FBLG Banking Letter - August 2018 Edition

2018 Independent Bank Compensation Survey 

30th Anniversary Edition!

Don't miss your opportunity to complete the 2018 Independent Bank Compensation Survey and be entered to win $500 Amazon gift card!

The survey will be available through Friday, August 17th on our website.

To read more, click here

IRS Confirms that Banking Pass-through Income is Eligible for New 20% Tax Deduction

Mark J. Corey, CPA, JD

On August 8, 2018, the IRS issued 184 pages of proposed regulations related to the Qualified Business Income (QBI) deduction for pass-through entity income.  QBI deduction is part of the Tax Cuts and Jobs Act passed in December 2017. 

QBI deduction provides parity for pass-through entity shareholders for income they receive from partnerships, s-corporations, trusts and estates. Since C-corporations receive a substantial reduction in their corporate income tax rate (down to 21%), it is equitable to give pass-through entity shareholders a break on their income tax rates. QBI deduction provides a 20% tax deduction on pass-through entity income- with several limitations. 

To read more, click here

IT Governance: No Longer an Option - It is a Must

Keith A. Ferguson, CISA, CISSP, CRISC

As the provisions of the Tax Cuts and Jobs Act continue to be implemented, unintended consequences of the new law also have been revealing themselves.

One error relates to the depreciation of a new class of property called “Qualified Improvement Property” (defined in new code section 168(e)(6)).  Qualified Improvement Property (QIP) replaces three previous classes of improvement property (Qualified Leasehold Improvements, Qualified Retail Improvement Property and Qualified Restaurant Property).  

To read more, click here.

Regulatory Relief for Community Banks

Wesley Compton

S.2155 Economic Growth, Regulatory Relief, and Consumer Protection Act ("the Act") was signed into law on May 24, 2018 by President Donald Trump. The Act passed overwhelmingly in both houses of Congress and is considered the first significant piece of legislation to amend the Dodd-Frank Act and provide regulatory relief to community banks.

Proponents of the Act argue that Dodd-Frank did not make distinctions between financial institutions based on size, risk and complexity. This, in turn, harmed smaller and less complicated financial institutions by requiring them to adhere to the same regulations as larger banks. The Act provides community banks of various sizes relief from what many consider to be burdensome compliance. This relief will allow community banks to invest their time and money into revenue-producing activities such as customer acquisition and retention.

To read more click here. 

FASB Approves Targeted Improvements to Lease Accounting Standards            

Michael P. Kurtz, CPA

In an effort to make implementation easier and reduce costs for entities FASB issued a new lease accounting standard, Accounting Standards Update (ASU) No. 2018-11, Leases (Topic 842): Targeted Improvements.

The ASU provides:

  • An option to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in its financial statements.
  • A practical expedient permitting lessors to not separate non-lease components from the lease component if certain conditions are met.

FASB Chairman, Russell G. Golden stated,

“The targeted improvements in the ASU address areas our stakeholders identified as sources of unnecessary cost or complexity in the leases standard. They represent the FASB’s commitment to proactively address implementation issues raised by our stakeholders to ensure a successful transition to the new standard without compromising the quality of information provided to investors.”

To read more, click here

August Folk Feature - Sturgis or Bust!

Kaitlyn B. Dowd

Earlier this month, motorcycle riders rode in droves from all over the nation to Sturgis, South Dakota to participate in the 78th Annual Sturgis Motorcycle Rally. Reports claim that over 500,000 vehicles entered Sturgis during the ten-day long rally, an eight percent increase compared to last year.

Our firm’s CEO, Charlie Garrison, may not have been one of the roaring masses at Sturgis this year, but a motorcycle was his first vehicle and he’s been riding since he was 16 years old. 

To read more, click here.

Upcoming Events

ICBA Commercial Lending Institute | Minneapolis, MN | August 19-24

ICBA Bank Security Institute | Minneapolis, MN | September 9-12

MO MBA Annual Convention & Expo | Lake Ozark, MO | September 10-12 

OK CBAO 2018 Annual Convention | Oklahoma City, OK | September 12-14

TX TBA Marketing Management Conference | Dallas, TX | September 12-14 

IA IBA 2018 Annual Convention | Des Moines, IA | September 16-18

ICBA Consumer Lending Institute | Minneapolis, MN | September 16-19 

ABA CFO Exchange | Austin, TX | September 17-19

WA CBW 28th Annual Convention & Trade Show | Spokane, WA | September 19-21

ICBA/NM Lenders Conference | Albuquerque, NM | September 20-21

WY WBA 2018 Lenders Conference | Cheyenne, WY | September 20-21

CO IBC 44th Annual Convention | Vail, CO | September 19-21

TX IBAT Annual Convention | San Antonio, TX | September 22-25

ABA Bank Marketing Conference | Balitmore, MD | September 23-25

ABA Trust Schools | Atlanta, GA | September 23-28

ICBA Compliance Institute | Nashville, TN | September 30 - October 5

ABA Compliance School - Foundational | Atlanta, GA | October 13-19

ICBA Annual Directors Conference | Savannah, GA | October 14-16

ABA Annual Compliance School - Advanced | Atlanta, GA | October 15-19

ABA Annual Convention | New York, NY | October 21-23 

ICBA/NM Payments University | Albuquerque, NM | October 23-24