Category: 2018 Sessions

Data Gap Analysis and Current State Assessment

How will you get to where you are going if you don’t know where you are? CECL broadens the range of data that must be considered in the estimate of life-of-loan credit losses. Compliance with the CECL standard also includes leveraging the incurred loss allowance processes, procedures and policies. In this session, we will explore…

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Strategic Benefits of CECL Data Analytics

Creating a framework for analyzing relevant data across a varied customer base can improve your capacity to see and understand new, useful correlations between needs, risks and opportunities. In this workshop, we will delve into the opportunities and challenges with using data analytics in your development and use of CECL to assist not only with…

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CECL Considerations from a Model Risk Management Perspective

While credit and accounting are busy preparing for CECL implementation, don’t forget about risk management expectations. Supervisory guidelines for model risk management have now been adopted by the FDIC in addition to the Federal Reserve and OCC previously. When it comes time to have your model validated, set yourself up for a passing grade on…

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The Impact of CECL on Bank Financial Management . . . A Financial Crisis Retrospective

We are long over due in exploring the potential impact of CECL on bank financial management.  Beginning to think through how CECL will behave across the economic cycle should be a priority for us all. Join Larry Sorensen, CFO of Washington Trust Bank, as he shares a study conducted by his team at Washington Trust…

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Don’t You Forget About Me: The Impact of ASU 2016-13 on Debt Securities

Under ASU 2016-13, credit loss measurement differs depending on the debt security’s classification: held-to-maturity (HTM) or available-for-sale (AFS) based on management’s investment intentions. HTM debt securities, will fall under the CECL model of the ASU.   This may potentially require institutions to recognize at adoption and on an ongoing basis, credit losses on certain HTM debt…

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Quarter 2 of CECL: Will you be prepared to explain your credit loss provision?

This session will focus your attention on the information that may be needed after CECL has been adopted to explain subsequent credit loss provisions for the loan portfolio.  In doing so, we hope you will be better prepared to make the needed disclosures and for that purpose have in mind the information that may need…

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You Know What They Say About Assumptions

What assumptions do you make in your quarterly allowance estimation? Do you understand the variability of making those assumptions? Some assumptions you make come in the form of pooling segmentation, the model used, q-factors used, and loss estimates. In this workshop, we will cover different assumptions, show sensitivity analysis, and the importance of documentation to…

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What Was the FASB Thinking?

Larry Smith, Former FASB Board Member, will take the main stage in this session focused on the fundamental principles of the CECL model, including the alternatives permitted under the standard and the FASB’s considerations in creating those alternatives and the related disclosure requirements. He will offer his insider viewpoint as one who is intimately familiar…

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Confessions of a Data Analyst: Best and Worst Practices

As most institutions have begun to plan their transition to CECL, a number of them are discovering first-hand the additional emphasis on data. Reporting under CECL is going to require banks to encompass not just more data fields, but encompass more historical data to account for the life of a loan. Because of this significant…

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Segmentation Under CECL

Per the Standard, “CECL requires institutions to measure expected credit losses on financial assets carried at amortized cost on a collective or pool basis when similar risk characteristics exist.” Under CECL, pooling strategies currently used by financial institutions are potentially still feasible but may require tweaking. By utilizing current data to prepare proper understanding of…

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