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Mar 22, 2017 10:00:00 AM

How to Respond to the SEC Request for Public Comment on Industry Guide 3

“As an agency designed to serve the American people, it is imperative to constantly look back on the SEC’s rules and engage the public on ways to improve. Today, we are asking for public comment on whether Industry Guide 3 continues to elicit the information that investors need for informed investment and voting decisions.”

- SEC Acting Chairman Michael Piwowar

On March 1, 2017, the SEC voted to publish a request for public comment on disclosures mandated by Industry Guide 3—Statistical Disclosure by Bank Holding Companies. The agency is seeking input from investors, registrants and others on ways to improve disclosures for bank holding companies, inquiring whether Guide 3 remains capable of gathering the information needed for investors to make informed funding and voting decisions. Additionally, the SEC is examining what new types of disclosures about bank holding company activities might be necessary.

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Topics: Regulations, SEC, Industry Guide 3

Mar 16, 2017 10:30:00 AM

What You Need to Know Now about Trump Administration Tax Reforms

From the earliest days of the election cycle, tax reform has been a consistent topic of focus. During campaigning, all of the Republican candidates recommended reductions to personal and corporate income taxes. Now-President Trump's was the most aggressive. He proposed bringing the corporate income tax rate down to 15%.

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Topics: Trump, Tax Reform

Mar 8, 2017 10:00:00 AM

3 Risk and Reward Considerations for a Successful Bank M&A Deal

The past three years have seen healthy M&A activity. 2015 set a record for banking and securities M&A. In 2016, activity slowed slightly in the early part of the year but picked up again in the second half, and concluded strong. With the current post-election uncertainty, an unsettled regulatory landscape, and new capital requirements related to Basel III, however, analysts expect a slight pause.[1]

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Topics: M&A, Risk and Reward

Mar 1, 2017 11:00:00 AM

What Banks Need to Know About Secure Vendor Management

Vendor relationships are a reality for virtually every shape, size, and kind of business. On any given day, you might have people who come into your bank to do simple things like deliver coffee or clean your offices. You’re almost just as likely to have outside providers who are handling complicated tasks like managing your servers. Though the coffee guy might not have access to private data, every vendor relationship brings with it some degree of risk. Knowing how to quantify that risk and engage proper security protocols are vital to the resilience and reputation of your institution.

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Topics: Vendor Management, Risk Management

Feb 22, 2017 10:30:00 AM

Community Banks Are Using Fintech to Expand Their Impact

Recently, a HORNE Banking client, a community bank based in rural Mississippi, shared with us that they are moving into Fintech. This institution does business in their immediate area as well as in some metro locations. Their announcement was noteworthy for a few reasons. First, despite all the talk about this channel over the past few years, we’ve yet to see it in action within community banks. Second, the institution is using Fintech as a technology-based lending platform for its small business clients, rather than as a consumer lending offering.

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Topics: Fintech

Feb 16, 2017 10:00:00 AM

What's Behind President Trump’s Order to Reform Dodd-Frank

The first three weeks of the Trump presidency have been full of activity. Within President Trump’s first few hours in office, he was signing executive orders, and he does not appear to be slowing down any time soon. On February 3rd, he signed an order that directs the Secretary of the Treasury to review the Dodd-Frank financial oversight law and report his recommendations.

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Topics: Dodd-Frank, Banking

Feb 8, 2017 10:00:00 AM

Preparing for CECL Compliance: Formalizing Your Policies and Timeline

As 2017 gets underway, and we understand more about what’s on the horizon for the new administration’s regulatory and tax reform, there’s a sense that the coming years will bring unprecedented changes for financial institutions. In this last post in our series about CECL adoption, we will revisit the timeline and steps. More than ever, it is critical that you are preparing now for ensuring a successful adoption in the midst of an ever-changing landscape.

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Topics: CECL

Feb 1, 2017 10:30:00 AM

Preparing for CECL Compliance: Validate Your Models and Software

The previous post about preparing for CECL compliance looked at how to assess data, human, credit management, and technology resource capabilities and needs. It’s a critical step that documents how your institution collects, stores, measures, and manages loan portfolio data, and includes a review of future requirements, warehousing and automation capabilities, and probable risks in your loan portfolio.

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Topics: CECL

Jan 26, 2017 10:00:00 AM

Preparing for CECL Compliance: Assess Your Resource Capabilities and Needs

In the previous post about preparing for your CECL compliance deadline, we established that there is no one-size-fits-all solution under the new standard. We provided some of the key considerations for determining how sophisticated your model should be, as well as unique benefits and weaknesses of the options available to manage the loan pools in your portfolio.

Once you have evaluated the various model options and identified which you’ll use to perform calculations, it’s time to assess your resource capabilities and needs. This is a big consideration with cross-functional implications. It will help to identify the software models and provider that will be the best fit for your institution. In this step, you'll look at four main categories—data, human, credit data management, and technology. Data should be your starting point, as it will influence every subsequent decision at this juncture.

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Topics: CECL

Jan 18, 2017 10:00:00 AM

Preparing for CECL Compliance: Select Your CECL Models

In the previous post about preparing for your CECL compliance deadline, we looked at the steps needed to analyze the credit risks within your loan portfolio, and clarify the credit quality indicators (CQIs) impacting those risks. These first two steps of this complex, lengthy lead up to your early or required implementation date should have provided you with a solid understanding of the composition of your loan portfolio.

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Topics: Regulations, CECL

Jan 11, 2017 11:00:00 AM

Preparing for CECL Compliance: Analyze Your Loan Portfolio and CQIs

The countdown that began June 16, 2016 is officially underway. The runway to CECL (Current Expected Credit Losses) compliance promises to be riddled with complexities. You don’t need to look much farther than the fact that FASB implementation dates are set several years out to get the sense of how important it is to take a long-term, multi-faceted approach to ensuring compliance.

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Topics: CECL, Banking

Jan 4, 2017 10:00:00 AM

HORNE Banking Year in Review: Top 10 Blogs of 2016

For the banking industry, 2016 was a year marked by regulatory changes, new channels and heightened awareness of cyber issues, demographic shifts, and new ways of thinking about the role of community banks. Our team published 48 blogs in 2016.

Here are your top 10 most read posts, listed in order of popularity.

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Topics: Hard Trend

Dec 20, 2016 10:30:00 AM

Is Your Bank Prepared to Profit From Higher Interest Rates?

On December 14, 2016, the Federal Reserve boosted its benchmark interest rate by 25 basis points to a range of 0.5 percent to 0.75 percent. While this is still incredibly low by historical standards, it is notable because it’s only the second time since the financial crisis of 2008 that the Fed has raised this rate.

The move continues to support economic growth and sustains a friendly environment for borrowing and risk-taking. It also recognizes that the U.S. is enjoying strong employment and price stability, and healthy inflation, as well as positioning the economy to ride the expected acceleration that will occur as a result of the new Trump administration.

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Topics: Regulations, Interest Rates