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Dec 23, 2014 7:58:00 AM

Banking on the Future – Key Considerations for Bank Growth in 2015

2014 saw more than a few big developments in banking, from the launch of Basel III regulations to issues with cyber security and increasing use of big data as a strategic planning tool. Along with new regulations, capital requirements and technology advancements, 2014 saw a proliferation of growth efforts start to reshape the banking landscape.
 
Factors like improved acquisition multiples, robust capital reserves, and a shrinking gap between valuations and actual purchase prices have created an environment that is more favorable to banks pursuing growth through efforts like branch expansion, mergers & acquisitions (M&A) and initial public offerings (IPO).
 
As we look toward 2015, the HORNE team has compiled a few key considerations to help you prepare to act with agility and confidence when opportunity arises.

 

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Topics: Interest Rates, Basel III, IPO, M&A

Dec 3, 2014 10:06:00 AM

Basel III Will Complicate Your Bank’s Deferred Tax Assets

On January 1, 2015, community banks will begin the transition to new Basel III rules. These new capital requirements coming from the Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency promise to complicate the way that U.S. banks calculate deferred tax assets (DTAs) and deferred tax liabilities (DTLs).
 
Basel III decreases the amount of DTAs that can be used to calculate Tier 1 capital and adds complexity to DTA calculations. A careful comparison of current rules for treatment of DTAs against the new Basel III requirements reveals layers of additional complexity that banks will need to address as they handle tax planning going forward.

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Topics: Basel III, Tax Planning, Deferred Tax Liabilities

Oct 9, 2014 12:30:00 PM

Community Banking News Roundup – Basel III, HELOC and Managing your M&A

HORNE believes in taking a windshield view of the future. That means continually gathering and reviewing information and intelligence about key regulation, compliance issues and economic trends that will have an impact on the direction that the banking industry takes going forward. 

From Mergers and Acquisitions (M&A) to the implications of Basel III, to the end of draw period for HELOC borrowers, here are a few of the topics we recommend you keep on your radar, and some of the questions we all should ask as we navigate change and risk.

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Topics: Basel III, HELOC, Federal Reserve, M&A

Sep 11, 2014 11:30:00 AM

Key Takeaways from AICPA Banks and Savings Conference

Hundreds of members of the banking industry descended upon our nation’s capital this week for the AICPA National Conference on Banks & Savings Institutions. The event focused on equipping accountants, financial executives and auditors to handle the profound volume and speed of regulatory and compliance changes. 

Given the current banking industry climate, and the fact that we are on the upturn from one of the most damaging financial crises in U.S. history, we were not surprised by the reactive tone of the conference. 

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Topics: Basel III, AICPA, Dodd-Frank

Aug 14, 2014 11:00:00 AM

Are your S Corporation’s Tax Distributions at Risk?

It seems every time you turn around, there is a new regulation creating unique opportunities, challenges and risks for banks. The new Basel III capital rules are no different, and for S corporations the capital conservation buffer could have a significant impact on future tax distributions. 

Phased in between 2016-2018, the Basel III capital conservation buffer will be fully effective in 2019. Under this regulation, when a bank’s risk-based capital ratios fall below certain thresholds, regulators will have the ability to limit or prohibit future dividends or distributions. 

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Topics: Regulations, Basel III, FDIC, Capital Conservation