Webster Bank Sees Q1 Earnings Increase
Webster Bank saw first quarter earnings increase almost 200 percent compared to the same quarter last year, when banks were responding to the start of the pandemic.
COVID Legislation Extends TDRs, Adjusts SBA Programs
After threatening last week to veto the bipartisan COVID-19 relief package, President Donald Trump signed the bill Sunday evening, paving the way for $600 economic aid payments and other provisions affecting banking and lending.
Bank Earnings Show Little Credit Stress So Far
Some of the same initiatives that banks used to help customers affected by the pandemic – from loan modifications to Paycheck Protection Program loans – could also affect banks’ balance sheets in the coming months.
Webster Bank Sees Earnings Drop 47 Percent
Waterbury, Connecticut-based Webster Bank announced a substantial drop in its earnings for the second quarter thanks to a $40 million provision for bad loans.
Bank Regulators Clarify CECL Delays
The CARES Act and an interim final rule by bank regulators provided conflicting guidance on CECL implentation, prompting federal bank regulators to issue another joint statement clarifying the rule.
Banking Regulators Delay CECL Implementation
Banks that became subject to CECL this year can delay implementing the standard for two years following an interim final rule issued by federal bank regulators on March 27.
FDIC Urges CECL Delay During Economic Crisis
As federal and state regulators encourage banks and credit unions to work with customers facing financial hardships due to the coronavirus crisis, the Federal Deposit Insurance Corporation chairman wants to delay the implementation of a new accounting standard for banks.
People’s United Won’t Swear Off Future Mergers
Changing dynamics and accounting standards will not change People’s United Bank’s strategy around mergers and acquisitions, bank executives said during the bank’s third quarter earnings conference call on Thursday.
FASB Formally OKs CECL Delay for Some Banks, Credit Unions
The Federal Accounting Standards Board voted on Oct. 16 to delay the new CECL (current expected credit loss) standard for some companies.
FASB Announces CECL Delay for More Companies
Following a vote last month, the Financial Accounting Standards Board yesterday formally issued its proposal to delay the deadline for many banks, credit unions and other smaller companies to delay implementing a new accounting standard that would dramatically change how lenders would treat loans.
Despite Partial CECL Delay, Industry Trade Groups Still Seek Further Study
Many banks and credit unions will have additional time to prepare for the new Current Expected Credit Loss accounting system after the Financial Accounting Standards Board recently voted to delay implementation for a select group.
CECL Expected to Have Little Impact on Community Banks’ Reserves
The banking industry has been deeply concerned over the impact CECL would have on total reserves and capital. But after first quarter earnings many New England community banks expect their reserves under CECL will be the same, if not smaller, than under the current incurred model.
Survey Shows Lenders Making Progress on CECL Transition, But Not Fast Enough
With nine months left to implementation, only 14 percent of SEC registrants are currently running parallel loan loss allowance models under the new current expected credit loss accounting method, while 3 percent of SEC registrants acknowledge they have not yet begun CECL preparations at all.
Nine Months Out, Banks Moving Slowly on CECL Implementation
With less than one year to go, most public banks appear to still be in the formative stages of implementing a new nationwide accounting rule, while at the same time trying to assess its impact on their consolidated financial statements.
FIs Look Into CECL, but Still Uncertain on Implementation
The majority of community banks and credit unions in Southern New England have started planning their adoption of the new Current Expected Credit Loss accounting method, but most have yet to identify exactly how they will implement this new standard.
Poll: Many Community Banks Lack CECL Task Force
Nearly half of community banks in the U.S. have not formed a task force for implementing current expected credit loss accounting standards, which is expected to take effect in just two years.
Study: Very Few FIs Under $10B Prepared For CECL
Only 11 percent of CFOs at financial institutions under $10 billion in assets believe they are prepared for the transition to the new current expected credit loss accounting standard, according to a recent study.
Sageworks Gauges Forecasting Durations For CECL
More than a third of bank and credit union executives said they felt comfortable with forecasting economic projections 12 months into the future in anticipation of FASB’s coming CECL rule, Sageworks recently said.
Sageworks: FIs Prefer Historical Loss Model For C&I Pools
Financial institutions largely prefer a historical loss rate method when reserving against pools of commercial and industrial (C&I) loans, Sageworks said in a recent survey.
Sageworks: Bankers May Want To Retool FICO Storage
More than a third of bank and credit union professionals (34 percent) store consumers’ FICO scores on a monthly basis, but given the approaching requirements of CECL, they may want to rethink that approach, financial analysis firm Sageworks said recently.
