More ALLL Coverage

Could CECL changes be coming?

Could CECL changes be coming?

The spotlight is shining brightly this month on potential changes to the current expected credit loss (CECL) model, even though ...
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What if your CECL results aren't what you expected?

What if your CECL results aren’t what you expected?

Financial institutions across the country are now actively preparing for the ALLL transition from the incurred loss to expected loss ...
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FASB seeks comments on proposed CECL updates on accrued interest, recoveries, prepayments

FASB seeks comments on proposed CECL updates on accrued interest, recoveries, prepayments

Financial institutions and other parties interested in the current expected credit loss model, or CECL, have until Dec. 19 to ...
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board-meeting

FASB meeting: New disclosure requirements related to gross write-offs and recoveries

The Financial Accounting Standards Board (FASB) met today to discuss the current expected credit loss (CECL) accounting standard and expand ...
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CECL survey implementation poll

CECL survey: Most bankers to use 3rd-party vendors, advisors for CECL

A majority of bankers expect their financial institutions to use third-party vendors or a combination of advisors and third-party vendors ...
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Large banks push for a CECL extension

Large banks push for a CECL extension

The Bank Policy Institute (BPI), an organization conducting research and advocacy on behalf of America's leading banks, recently wrote a ...
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Latest Resources

Answering CECL questions

CECL in the News: What’s New & How It Might Affect Your Institution’s CECL Implementation

With less than a year until public business entities must begin complying with CECL, banks and credit unions have been fervently beginning transition efforts, and their preparations are taking center stage in regulatory and financial news. Important CECL news updates and potential changes to how institutions implement the accounting standard have come from the Financial Accounting Standards Board (FASB) and their Transition Resource Group, bank and securities regulators, and proposals by industry associations.
CECL Modifications of Typical ALLL Disclosures

CECL Modifications of Typical ALLL Disclosures

With CECL comes change in the accounting for the allowance for loan and lease losses (ALLL) from an incurred loss model to an allowance for credit losses (ACL) using the current expected credit loss model. Because financial institutions will account for the loss allowance in a different way, and the Financial Accounting Standards Board (FASB) modified the disclosure requirements, the typical ALLL disclosures in the financial report will need to be modified to cover CECL. This illustrates how disclosures will change and gives sample wording and tables.
CECL and the CFO: Think implications, not just implementation

CECL and the CFO: Think implications, not just implementation

We’ve been hearing it from all sides: CECL will have an institution-wide impact – greater, it is proposed, than any accounting change in banking history. Considering the breadth and depth of the impact, the transition to, implementation of, and ongoing execution of CECL demand oversight from the institution’s top executives, and in particular, the CFO.

Tip Of The Day

Begin to develop multiple scenarios for your ALLL. Not only will it prove examiner friendly, but it will provide you with additional insight into the impact of changing variables

Poll

What type of data do you anticipate leveraging for your CECL calculation?

  • 1-5 years of detailed loan level data
  • 5+ years of detailed loan level data
  • 1-5 years of aggregate (pool level) data
  • 5+ years of aggregate (pool level) data
  • I don't know the difference

ALLL.com Insiders

CFO Corner -- “ALLL” about CECL

CFO Corner — “ALLL” about CECL

In this occasional feature, CFOs from financial institutions share their approaches to the ALLL and to the CECL transition, as ...
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The biggest initial impact of CECL on financial institutions

The biggest initial impact of CECL on financial institutions

Most financial institutions understand CECL, and more specifically applying the CECL model to their loan portfolio, represents the most significant ...
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Validating ALLL models under CECL – What might change?

Validating ALLL models under CECL – What might change?

What does model validation mean for the allowance for loan and lease losses and what will it mean under CECL? ...
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