TDR: ‘Trouble’ is in the name - 1/19/2012
Identifying and dealing with Trouble Debt Restructuring or TDR continues to be an issue with banks and now credit unions. This article discusses debt restructuring in general, troubled or not, then looks at the regulated aspects of commercial and consumer TDR with a focus on what is new for 2012.
Read More » MST National User Group Meeting May 7-8 2012 In Las Vegas - 12/1/2011
MST National User Group Conference will focus on specifics that will impact the loan loss reserve, credit quality, capital, regulation, legislation, and accounting standards in both the near and distant future.
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Agenda » FDIC Subject Matter Expert On ALLL Joins MST - 10/1/2011
Joe Watson, retired annuitant and senior financial institution examiner of the Federal Deposit Insurance Corporation (FDIC), is joining MainStreet Technologies, Inc. (MST) as an exclusive key advisor and resource for their clientele.
Read More » MST 2011 Survey of Community Banks - 8/15/2011
Bankers from across the country express a variety of sentiments which include concern, uncertainty, confidence among others.
Read More » A Case For Migration Analysis
Prior to the “great recession” banks as a whole paid little attention to the Allowance for Loan and Lease Losses (ALLL), also known as their loss provision. That all changed in 2007. Over the next two years, the combination of decreased interest income and increased losses caused the ALLL to skyrocket from 11 percent of net interest income to 68 percent in 2009. There has, however, been improvement....
Read More » Excel Does Not Guarantee Excellence
The spreadsheet has traditionally been the Holy Grail for those charged with financial management and analysis. Various studies report that businesses rely heavily on spreadsheets, particularly for planning and budgeting. Spreadsheets have a leading role in the way we do business today, and we will not relinquish that position anytime soon - especially in the banking industry....
Read More » Another Reason For Banker Insomnia
The revelation last fall of missing or improper documents that may well invalidate the foreclosure processes of several mortgage and servicing companies is another black-eye for banking. However, poor record management in the financial industry is not really news. It only seems so because news sources found one of the more public consequences of poor operational practices....
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SNL Article » Security Key Concern When Outsourcing IT
Cloud computing has been called “one of the most significant shifts in information technology many of us are likely to see in our lifetimes.” While this is the technology trend of the moment, the cloud is simply another version of outsourcing information technology. There is a growing appetite in the banking industry for outsourcing solutions that both use and create data specific to an institution....
Read More » New Efficiencies in Loan Portfolio Risk Reduction
As community bankers look for solutions to reduce the risk in their loan portfolios, to placate regulators as well as protect shareholders, they recognize the need for a system for tracking and real-time reporting of loan document exceptions and deviations. Such a system is the first and fundamental step in building an effective risk reduction program....
Read More » Loans Gone Bad
Not that community banking has ceased to be about personal relationships. But the environment around those relationships has changed. In our mobile society, consumers move in bigger circles. They live, work, have a second home, retire and do business in many places. They also borrow money from many sources, and increasingly so given the ease of shopping rates and terms courtesy of the Internet....
Read More » ALLL: 10 Principles For Reviewing Loans
However, MST has been successful in garnering the support of federal regulators who understand that we design solutions that help banks assess and protect their loan portfolios against losses. They are providing critical direction gained from their experiences in the field with community banks, direction we consider closely as we update our products....
Read More » Common Mistakes In Determining ALLL
The content for Part I of “Common Mistakes in Determining ALLL” is based on interviews with FDIC examiners. The “common mistakes” represent the objective observations of examiners currently working with community banks. Part II of the paper provides information on the MST Loan Loss Analyzer, which automates the calculation and documentation for estimating ALLL, thereby helping banks avoid these errors and overcome other challenges in determining ALLL....
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