CECL is coming. Is your CU Ready?

Presented by Randy Thompson

This webinar will provide a detailed discussion of the history of allowance calculation, specifics of what happened to cause this change, and specific steps credit unions must follow to comply with CECL. You will also learn how to mitigate the inherent risks as well as comply with the new regulatory changes.

Highlights

Currently, the calculation of ALLL is informed by the historical loss experience of pools of loans with similar risk profiles. However, the financial crisis of 2010 showed that this historical methodology was insufficient to provide for credit losses in a significant downturn.

For this reason, FASB is preparing to implement a new directive for ALLL calculation that will move from historical tracking to identification of probable future losses on all loans. This directive will be based on the Current Expected Credit Loss or CECL model.

Takeaways

• What is CECL, how does it works, what elements must be considered in order to achieve compliance with the new requirements?
  
• Data a credit union must be able to collect, monitor and statistically analyze in the CECL calculation.
  
• Components of policies and procedures that contribute to compliance with relevant supervisory guidance.
  
• How credit union leaders can assure that they have controls in place to consistently determine the ALLL in accordance with GAAP.
  
• How the CECL model affects basic management functions like budgeting, business development and loan growth.
  
  

Who Should Watch

CEO, CFO, CLO, Accounting, Supervisory Committee and Board members