Explore how making a few simplifying assumptions, using national forecasting data, and employing a remaining life method can produce a meaningful, pool-level loss estimate, even when the institution's historical data contains few (or no) losses.
The Community track will be most appropriate for institutions who forgo SEC filings or public investor scrutiny of the allowance. Additionally, since the Community track will leverage national instead of individualized forecasts and assumptions, this track will be best for institutions whose external audit firms accept these generic inputs. If the institution does plan to tweak their approach or leverage other models, the Community track can provide a rapid, meaningful starting point to limit risk in implementing the CECL standard.
Attendees will work collaboratively and in a hands-on technology environment to produce an Allowance for Credit Losses. The track will be relevant for institutions regardless of whether or not the institution subscribes to Sageworks ALLL. Rather, attendees will strengthen plans for the transition.
- A streamlined approach to CECL that will provide institutions with a compliant albeit less sophisticated calculation
- Appropriate for institutions desiring a CECL transition process that’s less dependent on custom calculations or assumptions
- Appropriate for institutions who do not anticipate making public, investor representations regarding their allowance in the foreseeable future, and who do not expect scrutiny around basis adjustments such as accrued interest receivable
- Product used for case study illustrations: Sageworks ALLL
