CECL: Synthesizing Complexities to a Board

The current expected credit loss standard, or CECL, has been called one of the biggest changes ever to accounting for financial institutions, and every bank and credit union in the U.S. must assess CECL’s impact on its processes and on the allowance. With the change comes new roadblocks, one of which is explaining the complexities of CECL to a board in a straight-forward and clear manner.

When the conversation switches from an accounting employee’s desk to the boardroom, the focus should be less on data, segmentation, and methodologies and more on the predicted impact on financial statements. Employees who are responsible for building out CECL calculations may appear to be speaking a different language than the high-level board members who care less about minute details associated with the accounting for credit losses (ACL).

Join to learn:

  • What different members of the board care about
  • How to address early questions from board members on anticipated reserve levels under CECL
  • How to explain high-impact/complex CECL challenges in a simple manner
  • Why CECL may cause irregularities in both earnings and capital
  • Strategies to reduce potential negative impact on earnings

Meet Your Presenter

Paula S. King, CPA

Paula has held executive positions, including as Chief Financial Officer, in the banking industry for more than 25 years. As a former CFO, Paula has extensive experience in the design, preparation and reporting of the allowance for loan and lease losses, including ensuring compliance with regulatory and audit requirements, and creating allowance policies, procedures and processes. In addition, she has worked with loan operations and lending staffs and utilized the capabilities of a variety of core systems to ensure appropriate loan coding for optimal loan portfolio segmentation. Paula has been responsible for SEC and financial reporting, capital raising efforts and strategic planning, and has served as a Chief Risk and Compliance Officer. She has been responsible for overseeing daily operations for several banks and frequently served on internal credit committees. She co-founded a bank and served on its board of directors through its merger with another financial institution and has been a de novo bank consultant to boards and senior management teams.

Full Bio

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