After a Significant Change in the ALLL, What’s Viewed with Greatest Scrutiny by Examiners?

Jan 21, 2015

Sageworks consultants discuss where examiners will look after a significant change to an institution's ALLL. "If there's a blindfold on the examiner and he/she walks into your institution, they are going to point to the qualitative factor section of the ALLL first," says Ed Bayer. He also mentions cash flow impairment analysis assumptions and recommends institutions be prepared to defend against any comments from examiners that they are showing "excessive optimism" in how much they expect to get back.