If you've taken a look at the landscape, there's a variety of CECL solution options. Some of the solutions seem mundane and straightforward, only to get into rocky ground later. That rocky ground usually comes in the form of unforeseen costs. Let's take a look at three solutions, two of which you’ve probably been pitched. [...]
According to research released last month by the highly respected Fitch Ratings, loan loss reserves for the U.S. banking industry are expected to increase between $50 to $100 billion under CECL. That's an increase of 38 to 77% above current reserve levels. Fitch's report on CECL went on to outline that as a result [...]
Last week we discussed setting goals that could be influenced by actionable items. Setting goals is important, but if you want them to be taken seriously, create a visible scoreboard for your team. Drive by a playground with a basketball goal, and you might see kids shooting hoops without a care. Drop in on that [...]
Just like many businesses and organizations do, we’ve just came out of strategic planning sessions for our business year in December. One of the interesting things we came across was the difference between goal measurements. How often have you seen this? We want the bank to earn $________ in 2019. That’s great, and you should [...]
Healthy banking conditions exist right now — low unemployment, a good economy, and customers looking to make capital investment moves in their lives. At some point, the risks on the horizon will get closer. A flattening yield curve and rising short-term interest rates point to exactly that. The trough of the last recession was June [...]
The day is coming - December 31, 2021. That is the deadline for Current Expected Credit Loss (CECL) to be implemented for privately held community banks. As we broach this topic with bankers, there seems to be two options that are available. At the end of this paper, we’ll provide a third option that [...]
Let’s face it. The Fed raised rates in June 2018, and it may not be the last time this year. The more banks we visit, the more we realize that banks have been very relaxed in their approach to Interest Rate Risk (IRR) assumptions. They’ve been equally or even more relaxed to having an [...]
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