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Looking for Valuant? You are in the right place!

Valuant is now Abrigo, giving you a single source to Manage Risk and Drive Growth

Make yourself at home – we hope you enjoy your new web experience.

Looking for DiCOM? You are in the right place!

DiCOM Software is now part of Abrigo, giving you a single source to Manage Risk and Drive Growth. Make yourself at home – we hope you enjoy your new web experience.

Any software is expensive – whether that is the upfront cost or the amount of resources it takes to implement. Maximizing engagement from the people affected by the change is the most cost-effective way to ensure you receive return on your investment. 

This decision guide outlines key steps for financial institutions to take to plan and implement new technology.

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A storm of events that have defined 2020 leaves many community financial institutions today in the position where balance sheets are awash with liquidity and competitive markets are squeezing rates on good quality loans to lower-than-comfortable levels. Using excess liquidity profitably in today’s low-rate environment can be challenging.

The following decision guide is a starting point in assessing your alternatives for putting excess liquidity to work.

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The lasting impacts of coronavirus and COVID-19 are still unknown; however, it is a safe assumption that it will not be limited to disruption in travel and the cancellation of trade association conferences. So, how can you determine what the impact will be on community financial institutions?

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The asset/liability management process at a financial institution should not be limited to one that “checks the box” of meeting regulatory requirements. Rather, institutions and Asset/Liability Management Committees (ALCOs) with a dynamic ALCO process are able to inform decisions related to strategy as well as risk management.

Download this whitepaper to learn:

  1. How the regulatory focus of the asset/liability management process has changed and what it means for financial institutions today.
  2. The critical elements that impact an institution’s asset/liability results and process.
  3. How a financial institution can address those critical elements.

Most credit unions aren’t required to implement the new current expected credit loss (CECL) standard until fiscal years that start after Dec. 15, 2022, so many institutions view the new accounting rule as less pressing than growth initiatives or other regulatory requirements.

Nevertheless, credit unions are heeding the advice of the NCUA, which has directed credit unions to take advance steps to ensure effective implementation of this major change in estimating losses. These steps begin with education and continue with the evaluation of methodologies. This action plan will walk through key components of team coordination, loan-level data, procedural changes, auditor/regulator expectations, and more.

Software for managing the loan portfolio can range from spreading and credit analysis through impairment analysis or sale of the loan. In most cases, the adoption of such software requires a change in process as well as an investment from the financial institution. In addition to total cost of ownership, what other considerations should an institution have for evaluating potential software and its vendor? In this guide, we present four, major areas to review for each vendor under consideration:

  1. Company Background
  2. Software Functionality
  3. Implementation & Support
  4. Information Security

The various regulatory agencies overseeing the U.S. banking system have made it clear that the loan review function is a critical component of effective loan portfolio management for banks and credit unions. How can your institution set up the loan review function to both satisfy regulatory pressure but also yield greater information for decision making for your institution?

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Resources on the FASB’s new current expected credit loss (CECL) model are many, but how can you focus on the most important action items? Download the Top 10 CECL Tips for a list of specific takeaways you and your institution can use to form your CECL transition plan or audit your existing project plan and team.

The FASB’s Accounting Standards Update, Topic 326 (CECL) released in June 2016 presents institutions with new guidance for measurement of an Allowance for Credit Losses (ACL, or ALLL). We regard the transition as fundamentally a project management problem. There exists a specific set of activities that, if performed correctly and thoughtfully, will produce a compliant estimate of credit losses over the life of a financial asset. The documentation of that set of activities is the purpose of this Practical CECL Transition Guide: a series of 8 whitepapers to better assist with your transition.

SECTIONS IN THIS GUIDE:

The Current Expected Credit Loss (CECL) accounting standard, ASU 2016-13 (Topic 326), outlines that the allowance for credit losses should be a valuation account deducted from the amortized cost basis of financial assets. Amortized cost basis includes, but is not limited to, adjustments for accrued interest, unamortized premium and discounts, and net deferred fees or costs. Entities’ valuation techniques should present the net amount expected to be collected on the financial asset.This document is intended to cover amortized cost basis application, specific guidance, and conceptual soundness under the context of ASU 2016-13 (Topic 326).

In this whitepaper: