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loan accounting

Accounting

 

Core banking systems do not address all loan accounting and reporting needs, which is why many financial institutions employ spreadsheets and manual processes.

EVOLV® eliminates the manual processes and spreadsheets by automating all the loan accounting functions (data, calculations, processes, workflows and reporting) that are not being addressed by core banking systems. As a complement to your core banking system, EVOLV® manages your entire loan portfolio, enabling you to realize far greater efficiencies and controls, to be prepared for any future change and to analyze results in a manner that was previously unachievable through your current process.

Complete Loan Portfolio Accounting

It is easy to remember how EVOLV addresses loan accounting: all loans, all accounting treatments, all processes, all workflows, all reporting needs, all in one place. When we say "complete," we are not just referring to automating rules or accounting calculations. We are referring to EVOLV's end-to-end capabilities that leverage EVOLV Smart Data and the core set of EVOLV Platform Engines, including: (1) loan level data capture, enrichment, and accounting event identification, (2) workflow processing, (3) loan level sub-ledger engine, (4) calculation engine, and (5) dynamic reporting and analytics engine. In addition, EVOLV synthesizes and tightly integrates data elements and concepts normally separated in disparate risk and finance systems, in a single platform designed to meet all complex loan accounting treatments and analytics.

Through our sophisticated processing engines, EVOLV handles the entire lifecycle of the loan, from accounting treatment identification to termination and everything in between. EVOLV’s lifecycle management design provides increased transparency and control by completely eliminating the data migration and reconciliation headaches associated with using multiple point and/or manual solutions. In addition, EVOLV’s reporting capabilities makes even the most complex disclosure simple through its innovative data architecture that maintains loan-level results against all key risk and finance reporting dimensions. EVOLV’s unique SaaS delivery model also allows a financial institution to choose how to integrate EVOLV into their infrastructure, meaning that EVOLV can serve as the subledger or can interface seamlessly with existing accounting sub-systems.

In support of your loan accounting process, EVOLV enables you to

  • Convert your resources from "processing" to "analyzing" by automating manual processes
  • Know what's going to happen before you close; make better decisions
  • Automate disclosures and performance reporting to put yourself in a position to explain / defend your results

EVOLV is the only solution in the market with out-of-the box capabilities supporting complete loan portfolio accounting, including the following:

  • Fee amortization under ASC 310-20 (FAS 91) including modification testing in accordance with ASC 310-20-35 (EITF 01-7) and ASC 470-50-40/55 (EITF 96-19)
  • Troubled Debt Restructurings in accordance with ASC 310-40 (FAS 15)
  • Accounting for held-for-sale (HFS) loans and re-designations under ASC 948-310 (FAS 65)
  • Fair value option under ASC 825-10-25 (FAS 159)
  • Non-accrual shadow accounting under both the cost recovery and cash basis method
  • Real Estate Owned (REO) asset accounting for held-for-sale properties in accordance with ASC 310 and ASC 360
  • M&A Accounting for purchased credit impaired (PCI) loans under ASC 310-30 (SOP 03-3) and ASC 805 (FAS 141R) impairment testing
  • Reserve accounting and reporting including ASC 450 (FAS 5) , ASC 310-10-35 (FAS 114), and ASC 310-30 (SOP 03-3)
  • Forecasting of income (including amortization) on all loans in portfolio
  • Forecasting of income and provision on PCI loans and indemnification assets
  • Forecasting impacts of management decisions, such as loan sales and modification programs
  • Automated SEC Disclosures with drill-down capability to the loan level
  • Automated Regulatory Reporting impacting loans
  • Period-over-period analytics
  • Roll-forward reporting at the loan-level (both accounting and reserving)
  • Ad hoc report creation capabilities

EVOLV was designed based on the assumption that change is a constant. New accounting rules and adaptations of current accounting rules arise with frequency. Whether it’s regulatory-driven, market-driven, or company-driven, your loan portfolio accounting process must be in a position to evolve to meet new demands. Our state-of-the-art, cloud-based vertical SaaS delivery model means you never have to worry about your accounting system being out of date – we change whenever the regulations change and are uniquely positioned to ensure those changes are made available to all our customers faster than any other system or home-grown solution.

Solve for today's challenges while being prepared for tomorrow's changes. Don't allow the finance function to be a barrier to change but, instead, an enabler of growth. These are the tenets that drive progressive and growth-oriented financial institutions and these are the tenets that drive how EVOLV is designed.

For more information call us at 703-342-0040 or Contact Us.

 

Core banking systems do not address all loan accounting and reporting needs, which is why many financial institutions employ spreadsheets and manual processes.

EVOLV® eliminates the manual processes and spreadsheets by automating all the loan accounting functions (data, calculations, processes, workflows and reporting) that are not being addressed by core banking systems. As a complement to your core banking system, EVOLV® manages your entire loan portfolio, enabling you to realize far greater efficiencies and controls, to be prepared for any future change and to analyze results in a manner that was previously unachievable through your current process.

Complete Loan Portfolio Accounting

It is easy to remember how EVOLV addresses loan accounting: all loans, all accounting treatments, all processes, all workflows, all reporting needs, all in one place. When we say "complete," we are not just referring to automating rules or accounting calculations. We are referring to EVOLV's end-to-end capabilities that leverage EVOLV Smart Data and the core set of EVOLV Platform Engines, including: (1) loan level data capture, enrichment, and accounting event identification, (2) workflow processing, (3) loan level sub-ledger engine, (4) calculation engine, and (5) dynamic reporting and analytics engine. In addition, EVOLV synthesizes and tightly integrates data elements and concepts normally separated in disparate risk and finance systems, in a single platform designed to meet all complex loan accounting treatments and analytics.

