Show:
Finance
How a Bank Makes Money
Accounting
Budget Process
100
Name 1 external Finance Interaction.
Legal Counsel Hinman, Howard, & Kattell, LLP Hogan Lovells US LLP Investment Bankers / Analysts Sandler O’Neil & Partners Guggenheim Securities, LLC Keefe, Bruyette & Woods, Inc Boenning & Scatergood Merion Research Actuary External Auditors & Tax Consultants Regulators – OCC and FRB
100
How is a loan classified on a balance sheet?
Asset
100
What is the complete record of financial transactions over the life of the company called?
General Ledger
100
Term for performing financial calculations and making recommendations based on that information.
Financial Modeling
200
Who is CFO?
Michael Chewens
200
How is a deposit classified on the balance sheet?
Liability
200
What are due to/due from accounts used for?
To move money from one bank to another
200
Term for the present value of perpetual cash flows at a future valuation date
Terminal value
300
What are 5 things that the Finance Department does
Financial reporting Profitability Budgeting/forecasting Pricing Corporate governance support Tax reporting Mergers and acquisitions Strategic planning support Payroll Invoice Processing Reconciliations General ledger and maintenance Shareholder relations Fixed Assets Investments Asset and liability management Funding / Collateral
300
What does the efficiency ratio measure?
The ability to turn resources into revenue
300
When is expense recognized under accrual accounting?
In the period in which related revenue is recognized (Matching Principle)
300
Name 2 terminologies used in the budget process.
Dilutive vs. Accretive Earn back period Run rate Cost saves Deal costs Deal structure and consideration Price/book vs. Price/tangible book Goodwill and intangibles Deposit premium and CDI Customer list
400
Name 5 internal departments we interact with
Credit administration Trust Department Mang Insurance EPIC Advisors Operations Loan Ops Facilities Risk Management and Loan Review Human Resources Corporate Counsel Board of Directors
400
Name 4 Noninterest Expenses
Salaries and employee benefits Occupancy Equipment Data processing and communications Office supplies and postage Amortization of intangibles Loan collection and other real estate owned Advertising FDIC Expense Other operating expenses
400
Revenue that is recognized after cash is received
Deferred revenue
400
Name 2 types of financial models
Merger & acquisition Branches, banks, insurance agencies, etc. De novo branches (new branch) Branch closure and/or consolidation Capital modeling Dividend increase Buying back shares Leverage capacity
500
What is a bank's primary earning source?
Difference between interest earned on loans and investments and interest paid on deposits and borrowings.
500
Name 5 Types of Noninterest Income
Monthly servicing fees Overdraft fees Debit card/ATM income Financial services group revenues Retirement plan administration fees EPIC Advisors TPA Insurance revenue
500
What are the 3 components of a general ledger account?
Company number Account number Cost center
500
Put the budget timeline in the correct order: 1. Resubmit rejected budget for approval submission, if applicable 2. Conduct management interviews 3. Budget roll out 4. Approval by the Board of Directors 5. Finance accepts/rejects budget submission 6. Budget submitted to Finance for approval
3. Budget roll out 6. Budget submitted to Finance for approval 5. Finance accepts/rejects budget submission 1. Resubmit rejected budget for approval submission, if applicable 2. Conduct management interviews 4. Approval by the Board of Directors