FBLG Banking Letter Welcome to our webpage featuring our most recent issue of the FBLG Banking Letter – a publication of Fortner, Bayens, Levkulich & Garrison, P.C.  These newsletters will focus on the latest news and events that impact community banks.  Our goal is to use the expertise we have gained through our specialization in banking services to benefit our constituency, community banks throughout the West. Topical information from previous issues of the FBLG Banking Letter and other sources may be found under the tab "Banking Library."         A publication of Fortner Bayens Levkulich & Garrison, P.C. Headlines Federal Reserve Board Makes Final Move to Single Check Processing Region Allowance for Loan Loss and the IRS Data Hacking from Lost and Found Deferred Costs of Originating Loans Prospering in Challenging Times: Strategic Issues for Western Banks   Federal Reserve Board Makes Final Move to Single Check Processing Region by Fran Sponsler, CRCM, CCBCO & Azary Witten There are significant changes for all banks in 2010 due to recent amendments to Regulation CC, also known as the Expedited Funds Availability Act. Effective February 27, 2010 all paper check processing performed at the Federal Reserve Bank of Atlanta will move to the Federal Reserve Bank of Cleveland, which leaves Cleveland as the only clearing house for checks in the nation. To read more, click here.   Allowance for Loan Loss and the IRS by Joseph M. Press, CPA Over the past several fiscal quarters, banks have been faced with the need to increase their loan loss reserves (ALLL) to unprecedented levels.  In light of this situation, the question has arisen, “At what point will the Internal Revenue Service (IRS) challenge our ALLL as excessive?” To read more, click here. Data Hacking from Lost and Found by Tyler T. Tobin, GSEC/GIAC Gaining unauthorized access to banking systems requires ingenuity and creativity. Trying to hack into a fortified bank is difficult. Firewalls, intrusion prevention systems and the segregation of networks make the external security posture difficult to breech. So why not circumvent the strongest links to gain access to data? To read more about these threats, click here.   Upcoming Events ICBA Nat'l Convention & Techworld March 17-21 TX - TBA Convention & Exposition May 5-7 OK - OBA 2010 Leadership Forum & Annual Convention May 24-25 NV - NBA Annual Meeting and Bankers Conference June 6-7 CO, MT, & WY - 2010 Tri-State Bankers Summit June 13-15 Upcoming Dates Corporate Tax Returns Due 3/15/10 Form 1041 Due 4/15/10 Form 1065 Due 4/15/10 Forms 990/990-T Due 5/17/10 Deferred Costs of Originating Loans by Philip Schuyler, CPA Proper accounting treatment for loan origination fees and loan origination costs was discussed under Statement of Financial Accounting Standards No. 91 “Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loan and Initial Direct Costs of Leasing”.  Current guidance is discussed in Financial Accounting Standards Code 310-20.  Loan origination fees and origination costs should be deferred and recognized as an adjustment of yield generally by the interest method over the life of the related loan. To read more, click here.   Prospering in Challenging Times: Strategic Issues for Western Banks Please join us on Monday, April 26, for an interactive seminar designed to help board members and executive management of financial institutions understand and adapt to an ever-changing market. Knowledge, strategy and vision are critical factors that influence today’s banking industry, and this seminar will cover: Regulatory Updates – enforcement actions, bank closures and new capital requirements   Capital Raising – current sources in pricing, alternative strategies, loan sale – shrinkage and offering strategies   FDIC Transactions – inclusion in the process, evaluating opportunities, pricing and statistics and loss sharing   Mergers & Acquisitions Update – current bank evaluations, whole bank sales, branch transactions and the approval process   Current Accounting & Tax Issues – proposed loan participation changes, deferred tax assets and other accounting headaches The special guest luncheon speaker will be Doug Tumminello. Doug was part of a crew that recently set the record for the fastest unsupported group to row across the Indian Ocean. The seminar will be held at the Inverness Hotel and Conference Center, 200 Inverness Drive West, Englewood, CO. Cost is $75 per person and includes lunch and all written materials. Registration begins at 8:30am, and the seminar is from 9am to 3pm. Please RSVP by April 22. Registration information, the agenda and the speaker list can be found at http://www.rothgerber.com/showevent.aspx?Show=1306. If you have problems registering, please contact Kim Kaminski at 303-628-9665 or kkaminski@rothgerber.com.