With the implementation of ASU 2016-13 and Accounting Standard Codification Topic No. 326 rapidly approaching for all financial institution, this webinar will assist Call Report preparers, reviewers or auditors understand the various schedules and line items impacted by CECL reporting requirements.
Participants will walk through the changes in terminology that become effective upon adoption of the Current and Expected Credit Losses (CECL) methodology for recording the estimated and expected losses on not only the loan portfolio, but any asset carried at amortized cost, to include debt securities held as available-for-sale and held-to-maturity.
Participants will understand:
- The transition from Allowance for Loan and Lease Losses (ALLL) to the Allowance for Credit Losses (ACL).
- How to report assets that were considered purchase credit impaired (PCI) that become purchase credit deteriorated (PCD) upon adoption of CECL.
- How to elect a phase-in of the negative impact to equity capital resulting from the day-one implementation entry.
- How to determine your CECL transitional amount and your ACL transitional amount.
- What goes into the calculation of the Adjusted ACL (AACL) that is required for capital ratio calculations.
- Schedule RI provisions for credit losses and provisions for unfunded commitments
- Schedule RI-A and the impact of your day-one CECL implementation entry.
- Schedule RI-E reporting the adjustments required in the ACL and Retained Earnings resulting from the day-one entry and beyond.
- Schedule RI-B Part II and the roll-forward of the ACL on loans, HTM and AFS debt securities and other assets determined to be PCD.
- Schedule RI-C Part II reporting the ACL by loan segment and HTM securities.
- Schedule RC and how to report loan balances and the ACL on loans, securities and other assets.
- Schedule RC-B HTM debt securities with an associated ACL.
- Schedule RC-C reporting loan balances.
- Schedule RC-G and reporting the ACL on unfunded commitments.
- Schedule RC-K and reporting averages and total assets.
- Schedule RC-N reporting loan balances.
- Schedule RC-O for large institutions that elect a phase-in of the negative capital impacts.
- Schedule RC-R Part I and Part II impacts on reporting capital adjustments and determining the ACL includable as Tier 2 capital.
- The FFIEC 041and 051 forms will be the discussion focus in the presentation. Participants are encouraged to bring a copy of a recent Call Report form for reference as we walk through the schedules.
Who Should Attend?
This review of selected Call Report schedules and reporting items impacted by CECL adoption will benefit anyone responsible for preparing, reviewing or auditing the Call Report to include personnel in accounting, lending and credit operations, and financial executives. This training will supplement annual comprehensive Call Report training recommended by bank regulators.