For individual loans the Corporation considers the expectation of forbearance, payment holidays, and events such as unemployment, bankruptcy, divorce, or death. When a loan has shown a significant increase in credit risk since origination, the Corporation records an allowance for the life time expected credit losses. Stage 2 loans also include facilities, where the credit risk has improved and the loan has been reclassified from Stage 3 to Stage 2.
Payments under a non-cancellable operating lease arrangement, where the risks and rewards incidental to ownership of an asset substantially vest with the less or, are charged to the Statement of Profit and Loss on a straight-line basis over the lease term, unless another systematic basis is more appropriate. Changes in the fair values of derivative instruments that do not qualify for hedge accounting are recognized immediately in the Statement of Profit and Loss. Any discount/premium on account of these investments held as long-term investments, is recognized over the life of the security on a pro-rata basis.
The loss allowance on forborne loans is generally measured based on 12-month ECL when there is evidence of the borrower »s improved repayment behavior following modification leading to a reversal of the previous significant increase in credit risk. The Corporation monitors financial assets measured at amortised cost or fair value through other comprehensive income that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons are consistent with the objective of the business for which the asset was held. For credit-impaired financial assets, interest income is calculated by applying the EIR to the amortised cost of the credit-impaired financial assets (i.e. the gross carrying amount less the allowance for expected credit losses). Remeasurements are recognised in the Other Comprehensive Income in the period in which they occur. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of planned assets.
- Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961 (the « Income Tax Act »).
- Stage 2 loans also include facilities, where the credit risk has improved and the loan has been reclassified from Stage 3 to Stage 2.
- Cross currency interest rate swaps are recorded by marking the foreign currency component to spot rate.
- A loss allowance for lifetime ECL is required for a financial instrument if the credit risk on that financial instrument has increased significantly since initial recognition.
- In particular, such assignment is consistent with a business model whose objective is to hold financial assets in order to collect contractual cash flows.
Dividends are recognised in profit or loss as dividend income when the right to receive payment has been established, except when the Corporation benefits from such proceeds as a recovery of whole or part of the cost of the instrument, in which case, such gains are recorded in OCI. Equity instruments at FVOCI are fair valued at each reporting date and not subject to an impairment assessment. United Bankshares, Inc. operates as the bank holding company for United Bank and United Bank that provide commercial and retail banking services and products primarily in the United States. The company accepts checking, savings, and time and money market accounts; individual retirement accounts; and demand deposits, statement and special savings, and NOW accounts. It also offers personal, commercial, floor plan, and student loans; construction and real estate loans; and consumer loans, including credit card and home equity loans.
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As per the arrangement, loans assigned are substituted by newly sourced loans by the third party which ensures contractual cash flows are collected by the Corporation. Accordingly, all such outstanding loans have been classified at amortised cost under the current Business model. Assignment of loans that occur for other reasons, such as assignment made to manage credit concentration risk (without an increase in the assets » credit risk), is consistent with a business model whose objective is to hold financial assets in order to collect contractual cash flows.
If the hedging instrument expires or is sold, terminated or exercised, or where the hedge no longer meets the criteria for hedge accounting, the hedge relationship is discontinued prospectively. If the relationship does not meet hedge effectiveness criteria, the Corporation discontinues hedge accounting from the date on which the qualifying criteria are no longer met. If the hedged item is derecognised, the unamortised fair value adjustment is recognised immediately in the statement of profit and loss. The financial instruments hedged for interest rate risk in a fair value hedge relationship is fixed rate debt issued and other borrowed funds. Assets and liabilities in foreign currencies are converted at the rates of exchange prevailing at the year- end, where not covered by forward contracts.
United Bankshares Misses Q4 EPS by 4c
The number of https://1investing.in/ shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate. Provisions are established on a collective basis against loan assets classified as âStandardâ to absorb credit losses on the aggregate exposures in each of the Corporation »s loan portfolios based on the NHB Directions. A higher standard asset provision may be made based upon an analysis of past performance, level of allowance already in place and Management »s judgments. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate. Allowances for credit losses are made on an individual basis at rates prescribed under the NHB Directions unless, the management estimates that a higher individual allowance is required to reduce the carrying value of loan asset, including accrued interest, to its estimated realizable amount. The fair value of the underlying security is taken into consideration to estimate the realizable amount of the loan.
