Whitepapers

The 7-Step Guide to an Effective, Dynamic ALCO

The asset/liability management process at a financial institution should not be limited to one that “checks the box” of meeting regulatory requirements. Rather, institutions and Asset/Liability Management Committees (ALCOs) with a dynamic ALCO process are able to inform decisions related to strategy as well as risk management.

Deposit Pricing: Mitigating Interest Expense in Today’s Rising Rate Environment

Financial institutions grappling with rising rates for retail deposits and increased competition for funding can benefit from understanding and practicing deposit pricing strategies. Deposit pricing that incorporates segmentation, in particular, can mitigate cost changes, help raise funding, or do both.
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Webinars

Audit Expectations for a CECL Practice

The AICPA CECL auditing subgroup is meeting regularly to set industry-wide standards for how CECL will be approached from an audit and assurance perspective. Early takeaways from the group’s work have indicated a clear bias toward practices that produce a sound, defensible allowance for credit losses as well as model evaluation efforts that ensure internal controls and transparency.

CECL: Synthesizing Complexities to a Board

The current expected credit loss standard, or CECL, has been called one of the biggest changes ever to accounting for financial institutions, and every bank and credit union in the U.S. must assess CECL’s impact on its processes and on the allowance. With the change comes new roadblocks, one of which is explaining the complexities of CECL to a board in a straight-forward and clear manner.
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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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