Whitepapers

CECL: Where Are We Now? 2019 Survey Results

For the third year in a row, Abrigo (formerly MST, Sageworks, and Bankers Toolbox) surveyed 125 individuals at a wide range of financial institutions to gauge CECL preparedness. The 2019 survey shows that as the Q1 2020 compliance date looms for SEC registrants, institutions of all types are making progress – but not enough, according to CECL experts.

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.
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Webinars

How a Financial Institution is Getting CECL Ready: Key Decisions and Steps in the CECL Transition

In this webinar, hear from a VP/Controller, VP/Director of Credit Risk, and Senior Credit Risk Analyst at Great Southern Bank, and from the Bank’s Advisory team at Abrigo on their experiences with CECL so far, the decisions they have or are planning to make, and their expectations for the future. Great Southern Bank operates out of Springfield, Mo., and has total assets of approximately $4 billion.

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.
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Videos

Video: 5 Steps for CECL implementation planning

The FASB issued the final CECL standard on June 16. In this video, Abrigo' Neekis Hammond details 5 key steps for bank and credit union management teams to consider in planning for a smooth transition to a CECL model for their institution.

Neekis Hammond is a senior risk management consultant at Abrigo. He provides financial institutions with advisory services, leads thought leadership, develops market strategies and consults with product development on solution requirements and accuracy.

When Should You Use a Range for the ALLL?

A Abrigo consultant describes the benefit of using an ALLL range. Namely, he mentions that the range demonstrates the thoroughness of the calculation in that it requires the institution to go through some sort of scenario building. At the end of the day, however, he advocates for a single number as opposed to a range for institutions to rely upon as their ending ALLL figure.
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Blog

2018 Lending & Risk Summit: Why Attend?

The 7th annual Lending & Risk Management Summit presented by Abrigo will be held September 24-26 in Chicago, Illinois. Approximately 200 bank and credit union executives have already registered to join their peers, industry experts, and Abrigo. Why should you join the group?

Measuring Credit Risk in Consumer Loans under CECL

A recent poll by Abrigo finds that many financial institutions have work to do when it comes to gathering data to assess credit risk in their consumer loan portfolios under FASB’s new standard for measuring current expected credit losses, known as CECL.
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Slides

FASB’s CECL: How to Prepare Now

This slide deck explains myths related to the FASB's CECL model and what institutions can be doing now in preparation. One of the main issues institutions will face in transitioning to an expected loss model is the influx of data requirements that will be necessary under the new model. This document describes what data will be needed, and offers a few recommendations for data governance, segmentation and model selection.

Slides: Scenario Analysis

Download the slides from our recent, on-demand scenario anaysis webinar. The presentation includes key factors to consider, example scenarios, key CECL preparation information and tips for improving or beginning scenario analysis in your institution.
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Other

ASC 310-10-35 (FAS 114) Impairment Worksheet

Proper FAS 114 impairment analysis is critical for a bank evaluating the collectibility of its loans and for determining the proper reserve calculation. Use this downloadable ASC 310-10-35 (FAS 114) loan impairment worksheet for a simplified, collateral-based analysis. This worksheet is formatted to analyze one loan at a time with one piece of collateral.
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