Interpreting CECL Modeling Results

Presenters: Brandon Quinones and Danny Sharman

Financial institutions across the country are now actively preparing for the ALLL transition from the incurred loss to expected loss models. By now, most banks and credit unions are well aware of the methodology options under CECL. However, many are still having challenges interpreting results from their modeling exercises. Common questions that arise include:

  • What happens if I don’t have enough loan-level historical data?
  • What do I do if my results are zero?
  • Are there shortcuts for anticipating when certain approaches won’t work before building models to test?  

Join the Sageworks consulting team for an interactive walkthrough of these common modeling problems and questions. They will discuss how results can be interpreted and pivoted to other approaches that may provide more transparent outcomes.
Join to learn about:

  • The difference between a dream modeling scenario for a given methodology (what you see in most webinars) and realistic outputs (results that community based financial institutions might see today)
  • How to leverage results to drive future decision making around modeling exercises
  • Easy tells on what approaches you should consider for CECL or when defending certain approaches will be challenging

About the presenters
Brandon Quinones
Brandon Quinones, Sageworks
Brandon Quinones is a risk management consultant at Sageworks, where he primarily focuses on implementing cloud-based risk products and advising financial institutions on their allowance for loan and lease loss (ALLL) calculations, stress testing initiatives, and risk analytics. Prior to his time at Sageworks, Brandon brings years of experience as a strategic advisor to various Fortune 500 companies and specialized in business process optimization.  He was a senior consultant at Optimity Advisors, where he led large-scale projects in healthcare, private equity, and non-profit industries. He received a Bachelor’s of Science degree in Business Administration from the University of North Carolina at Chapel Hill.

Danny Sharman
Danny Sharman, Sageworks
Danny Sharman is a risk management consultant for Sageworks, where he works with financial institution clients primarily on their allowance for loan and lease loss provisions (ALLL). Previous to his current position, Danny developed an expertise in data implementation and quality processes while helping to lead the Sageworks Integration Team. Danny also served as product manager for credit risk products at Sageworks, leading the development and ongoing enhancement of spreading technology used by credit analysts across the country. He graduated from the University of Wisconsin-Madison with a bachelor’s degree in economics.

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