Portfolio Risk & CECL CECL Accounting CECL Methodologies CECL Models

Integro Bank turns to Abrigo Advisory to advance its CECL model

Institution type

Bank

Product

CECL Advisory Services

Results

Best-in-class CECL model

About the financial institution

Recognized as the fastest growing bank in Arizona. Integro Bank has been uniquely focused on serving businesses in the Phoenix, Arizona, area since 2022. With its proprietary Integro360 SM data tool, the bank provides insights and analysis to clients that help their businesses grow and thrive. Integro Bank is the only bank in the nation with a CEO Club for founders, owners, and business leaders. It has been recognized by the U.S. Small Business Administration as a preferred lender with a proven track record of successfully processing and servicing SBA-guaranteed loans. Visit www.integro.bank for more details.

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“The audit committee said it was the most informed and valuable CECL presentation they’ve ever had in the history of the bank. Now, [the CECL model] is not a foreign language. It's understandable and it's repeatable."

Paul Thompson, chief financial officer, Integro Bank

Quickly deployed an advanced CECL model for U.S. GAAP audit; no gaps noted

With business owners comprising its shareholder base, Integro Bank is deeply embedded in the communities it serves. It offers tailored lending, deposit, and treasury products specifically for entrepreneurs, businesses, and non-profits in Arizona, Nevada, and California, and it accepts deposits nationwide. Integro Bank is known for its commitment to business owners and its strength in SBA lending. Chief Financial Officer Paul Allen Thompson was looking to quickly enhance Integro’s CECL model in connection with Integro’s annual U.S. GAAP audit. His focus was on usability, robustness, and data integrity, as well as ensuring a quality CECL model presentation to the bank's audit committee. Under a very short timeline to close year end, Thompson reached out to Abrigo for guidance and connected with Neekis Hammond, VP of Portfolio Risk Advisory Services. Hammond quickly stepped in. He guided the bank through reconfiguring the model while clearly explaining each component—making the process transparent, repeatable, and intuitive. The combination of Abrigo’s powerful software and expert advisory services enabled Integro Bank to advance its CECL model to best-in-class quality, improve its transparency, and maintain U.S. GAAP compliance despite the tight timeframe.

The solution for an audit-ready CECL model

With Abrigo Advisory's partnership, Integro Bank successfully presented CECL results to its audit committee, receiving praise for clarity and completeness. “The audit committee said it was the most informed and valuable CECL presentation they’ve ever had in the history of the bank,” said Thompson. "Now, [the CECL model] is not a foreign language. It's understandable, and it’s repeatable.” Gaining a better understanding of how their CECL model could work for them gave Integro Bank more confidence in its allowance calculation. The bank's relatively small accounting team is confident in the model’s current state and welcomes a continued partnership with Abrigo for future audit presentations and CECL model enhancements. The defensible and documented processes within the bank's CECL solution allow Thompson to look forward to clean exams and audits. While the reasonable inputs, valid outputs, and GAAP compliance of the software certainly helped, Thompson also credits the human element of his Abrigo partnership. “I'm a big believer in Adam Smith’s division of labor—you do what you're good at and let other people do what they're good at," Thompson said. "Abrigo has top-tier advisors. Abrigo makes a powerful and best-in-class positive impact. They build loyalty from people like me.”