Current and deferred taxes relating to items directly recognized in reserves are recognized in reserves and not in the Statement of Profit and Loss. Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961 (the âIncome Tax Actâ). Goods and Services tax input credit is recognised for in the books in the period in which the supply of goods or service received is recognised and when there is no uncertainty in availing/utilising the credits. Short term and liquid investments being subject to more than insignificant risk of change in value, are not included as part of cash and cash equivalents. The Corporation recognises either a servicing asset or a servicing liability for servicing contract.
Historical default rate are further calibrated with forward looking macroeconomic factors to determine the PD. Â¢ in all other cases, the fair value will be adjusted to defer the difference between the fair value at initial recognition and the transaction price. Dividend income is recognised when the Corporation »s right to receive dividend is established. Â¢ Level 3 where unobservable inputs are used for the valuation of assets or liabilities. The financial statements are presented in Indian Rupees (?) which is the functional and the presentation currency of the Corporation and all values are rounded to the nearest crore with two decimals, except when otherwise indicated.
184.108.40.206 Solely Payments of Principal and Interest (âSPPIâ) on the principal amount outstanding
Depreciation in respect of finance leases is provided on the straight line method over the primary period of lease or over the specified period, as defined under Section 205 ofthe CompaniesAct, 1956, whichever isshorter. Depreciation in respectof Leasehold Improvements is provided on the straight-line method over the primary period of the lease. Cash flows are reported using the indirect method, whereby profit/ before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities ofthe Corporation are segregated based on the available information.
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date. The Corporation »s policy is to carry adequate amounts in the Provision for Non-Performing Assets Account and the Provision for Contingencies Account to cover the amount outstanding in respect of all non-performing assets and standard assets respectively as also all other contingencies. All loans and other credit exposures where the instalments, interest are overdue for ninety days and more are classified as non-performing assets in accordance with the prudential norms prescribed by the National Housing Bank . Monetary items represented by currency swap contracts are recorded at closing rate.
B) Issue of 6,43,29,882 equity shares of face value of Rs, 2 each on a preferential basis at a price of Rs, 1,726.05 per Equity Share. The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting. Transfer of pools of mortgages under the direct assignment route involve transfer of proportionate shares in the pools of mortgages. Such transfers result in derecognition only of that proportion of the mortgages which meets the derecognition criteria.
However, if hedged cash flows are no longer expected to occur, the profit or loss against the corresponding derivative contract, accumulated in the Cash Flow Hedge Reserve, is immediately released through the Statement of Profit and Loss. For derivative contracts designated as cash flow hedges, the hedging instrument is measured at fair value and any gain or loss that is determined to be an effective hedge is recognized within equity i.e., Cash flow Hedge Reserve. The Corporation monitors all financial assets, including loan commitments and financial guarantee contracts issued that are subject to impairment requirements, to assess whether there has been a significant increase in credit risk since initial recognition. If there has been a significant increase in credit risk the Corporation measures the loss allowance based on lifetime rather than 12-month ECL. The Corporationâs accounting policy is not to use the practical expedient that financial assets with âlowâ credit risk at the reporting date are deemed not to have had a significant increase in credit risk. As a result the Corporation monitors all financial assets, issued loan commitments and financial guarantee contracts that are subject to impairment for significant increase in credit risk.
When a loan is identified as a âLoss Assetâ that is adversely affected by a potential threat of non-recoverability, the outstanding balance is fully written off or fully provided for. The stock options granted to employees pursuant to the Corporationâs Stock Options Schemes, are measured at the fair value of the options at the grant date using Black-Scholes Model. The fair value of the options determined at grant date is accounted as employee compensation cost over the vesting period on a straight line basis over the period of option, based on the number of grants expected to vest, with corresponding increase in equity. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the statement of profit and loss.
