Banking: Loans

What does a bank do with all the money it receives from deposit holders? Often, it makes loans! Lending is one of the primary ways a bank makes money. There are lots of different types of loans underwritten by banks, including commercial loans, residential mortgage loans, auto loans, agricultural loans, and construction loans, just to name a few. And you learn about all of them in this CPE-eligible, eLearning course (2.0 CPE)! What does a bank do with loans after origination? Well, some loans are held by a bank until maturity (held of investment) and some are sold after origination (held for sale). In addition, sometimes banks don’t underwrite the loans at all, instead purchasing them outright from another financial institution. All these situations have unique accounting considerations under U.S. GAAP (ASC 310), which you learn about in this online course. 

 By the end of this course, you should be able to: 

• Identify the various lending arrangements and types of loans issued by banks 
• Recall the accounting for loan fees received and loan costs incurred by banks 
• Recall the accounting for key categories of loans 
• Identify the accounting considerations when there is uncertainty about the performance of loans