A practical CECL transition: Preparing with only one year left

As financial institutions plan for their respective deadlines to implement the current expected credit loss (CECL) model, some are deliberating on what they should do in their final year to get ready. ASU 2016-13 is effective for public entities for fiscal years beginning after Dec. 15, 2019.

Interpreting CECL Modeling Results

Financial institutions across the country are now actively preparing for the ALLL transition from the incurred loss to expected loss models. By now, most banks and credit unions are well aware of the methodology options under CECL. However, many are still having challenges interpreting results from their modeling exercises.

Subjective CECL Qualitative Adjustments and Forecasts Under the CECL Model

As institutions approach the transition from the incurred loss model to the current expected credit loss model for estimating the ALLL, there are many questions around the subjective aspects of the new standard. This session will look at the relationship between qualitative adjustments and “reasonable and supportable” forecasts under CECL estimates and key considerations for how institutions will apply them.

CECL webinar panel: Answers to your top questions

The transition to the FASB’s CECL accounting standard is well underway for many financial institutions. In this panel discussion, hear from a banker, three auditors and two consultants from Abrigo, MST, Grant Thornton, BKD, Camden National Bank and PWC who are helping thousands of institutions through this critical change.

Best Practices for Running and Validating a CECL Model

In the past, implementing a change like CECL would be a matter of mapping the right data and “turning on a switch.” This is no longer the case. The CECL timeline and transition process spans over several years and involves numerous functional departments at both banks and credit unions. This joint-webinar between Abrigo and Smarter Risk Management goes over how to build a CECL model and have it successfully validated.

CECL: Hidden Complexities for Credit Unions

In this 45 minute webinar, Jared Mills of the Abrigo Advisory Group will discuss the hidden complexities when simple, expedient approaches for measurement under the CECL accounting standard are applied to credit union loan portfolios. Having worked at a credit union before as an Assistant Director of Accounting, he will discuss the impact, control and structural complexities that he knows are relevant to the industry.

CECL: The Hidden Complexities to Simple Approaches For Community Institutions

In this one-hour webinar, Garver Moore of the Abrigo Advisory Group will discuss the hidden complexities when simple, expedient approaches for measurement under the CECL accounting standard are applied to portfolios from $10MM to $10B. Combining research with a client case study.

Streamlining the New Fair Value Disclosure Requirement

A new Financial Accounting Standards Board (FASB) disclosure requirement makes several material changes to the U.S. generally accepted accounting principles (GAAP). Among the changes are new requirements for determining the fair value disclosure of financial institutions’ loan portfolios.

(ASU) 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, went into effect for financial statements beginning after 12/31/17. The update requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes in accordance with Topic 820.

Navigating Loan Segmentation under CECL

Proper loan pool segmentation, already a critical issue in the incurred-loss method of calculating the allowance for loan and leases losses (ALLL), is expected to have even more importance under the current expected credit loss model (CECL). Various methodologies for forecasting expected credit losses will require specific kinds of segmentation in order to execute them.

Join Abrigo Executive Risk Management Consultant Rob Ashbaugh as he discusses how to revisit loan pools for ALLL calculations under CECL.

Webinar: CECL for Community Banks, The Practical Path

In this webinar, Abrigo Executive Risk Management Consultant Tim McPeak discussed how as the transition to CECL moves closer, many smaller financial institutions have started to grapple with how to apply the new standard to their ALLL process in a practical way. He followed up on some of the questions and methods presented during the February regulatory webinar and focused on the key elements of the standard financial institutions need to consider as they plan their path forward. Specific topics included portfolio segmentation, available loss rate methods, qualitative factors, and forecasts.

Webinar: Understanding the ALLL Today, before CECL

In this webinar, which first aired on Sept. 29, 2016, Brandon Russell, an ALLL specialist from Abrigo, reviewed trends in managing the allowance for loan and lease losses in today's environment. The session explained how many financial institutions have little loss history from which to build accurate and supportable historical loss rates, which means many institutions turn to qualitative factor adjustments to bolster loss rates and the ALLL levels.

Webinar: Forward-Looking ALLL

Banks and credit unions may be asked to create future-looking methodologies for the Allowance for Loan and Lease Losses (ALLL) in light of the newly released CECL mode. These methodologies will require adjustments for reasonable and supportable forecasts, but if the institution doesn't have a history of quantitative modelling or staff that has adequate modeling experience, that can be a challenge for community banks and credit unions.