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ABA Endorses MST for CECL Software Solution

September 18, 2018
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From the ABA . . .

ABA Endorses MST, Sageworks for CECL Software Solutions

WASHINGTON — The American Bankers Association today announced its endorsement of two software solutions to help banks meet the upcoming deadline for Current Expected Credit Loss (CECL) implementation. Sageworks ALLL and MST Loan Loss Analyzer (LLA) are software solutions that provide modeling and data management for CECL accounting.

CECL represents the biggest accounting change in banking history. The new standard requires banks to record credit losses at loan origination based on a “life of loan loss” expectation. Under CECL, banks will need new processes for collecting and storing loan level data, forecasting future economic conditions and incorporating those forecasts into the CECL estimate.

ABA requested proposals from more than 30 vendors and after an extensive due diligence process, Sageworks ALLL and MST LLA were identified as best-in-class solutions that meet the operational needs of financial institutions as they prepare for CECL compliance deadlines.

Sageworks ALLL helps bankers streamline the reserve calculation process under current GAAP, as well as future GAAP with current expected credit losses.

The MST LLA is a reliable, repeatable process for determining and documenting a financial institution’s allowance under the current incurred loss standard and CECL.

“Both the Sageworks and MST systems will excel in helping ABA members analyze credit risk under CECL,” said Mike Gullette, senior vice president of accounting and tax at ABA. “More importantly, they are built to provide the flexibility banks will need in reacting to evolving expectations from regulators and auditors in the future.  Their proven history of customer service also promises members that their systems will grow along with banker needs.”

“We are honored to have both of our allowance calculation products endorsed by ABA for compliance under CECL. Our allowance solutions have been in the market for almost 10 years, so we understand the criticality of the ALLL calculation and technology that can help banks comply with confidence,” said Wayne Roberts, CEO at Banker’s Toolbox, which now owns Sageworks and MST.

“I’ve met with a lot of community banks that are trying to get their hands around this standard and the data they’ll need. We’ve worked with more than 850 institutions to prepare for this accounting transition, and we look forward to expanding that service to other ABA banks that need advisory or technology help,” said Jay Blandford, president at Banker’s Toolbox, Sageworks and MST.

Both Sageworks ALLL and MST LLA offer efficient and flexible methodologies that will help banks not only meet the regulatory requirements associated with CECL, but also the practical challenges in meeting the demanding quarterly reporting deadlines.  They feature robust models with an ability to run various scenario analyses, as well as data warehouse options to help banks collect the information they need to produce forecasts and inform their boards of the credit risk they face. Other benefits to these solutions include profitability analysis and portfolio optimization.

ABA will host a webinar featuring Sageworks and MST on Oct. 18 at 2 pm ET for members to learn more about both endorsed CECL solutions.

As part of the endorsement, ABA members will receive advantaged pricing. For more information on either solution, visit or contact [email protected] and [email protected].

Setup a Demo today and see the Loan Loss Analyzer in action. 

About American Bankers Association

The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend nearly $10 trillion in loans. Learn more at

About MST
Founded in 1999, MST is a pioneer of allowance software solutions for financial institutions. Working with banks across the U.S., MST helps to determine and document their allowance under current GAAP and in their transition to and implementation of the more complex calculations required by the new CECL accounting standard. In 2018, Banker’s Toolbox acquired MST.

About Sageworks
Founded in 1998, Sageworks is a financial information company that provides lending, credit risk and portfolio risk solutions to financial institutions and provides financial analysis and valuation applications to accounting firms and private companies. Sageworks has created the largest real-time database of private-company financial information in the U.S., analyzed over 11.5 million loans and aggregated the corresponding loan data. In 2018, Banker’s Toolbox acquired Sageworks.

About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

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