3 Key Attributes to Look for When Evaluating Reserve Calculations

Jan 21, 2015

There are three key factors that examiners look for when examining an institution's allowance for loan and lease loss calculation. The first of the three involves loan classification and making sure the institution has a defined set of criteria for determining which loans are to be classified as ASC 450-20 (FAS 5) and which to be classified as ASC 310-10-35 (FAS 114). The Sageworks consultant walks through specific examples of criteria to be used to determine this, and then continues to speak on the other two main factors that examiners look for when evaluating an institution's ALLL.