Through our sophisticated processing engines, EVOLV handles the entire lifecycle of the loan, from accounting treatment identification to termination and everything in between. EVOLV’s lifecycle management design provides increased transparency and control by completely eliminating the data migration and reconciliation headaches associated with using multiple point and/or manual solutions. In addition, EVOLV’s reporting capabilities makes even the most complex disclosure simple through its innovative data architecture that maintains loan-level results against all key risk and finance reporting dimensions. EVOLV’s unique SaaS delivery model also allows a financial institution to choose how to integrate EVOLV into their infrastructure, meaning that EVOLV can serve as the subledger or can interface seamlessly with existing accounting sub-systems.

In support of your loan accounting process, EVOLV enables you to

  • Convert your resources from "processing" to "analyzing" by automating manual processes
  • Know what's going to happen before you close; make better decisions
  • Automate disclosures and performance reporting to put yourself in a position to explain / defend your results

EVOLV is the only solution in the market with out-of-the box capabilities supporting complete loan portfolio accounting, including the following:

  • Fee amortization under ASC 310-20 (FAS 91) including modification testing in accordance with ASC 310-20-35 (EITF 01-7) and ASC 470-50-40/55 (EITF 96-19)
  • Troubled Debt Restructurings in accordance with ASC 310-40 (FAS 15)
  • Accounting for held-for-sale (HFS) loans and re-designations under ASC 948-310 (FAS 65)
  • Fair value option under ASC 825-10-25 (FAS 159)
  • Non-accrual shadow accounting under both the cost recovery and cash basis method
  • Real Estate Owned (REO) asset accounting for held-for-sale properties in accordance with ASC 310 and ASC 360
  • M&A Accounting for purchased credit impaired (PCI) loans under ASC 310-30 (SOP 03-3) and ASC 805 (FAS 141R) impairment testing
  • Reserve accounting and reporting including ASC 450 (FAS 5) , ASC 310-10-35 (FAS 114), and ASC 310-30 (SOP 03-3)
  • Forecasting of income (including amortization) on all loans in portfolio
  • Forecasting of income and provision on PCI loans and indemnification assets
  • Forecasting impacts of management decisions, such as loan sales and modification programs
  • Automated SEC Disclosures with drill-down capability to the loan level
  • Automated Regulatory Reporting impacting loans
  • Period-over-period analytics
  • Roll-forward reporting at the loan-level (both accounting and reserving)
  • Ad hoc report creation capabilities

EVOLV was designed based on the assumption that change is a constant. New accounting rules and adaptations of current accounting rules arise with frequency. Whether it’s regulatory-driven, market-driven, or company-driven, your loan portfolio accounting process must be in a position to evolve to meet new demands. Our state-of-the-art, cloud-based vertical SaaS delivery model means you never have to worry about your accounting system being out of date – we change whenever the regulations change and are uniquely positioned to ensure those changes are made available to all our customers faster than any other system or home-grown solution.

Solve for today's challenges while being prepared for tomorrow's changes. Don't allow the finance function to be a barrier to change but, instead, an enabler of growth. These are the tenets that drive progressive and growth-oriented financial institutions and these are the tenets that drive how EVOLV is designed.

For more information call us at 703-342-0040 or Contact Us.

loan accounting GAAP Loan Accounting: Why Bank CFO Organizations Need Their Own Loan Accounting System Solutions 1 loan accounting

CASE STUDIES

EVOLV is market tested and proven for all sizes of banks and for all loan products. EVOLV has been architected to fit within your structure to address your specific gaps. There are likely many aspects of your institution that are working effectively and therefore should integrate with EVOLV or you may elect to utilize EVOLV meet all of your needs. Either way, the good news is that EVOLV can be molded in a manner that is the best solution for you. See below some case studies of financial institutions that implemented EVOLV in support of their loan accounting processes:

$300b Financial Institution Needs Overall Loan Accounting Platform  Learn More

Overall, the financial institution maintained numerous servicing systems, and outside of those servicing systems, leveraged sub-optimal processes to address more complex accounting items such as loan level FAS 91 amortization, non-accrual and re-accrual accounting, purchase credit impaired accounting, modification testing and performance reporting, cash flow modeling in support of certain accounting processes, and overall reporting. EVOLV was implemented over a series of phases that enabled the financial institution to consolidate many applications, reduce overall close times, enable greater analytics on the loan portfolio, realize significant ROI, and enable them to initiate various growth strategies that would not be unhindered by gaps in the back office.

$30b Financial Institution Needs Loan Level Fee Amortization for Complex Structures  Learn More

A $30b financial institution with a loan portfolio filled with complex structures and fee types required a solution that would fully automate FAS 91 amortization and modification testing while integrating fully with upstream servicing systems and the downstream GL. EVOLV was implemented and enabled the financial institution to eliminate audit and regulatory concerns by not just automating the process, but doing so in a manner that performed loan level and supplied loan level results and analytical capabilities.

$18b Financial Institution Struggles with Changes to Regulatory Requirements Governing Accounting  Learn More

A $18b financial institutions looked for significant efficiency gains, and thereby significant control risk reduction, in their overall loan accounting group, with particular focus on eliminating the various manual processes / spreadsheets/ point solutions supporting FAS 91, TDR Accounting, Non-Accrual Accounting, and overall Loan Reporting. In the midst of this process, the bank acquired another bank, requiring additional capabilities around purchase accounting. EVOLV was implemented for all capabilities, enabling the bank to bring on the acquisition, and to later focus on eliminating manual processes associated with the other accounting areas.

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