Auditing/Accounting
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Accounting considerations for Financial Institutions that funded Payroll Protection Program (PPP) loans
Many lenders are participating in the PPP and loans are currently being disbursed to borrowers across the country. These loans contain complex accounting considerations such as deferred fees, guarantees, and loan forgiveness. Our summary of the primary accounting considerations financial institutions should consider over the life of the PPP loans is included below. Record the […]
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Regulators Provide Regulatory Capital and Liquidity Relief to Banks
As banks across the country rush to process PPP loan applications and help borrowers in financial distress, regulators have issued two important interim final rules in the last week to provide regulatory capital relief and additional liquidity to institutions in the wake of COVID-19. As bank balance sheets swell from increased loan demand, we hope the combination of these new provisions relieves at least some of the stress currently facing institutions.
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CECL and the CARES Act: What does it mean for your private financial institution?
Financial institutions are facing numerous challenges as the economy and society continue to react to the effects of COVID-19. When the CARES Act was passed last week, it created a need for interpretation and logical implementation. In section 4014, of title IV, most financial institutions took note of the temporary relief from current expected credit […]
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Our perspectives on 2020 interagency loan modification and TDR guidance
In the current environment, many institutions are seeking ways to assist borrowers impacted by the economic distress resulting from the COVID-19 pandemic. On March 22, 2020, Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus, was released. We noted this interagency statement seeks to provide relief from […]
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HUD Provides 30-Day Extension for All Financial Statement Submissions
On March 13, 2020, the United States Department of Housing and Urban Development (HUD) issued approval for a 30-day extension for all financial statements having a due date of March 31, 2020 due to the business disruptions caused by the COVID-19 virus.