Not your average CPAs

We are excited to announce that Oliver Garrison LLC is now Hamby & Hengeli LLC!

Our dedicated and experienced team of accountants and consultants will stay in place. We are proud to have the best group of people committed to serving the needs of banks and other financial institutions.

Same people. Same Services. New Name.

Current Newsletter

Regulatory Accounting Refresher on Restoring Non-accrual Loans to Accrual Status
Robert L. Hamby, CPA

In accordance with the Call Report instructions, loans must be placed in a nonaccrual status if the financial condition of the borrower causes the asset to be maintained on a cash basis, if full payment of principal or interest is not expected or if the principal or interest has been in default for more than 90 days unless the asset is both well secured and in process of collection. To return a loan to an accrual status there are a few rules or guidelines that should be followed. In accordance with the Call Report instructions, loans must be placed in a nonaccrual status if the financial condition of the borrower causes the asset to be maintained on a cash basis, if full payment of principal or interest is not expected or if the principal or interest has been in default for more than 90 days unless the asset is both well secured and in process of collection. To return a loan to an accrual status there are a few rules or guidelines that should be followed.

Updated Supervisory Memorandum on Bank Owned Life Insurance
Stormy San Miguel

On March 1, 2017, the Texas Department of Banking updated the supervisory memorandum discussing bank owned life insurance.

The supervisory memorandum establishes supervisory requirements and best practices surrounding the purchase and holding of BOLI. In addition, the supervisory memorandum provides detailed descriptions of the different types of insurance products available to banks and explains how the risk-weighting for each is assigned. This is especially useful as the Basel III Capital Rules changed the risk weightings for the various types of BOLI.

While these guidelines are only authoritative for Texas state chartered institutions, the guidance is similar that issued by the federal banking regulatory agencies in 2014, and provides useful information for all institutions.

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