Confessions of a Data Analyst

The implementation of CECL has been called the biggest change in financial institution accounting . . . ever. Under current U.S. GAAP, financial institutions account for losses based on historical events or incurred losses. Beginning in the first quarter of 2020, financial institutions must look at the past as well as the future over the full lifetime of a loan. […]

CECL Is a Process Not an Event

CECL should be looked at as a process and not an event. We transition today toward CECL implementation on principles-based guidance. But through time and eventual practice, auditor opinion, and regulatory enforcement, the allowance will evolve to a more intense and sophisticated process, manipulating our assumptions, analyzing our numbers, understanding our trends as we continually refine our models and methods to enhance our knowledge and improve portfolio performance. […]

2018-10-24T11:23:14+00:00April 13th, 2018|Advisory, Analytics, CECL, CECL Education, Model|

How CECL Can Improve Your Bottom Line

Bankers and other financial professionals tend to approach the new CECL (current expected credit losses) accounting standard with an enthusiasm typically reserved for toothaches and telemarketer calls, and may well be skeptical of the potential of CECL to bolster their institutions’ bottom lines. […]

2018-10-30T15:08:51+00:00August 22nd, 2017|Advisory, CECL|

Revise Don’t Replace

When the Financial Accounting Standards Board (FASB) introduced the new accounting standard for credit losses, Current Expected Credit Loss, which we now know commonly by its acronym “CECL,” many were quick to suggest that financial institutions would need to replace their current incurred loss ALLL methodologies of today with much more sophisticated and/or data-intensive methodologies for CECL of tomorrow.  […]

2018-10-25T10:58:17+00:00August 18th, 2017|Advisory, CECL|

MST Adds Regan Camp to Direct Advisory Team of CECL Experts

We at MST welcome Regan Camp as Managing Director of MST Advisory Services, our consulting arm dedicated to supporting financial institutions in both complying with current U.S. GAAP standards, as well as preparing for the move to the new Current Expected Credit Loss (CECL) standard. […]

2018-10-23T12:47:07+00:00August 11th, 2017|Advisory|

“Wait and See” Could Prove a Costly Strategy

Proactive lenders believe addressing CECL means developing and executing a plan of preparation. For most institutions that means accessing the expertise and tools they’ll need, first to transition to CECL, then to estimate their allowances under CECL. […]

2018-10-25T14:01:57+00:00January 27th, 2017|Advisory, CECL|

Are You Looking for an Off-the-Shelf CECL-Compliant Solution?

CECL is rife with complexities, and as the implementation date for the new allowance accounting standard nears, it is understandable that lenders struggle with how to make the transition. As well, resources are limited; the closer the implementation dates, the more difficult it will be to find and engage transition expertise. […]

2018-10-25T15:47:17+00:00December 16th, 2016|Advisory, CECL|