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 [...]
President Eisenhower once said, "Neither a wise man nor a brave man lies down on the tracks of history to wait for the train of the future to run over him." January 1, 2022 will be here before we know it. Banks see "data requirements" and immediately think a software solution will solve everything. That [...]
It's been a big week in Washington with the State of the Union. But what about the State of Banking? One of the big issues in banking gets swept under the rug. That issue - Current Expected Credit Losses (CECL) - is a complete shift in how banks look at impaired loans. Under CECL, community [...]
As the government shutdown has gone on throughout January, it shines a light on a key fact. It's hard to make decisions without a good data set. As our first article of the week points out, the shutdown has meant that the Fed hasn't been able to get a full dashboard of data. Without clear [...]
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 [...]
First off, Happy New Year! We hope your bank realizes unparalleled success this year! The start of the new year brings more of the same – discussion and debate over interest rates and what the best next moves for the Fed are. Needless to say, there’s more uncertainty than there’s been in a very long [...]
Sure enough the hammer dropped on Wednesday. The Fed raised interest rates, as we suspected. For that reason, we’ve prepped some BLUFs from just before that announcement, each of which provide some insight to what it means for the economy. The spread between the 3-month Treasury and 10-year Treasury stands at less than 40 basis [...]
We hope you are having a great start to December and the holiday season. We aren’t going to go into full Chicken Little mode and say “the sky is falling!” Yet, if you dig for the facts in news reports – we’re likely heading for tough economic waters. Data continues to point toward “when” and [...]
