How does your ALLL stack up to your peers’?
Mar 18, 2015
More times than not, bankers are comfortable with their figures and confident in their calculations. However, it always adds an extra degree of reassurance when you see that those around you are arriving at a similar ending number.
For those interested in viewing how their institution stacks up against the crowd, McGladrey recently published a useful resource to allow bankers to do just that. In their “National Loan Loss Reserve Survey,” McGladrey provides an overview of the average ending figures for 306 banks with respect to total reserve, unallocated reserve, ASC 450-20 (FAS 5), ASC 310-10-35 (FAS 114) and various other components of the ALLL calculation.
Some key takeaways include:
- Less than half of the institutions surveyed consider themselves knowledgeable on the FASB’s impending CECL model
- Historical loss factors are largely decreasing from the previous year
- Local economic conditions were viewed as stable or improving in all regions
To see more statistics, including those for your particular region, download McGladrey’s National Loan Loss Reserve Survey.