Presenters: Regan Camp & Rob Newberry, Abrigo
This two-part program will be presented live on: May 3 & 4, 8:30 a.m. – 12:30 p.m. Central Time
Optional one on one consultation: 15-minute time slots available on May 5
Recording available through: August 4, 2022
Don’t miss this last opportunity from GSB to get up to speed on CECL, with hands-on applied learning and optional 15-minute consultations with the instructors at no additional cost!
Financial institutions complying with the Current Expected Credit Loss standard, or CECL, in 2023 have to manage a myriad of new data, modeling, and forecasting considerations. With new requirements comes new expertise and time constraints. To assist community financial institutions in navigating the transition, Abrigo is hosting a one-day workshop filled with over two hours of breakout sessions and five hours of educational content that describes the new standard, recommends modeling best practices, identifies key players at the financial institution, examines forecasting, and shares case studies from those who have done it before, including the SEC-filing institutions who implemented last year.
This workshop will be led by Abrigo personnel of former bankers and industry experts who have worked with hundreds of institutions already on conducting concise, credible, and efficient CECL calculations.
Attendees should have their most current Allowance package and whatever they have put together so far for their CECL methodology implementation at their disposal. Open office hours will be provided by Regan and Rob the morning of May 5th to help answer any outstanding questions generated from the material covered in the workshop.
Day 1 – May 3
Session 1: An Introduction to the New CECL Standard, 8:30 – 10:00
In this first session, we will establish a foundational understanding of the new Current Expected Credit Loss (CECL) accounting standard. This will include reviewing the history and evolution of the allowance, discussing the reasoning behind the move to CECL, and examining what’s in scope, measuring losses, loss recognition, timelines, and more.
Session 2: CECL Modeling – Estimating Lifetime Expected Losses, 10:15 – 11:30
In this second session, we will introduce and walk-through detailed examples of a variety of the more widely considered and CECL-compliant models/methodologies, as well as discuss the pros, cons and applicability of each approach to estimating lifetime expected losses.
Breakout Session #1 – 11:30-12:00 Break up attendees into groups. 3 – 4 banks in a group
Discuss within your group what your institution is currently planning to implement for CECL and the biggest struggles or questions you have so far in implementing a CECL methodology.
Wrap up of Breakout Session #1 – 12:00-12:30 p.m.
Day 2 – May 4
Session 3: Preparing for CECL – Who, What, When?, 8:30 – 9:30
In this third session, we will discuss who should be involved, what they should be doing, and when they should begin preparing for the formal transition to CECL adoption.
Session 4: Examining Reasonable and Supportable Forecasts, 9:30 – 10:15
In this fourth session, we will examine the new requirement under CECL of developing and incorporating reasonable and supportable forecasts in our allowance calculations. How is this different from current US GAAP requirements, and what might this look like in practice?
Breakout Session #2: Applied Learning, 10:30 – 11:00
In this breakout session, we will leverage your current situation to apply your learning and further solidify your understanding of previously discussed key concepts. Discuss within your group if this has changed your thoughts on how you plan on implementing CECL at your institution.
Wrap up of Breakout Session #2 – 11:00-11:30
Session 5: Lessons Learned from SEC Filers, 11:30 – 12:30
In this sixth and final session, we will review some of the apparent trends and best practices observed in those SEC filers that have already formally adopted the new CECL standard and discuss how we might leverage this information to better prepare our own institutions for this shift.
Day 3 (Optional)
Open Office Hours: Schedule dedicated 15-minute time slot with Regan or Rob, 8:30 -11:30
Regan and Rob will be available to answer specific questions that you would like to discuss related to the conversion from the incurred method you are currently using over to a CECL methodology.
Who Should Attend:
CEOs, CFOs, ALCO members, controllers, chief risk officer, chief retail, funding officers