4 Don’ts Ahead of CECL

Firm Blog | Aug 11, 2015
More About | Banking | CECL

Posted on Sageworks’ Blog - preparing for CECL, ahead of Walter McNairy’s presentation on the topic at Sageworks’ 2015 Risk Management Summit

Proposed Regulations Present Tax Credit Opportunities for Companies Investing in Software Development

Since the 1980s, the Federal Research and Development tax credit has generated significant savings for companies investing in developing new and improved products and processes. To date, pursuing credits for software developed primarily for internal use was considered highly contentious. The role that computer software plays in business activities is very different today than it was when the exclusion for internal use software was enacted in 1986. Today, computer software is used in all aspects of business activity, especially in interacting with customers, vendors, and third parties. Development of such software has played a vital role in increasing the productivity of the U.S. economy and in making the U.S. more competitive globally. In response to the rapid advancement of technology and software in business, Treasury recognized the need for updated research credit regulations related to software development.

15c3-3 Daily Computation Conversion

Since the inception of Rule 15c3-3 requirements in the early 1970s, most firms have been required to lockup excess customer funds on a weekly basis. More recently, the trend is for firms to convert to a daily lockup in an effort to improve liquidity while enhancing the protection of customer assets. Whether all broker-dealers will be compelled to follow suit by regulators or not, every firm should consider whether a daily computation would be in their best interest.

DHG’s Walter McNairy and Robin Sawyer to Present on Allowance for Loan and Lease Losses Topics at Sageworks’ 2015 Risk Management Summit

news | Jul 21, 2015
More About | Banking | Financial Services | Regional and Community Financial Institutions

Raleigh, N.C., July 21, 2015 – Walter McNairy, Managing Partner of the DHG Financial Services practice, and Robin Sawyer, DHG Financial Services Partner, will present two sessions on Allowanc...

Second Quarter 2015 Accounting, Reporting and Auditing Developments

alert | Jul 08, 2015
More About | Banking | Financial Services | Assurance

The developments included in this Accounting and Assurance (A&A) Update are intended to be a reminder of recently issued accounting and auditing standards and other guidance that may affect our...

Robin Sawyer to Present on Model Risk Management and Model Validation for Community Banks at the Maryland Bankers Association Annual Convention

news | May 21, 2015
More About | Banking | Financial Services | Regional and Community Financial Institutions

Rockville, Md., May 21, 2015 – Robin Sawyer, Partner in the DHG Financial Services practice, will present a Power Hour session, Model Risk Management and Model Validation for Community Banks,...

Understanding Informal Value Transfer Systems

Introduction What is an Informal Value Transfer System (IVTS)? This paper aims to provide a better understanding of the alternatives to conventional banking often used by criminal organizations to...

On the Horizon - Managing the End of Loss Share Agreements

May 05, 2015
More About | Banking | Financial Services | Global and National Financial Institutions | Regional and Community Financial Institutions

As memories of the financial crisis of 2007 - 2009 fade away, a number of financial institutions are still dealing with the Loss Share Agreements (LSAs) entered into with the Federal Deposit Insura...

Increasing Regulatory Focus on Cybersecurity Risk at Community Banks

The increasing number of data security compromises at financial institutions has prompted regulatory agencies to increase scrutiny around how banks protect confidential client data. In March 2015, the Federal Financial Institutions Examination Council (FFIEC) released two joint statements, each highlighting a current threat used by third-party attackers to steal consumer information or impair a bank’s ability to serve its customers. The FFIEC notes that the statements are not designed to replace or supplement any specific regulatory requirements, which are already addressed in the Information Security booklet of the FFIEC IT Examination Handbook. Rather, the statements are intended to draw banks’ attention to key risks and provide a primer for risk mitigation steps.

COSO 2013 Framework – Where Are We Now?

Apr 29, 2015
More About | Banking | Financial Services | Global and National Financial Institutions | Regional and Community Financial Institutions

In May 2013, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released Internal Control - Integrated Framework (2013 Framework), which is an update to the original Intern...

Heather Cozart, DHG Partner, Receives Triangle Business Journal “40 Under 40” Award

Raleigh, N.C. April 22, 2015 – Heather Cozart, a Partner in DHG’s Financial Services Group, is a recipient of this year’s “40 Under 40” award from the Triangle Busines...

Using Analytics and Reporting to Strategically Manage Cost

Increasing competitiveness in today’s business environment coupled with general uncertainty in the capital markets have made it harder for businesses to grow revenue and market share. Additio...

First Quarter 2015 Accounting, Reporting and Auditing Developments

alert | Apr 09, 2015
More About | Banking | Financial Services | Assurance

The developments included in this Accounting and Assurance (A&A) Update are intended to be a reminder of recently issued accounting and auditing standards and other guidance that may affect our...

Recent Internal Audit Trends in Banking

Firm Blog | Apr 07, 2015
More About | Banking | Financial Services

Learn about internal audit trends for financial institutions from Wesley Allen and Lori Charlebois' article published in the Maryland Banker. Posted with permission of Maryland Bank...

It’s Finally Here – BASEL III First Quarter 2015 Call Report Changes for Community Banks

Mar 23, 2015
More About | Banking | Financial Services | Regional and Community Financial Institutions

The ink on the Basel Committee on Banking Supervision’s BASEL II accords had barely dried when the financial crisis of 2007-2009 erupted. Policymakers and regulators quickly realized that the...

Plan for Today, Look Ahead to Tomorrow’s Allowance for Loan Losses (ALL)

Mar 06, 2015
More About | Banking | Financial Services

At the North Carolina Bankers Association’s 2015 Bank Directors Assembly, held March 2 and 3 in Greensboro, N.C., Walter McNairy gave a presentation entitled, “What Your Regulators Ar...

DHG will host Comprehensive Capital Analysis & Review Internal Audit Training

New York, N.Y, March. 05, 2015 – DHG Risk Advisory Practice, will host a Comprehensive Capital Analysis & Review Internal Audit Training on March 10th in New York City. DHG will address t...

Dodd-Frank Act Stress Testing for Mid-Size Banks: No Difference from Large Banks in the Quality and Credibility of Results

Overview One of the key features of the Dodd-Frank Act is for certain financial institutions to conduct annual stress tests in order to assess their capital adequacy and ability to absorb losses ...