Serving Small to Mid-Size Community Banks for over Thirty Years

CECL Overview

Primary Objective of CECL:

To have a sufficiently precise level of reserves so as not to need replacement provisions at time of loss.

"Experience Based" Reporting

All Analyses & Assessments
are Based Upon "Historically Verifiable Experience"

Experience Based rather than Anecdotally Based
To be based upon:
  • Average Annual Charge-Off Factor
         for each individual Risk Pool
  • Assessing the Current
         Principal at Risk for each
         individual Loan / Risk Element
  • Remaining Effective Life
         of each Loan in Years
  • Risk Profile for each Individual
         Loan / Risk Element
  • Originations of Loans
  • Current & Past Loan Volumes
  • Charge-Offs
  • Recoveries of Charge-Offs

Forward Looking

  • Assessing Future Risk of Loss based upon Historical Evidence
  • Computed anew each Reporting Period (Monthly) 
  • Computational Methodology is Consistent throughout the Analyses

Major Elements of the Reserve Computation & Reporting

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