2.3 Classification and Subsequent Measurement of Financial Assets and Liabilities
Â¢ the amount initially recognised less, where appropriate, cumulative amount of income recognised in accordance with the Corporation »s revenue recognition policies. Fee and commission income include fees other than those that are an integral part of EIR. The Corporation recognises the fee and commission income in accordance with the terms of the relevant contracts / agreement and when it is probable that the Corporation will collect the consideration. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Corporation and the revenue can be reliably measured and there exists reasonable certainty of its recovery. Accounting policies are consistently applied except where a newly-issued Ind AS initially adopted or a revision to an existing Ind AS requires a change in the accounting policy. These values are calculated using the oldest historical opening price available and taking into account all splits and dividends history.
Brokerage, other than incentive brokerage, and service charges on deposits are amortised over the period of the deposit. Incentive brokerage, which is payable to agents who achieve certain collection targets, is charged to the Profit and Loss Account. Leased Assets are accounted in accordance with the Accounting Standard on ‘Leases’ notified by the Companies Rules, 2006. Incentive brokerage, which is payable to agents who achieve certain collection targets, is charged to the Statement of Profit and Loss. Depreciation on all Fixed Assets other than Leased Assets and Leasehold Improvements, is provided for the full year in respect of assets acquired during the year. Leased Assets are accounted in accordance with the Accounting Standard on »Leases » notified by the Companies Rules, 2006.
United Bankshares Inc (UBSI)
Transfers of pools of mortgages under the current programs involve transfer of proportionate shares in the pools of mortgages. Such transfers result in de-recognition only of that proportion of the mortgages as meet the de-recognition criteria. The portion retained by the Corporation continue to be accounted for as loans as described above. These funds and the schemes there under are recognized by the Income-tax authorities and administered by various trustees. 3.8 The Board of Directors have proposed dividend on equity shares at Rs, 16.50 per share at their meeting held on April 30, 2018. As per the Companies Amendment Rules, 2016, the dividend will be recorded after the approval in ensuing Annual General Meeting.
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Intrinsic value is the amount by which the quoted what are some examples of financing activities on price of the underlying share exceeds the exercise price of the option. Since the options under ESOS-14, ESOS-11, ESOS-08 and ESOS-07 were granted at the market price, the intrinsic value of the option is Nil. The Corporation borrows funds, primarily in Indian Rupees, and carry a fixed rate or floating rate of interest. 6.1 Provisions and Contingencies includes provisions for standard assets and all other contingencies.
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The unamortized exchange difference is carried in the Balance Sheet as âForeign Currency Monetary Item Translation Difference Accountâ. Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. If there is a significant difference in present value, the Corporation deems the arrangement substantially different, leading to derecognition. The Corporation measures ECL on an individual basis, or on a collective basis for portfolios of loans that share similar economic risk characteristics. The measurement of the loss allowance is based on the present value of the assetâs expected cash flows using the assetâs original EIR, regardless of whether it is measured on an individual basis or a collective basis.
Capitalised software is amortised over a period of four years on a straight-line basis. 20.6 Current maturities of staff loans includes amounts due from the directors Rs. 0.05 crore (Previous Year Rs. 0.02 crore) . 7.1 All secured short-term borrowings are secured by negative lien on the assets of the Corporation and/or mortgage of property as the case may be, subject to the charge created in favour of its depositors pursuant to the regulatory requirement under Section 29B of the National Housing Bank Act, 1987. 4.9 As at March 31, 2015, the Corporation »s outstanding subordinated debt is Rs. 6,475 crore (Previous Year Rs. 3,475 crore). These debentures are subordinated to present and future senior indebtedness of the Corporation and qualify as Tier II capital under National Housing Bank guidelines for assessing capital adequacy.
Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognized as a liability at the present value of the defined benefit obligation as at the balance sheet date, based on actuarial valuation. The Corporation recognizes general provision towards standard assets as prescribed under the Housing Finance Companies Directions, 2010, (the âNHB Directionsâ) as updated from time to time. In addition to the above, the Corporation, on a prudent basis, recognizes provisions on standard assets, on the basis of consideration of economic and business conditions impacting a specific exposure or a group of advances.
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