Does anyone know and can they point me in the direction of validation: In Georgia, we are required to secure Public Funds within 10 days at 110% value. My question is: Is "Days" defined as Calendar days, or Business days and how do we factor in Holidays?
Each year MST, now Abrigo, has been implementing an allowance survey. This year we’re asking about your progress in the CECL transition, how you are preparing and what you are determining in terms of how CECL will impact your institution. As always, we’ll compile answers and share the results so you can compare what you are doing with your peers. We encourage you to participate. As a token of our appreciation, you will have the chance to win a $300 Yeti cooler or a Bluetooth speaker.
We wish you a productive and profitable 2019!
Take the survey: https://www.surveymonkey.com/r/J236LTW
CECL is in the news a LOT now that we're less than a year out from the transition. Robert Ashbaugh and Chris Emery are making sure your financial institution understands all of the recent changes and the ways that those changes and proposals might affect your institution's CECL implementation. Tune in for our free webinar in two weeks -- get registered here: http://bit.ly/2GrF1mr
I am getting ready to develop a centralized order management system across our bank. We currently use an online office supply company but the internal process is broken. Has anyone created a process for this ?
For those who are currently building out their CECL models, did your results not match your expectations? Are you confused on what to do next?
Join us on Monday, December 10th from 1:30-2:30 p.m. ET. for an interactive walkthrough of common modeling problems and questions. Common questions 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?
Sageworks risk management consultants Brandon Quinones and Danny Sharman will answer these questions and discuss how results can be interpreted and pivoted to other approaches that may provide more transparent outcomes.
Register now: https://web.sageworks.com/interpreting-cecl-results/
In case you missed our webinar last week, “Building an Information Security Risk Assessment,” a copy of the recording is now available online. Listen to Systems Partner Mike Morris and Senior Manager Jim Rumph's insight into why a proper risk assessment is so critical to your overall risk management efforts. http://www.pkm.com/resource/building-an-information-security-risk-assessment/
Time: 10/10 2:00-3:30 p.m. ET
Worth one CPE credit
The transition to the FASB’s CECL accounting standard is well underway for many financial institutions. In this panel discussion, hear from a banker, three auditors and two consultants from Sageworks, MST, Grant Thornton, BKD, Camden National Bank and PWC who are helping thousands of institutions through this critical change.
They’ll discuss how CECL has influenced everything — implementation, validation, organizational changes and more, while addressing your top concerns and questions.
Register now: http://bit.ly/2oN421G
As CECL is approaching, financial institutions are evaluating vendors to help them automate their allowance processes. From methodology selection, economic forecasting and proper loan pool segmentation, manual calculations will be more difficult to implement under CECL as credit losses need to be predicted over the life of the loan.
Join to learn:
- Best practices that every institution can apply during their CECL preparation process
- The importance of choosing the right methodology from data on-hand
- How to optimize loan pool segmentation and economic forecasting
- Ways the Sageworks ALLL software solution creates a seamless CECL transition
Register now: http://bit.ly/2xJk29M
CECL presents institutions with new guidance for measurement of the ALLL. While initially daunting, the transition exercise is, fundamentally, a project management problem; there exists a specific set of activities that, if performed correctly and thoughtfully, will reduce a compliant and defensible estimate of credit losses over the life of a financial asset or pool of financial assets.
The documentation of that set of activities is the purpose of this Practical CECL™ Transition Guide: a series of 9 whitepapers to better assist with your transition.
Download now: http://bit.ly/2xQ1XGq
Complimentary Group Demo: September 20th, 2:00 – 3:00 p.m. ET
In August, Sageworks launched one of their newest products, “Insights”, to help leaders leverage loan portfolio data in new and meaningful ways. Lack of and limited access to bank-wide data, accompanied by time-consuming analysis, can hurt leadership’s ability to make well-informed, timely decisions. In this complimentary group demonstration, we aim to show how our newest offering can help bridge that gap.
Join to learn:
- How to perform simulations of the loan portfolio in order to inform financial statement impact for budgeting purposes
- How Insights can help as part of Dodd Frank Act Stress Test preparation (or stress testing under CECL, more broadly)
- How to set up scenarios to view how the portfolio would respond with various assumptions
- Using the Acquisition Analyzer as part of potential acquisition due diligence
- How Segment Insights can be leveraged for board & concentration reporting
- Potential Roadmap for continued development
The transition to the FASB’s CECL accounting standard is well underway for many financial institutions. In this panel discussion, hear from a banker, three auditors and two consultants from Sageworks, MST, Grant Thornton, BKD and PWC who are helping thousands of institutions through this critical change.
They’ll discuss how CECL has influenced everything — implementation, validation, organizational changes and more while addressing your top concerns and questions.
Register now: https://web.sageworks.com/cecl-webinar-panel/
Anyone have a living will for your financial institution you might be willing to share? We are a $185M financial institution.
With the abundance of resources available to financial institutions in their transition to the current expected credit loss (CECL) model, it can be difficult to find easily digestible advice. Leverage this one-page guide on ten practical CECL & ALLL tips to simplify the transition.
Learn how the longest-standing bank in Miami-Dade County, Florida benefits from using an automated solution for their ALLL calculations.
Download directly or access here: https://web.sageworks.com/how-community-banks-can-save-time-on-the-alll/
While institutions have time before the CECL standard is effective, is important that institutions not wait to prepare. This CECL implementation prep guide covers basic tips for forming an implementation committee, crafting a project plan and introduces example illustrated timelines for implementation.
Looking for some last-minute CECL learning before the holiday?
Adoption of the standard will have a significant operational and financial statement impact on institutions with acquired loan portfolios. A solid understanding of the accounting changes will result in an improvement to current treatment, transition planning, vendor/model selection and go-forward day 1 decisions.
Watch this on-demand webinar to learn more: https://www.sageworks.com/banking/resources/CECL-accounting-acquired-loans/
Chinese Zodiac - One of my favorite memories growing up as a child was going to a Chinese restaurant and reading about my Chinese Zodiac animal sign. My sign is the Rabbit, the fourth of all Zodiac animals. Simply based on what year I was born, I am able to tell whom I will be able to get along with and whom I should avoid. The Zodiac is only one of China’s fortune prediction methods.
What is easy to understand about the Zodiac is that it groups all peoples into twelve basic groups. The Zodiac has been around for many centuries and repeats itself every twelve years. Simply based on what year you and I were born, we should be able to know a lot about you before we even meet.
Vintage/Static Pool Approach to CECL – CECL is an approach to calculating the Current Expected Credit Loss of a loan based on certain characteristics. One of the most common characteristics used for the analysis is the year that the loan was originated. Does that sound like the Zodiac? The basic premise is that the total loss experience over the life of the loan pool with the specific characteristic (in Vintage/Static Pool it is year of origination) will be the expected loss for each and every loan that is remaining in the pool.
Chromosomes - A chromosome is a DNA molecule with part or all of the genetic material of an organism. In humans, each cell normally contains 23 pairs of chromosomes. Since we get 23 chromosomes from parent 1 and the 23 corresponding chromosomes from parent 2, the combinations and outcomes are limitless. However, when we do see certain groupings of these chromosomes in DNA, we can predict with deadly accuracy certain types of diseases and cancers.
Regression Analysis Approach to CECL - Regression Analysis is a set of statistical processes for estimating the relationships among variables. The main purpose of regression analysis is to return a single value based a number factors. In CECL’s case, we are calculate a loan loss value for a loan based on a number of factors associated with the loan such as Collateral Value, FICO Score, Interest Rate, etc.
Download the PDF for the full article.