The Policy Statement on Allowance for Loan and Lease Losses Methodologies and Documentation for Banks and Savings Institutions dated July 2, 2001, remains the preeminent guide to ALLL documentation. Documenting the ALLL calculation is a crucial component to communicating management’s judgments and conclusions regarding the accuracy of the required ALLL reserve. Building a strong narrative document as a companion to the current ALLL determination will provide the reader (director, auditor, and examiner) with confidence in management’s ALLL calculation and provide a strong starting point as the industry transitions into CECL.
This comprehensive presentation will address documenting management judgments and assumptions in determining the ALLL and provide insight into components of ASC 310 and ASC 450. Related topics will include documenting management judgment pertaining to valuation timing for impaired credits, defining homogenous pools based on credit risk, and describing qualitative factors, including factor adjustments.
- Describe the importance of providing a comprehensive narrative document in conjunction with the ALLL calculation
- Determine pertinent factors and source documents to include in the ALLL narrative
- Provide insight regarding the 2001 Policy Statement on Allowance for Loan and Lease Losses Methodologies requirements
- Understand the importance of a descriptive narrative pertaining to management judgments regarding CECL preparation
- Confidently present the outcome of the ALLL calculation to the institution’s board, auditors, and examiners
- Employee training log
- Interactive quiz
WHO SHOULD ATTEND?
This informative session is best suited for those involved with the ALLL calculation and presentation to the board. Credit personnel not directly involved with the ALLL calculation but who contribute to various components will also benefit, including collection and workout management, valuation management, and portfolio management.
ABOUT THE PRESENTER – Aaron Lewis, Young & Associates, Inc.
Aaron Lewis is a senior consultant at Young & Associates, Inc. With over 15 years in the banking industry, his expertise is now dedicated to the lending division of Young & Associates where he assists financial institutions with loan, ALLL, policy, and credit-process and compliance reviews. He also conducts seminars on credit risk and compliance.
Prior to joining Young & Associates, Aaron was the Vice President Credit Administrator of a community financial institution in southeast Michigan and managed all facets of the lending function, including originations, underwriting, ALLL analysis, servicing, and secondary market compliance. He holds a Bachelor’s in finance from Michigan State University and graduated from the Graduate School of Banking, University of Wisconsin.
- Live Webinar - $245
- Recorded Webinar and Digital Download - $245 plus tax
- Live Webinar, Recorded Webinar and Digital Download - $320 plus tax