Financial institutions across the country are now actively preparing for the ALLL transition from the incurred loss to expected loss models. By now, most banks and credit unions are well aware of the methodology options under CECL. However, many are still having challenges interpreting results from their modeling exercises. Common questions that arise include:

What happens if I don’t have enough loan-level historical data?
What do I do if my results are zero?
Are there shortcuts for anticipating when certain approaches won’t work before building models to test?

Join the Sageworks consulting team for an interactive walkthrough of these common modeling problems and questions. They will discuss how results can be interpreted and pivoted to other approaches that may provide more transparent outcomes.

As institutions approach the transition from the incurred loss model to the current expected credit loss model for estimating the ALLL, there are many questions around the subjective aspects of the new standard. This session will look at the relationship between qualitative adjustments and “reasonable and supportable” forecasts under CECL estimates and key considerations for how institutions will apply them.

The transition to the FASB’s CECL accounting standard is well underway for many financial institutions. In this panel discussion, hear from a banker, three auditors and two consultants from Sageworks, MST, Grant Thornton, BKD, Camden National Bank and PWC who are helping thousands of institutions through this critical change.