CECL Allowance Calculator Helps Bankers Prepare for New Accounting Standard
In preparation for the implementation of the new Current Expected Credit Loss (CECL) standard, CliftonLarsonAllen LLP (CLA) and BankTrends have created an automated modeling tool for community bankers to quantify the financial statement impact of the new standard. Using 40 quarters of historical data, the CECL Allowance Calculator provides community banks with an easy-to-understand and fully customizable model to help navigate this new loan loss accounting standard applicable to all financial institutions, regardless of their size.
“CECL represents a very significant change to bank accounting and we are thrilled to provide a practical way for bankers to understand how the new standard will impact their institutions,” said David Heneke, a principal with CLA’s financial institutions team. “The Allowance Calculator turns a complex and data-intensive loan loss analysis into an easy-to-use dashboard report that gives community bankers a starting point to begin the CECL implementation process.”
To further aid community bankers, the Allowance Calculator includes consulting hours with banking professionals from CLA. “We didn’t want to just give bankers the software tools they need to estimate expected credit losses under CECL, and then leave them on their own. So we’re also providing practical guidance from CLA’s team of industry professionals to assist community bankers in proactively planning for a successful implementation,” explained BankTrends CEO Michael Stinson. “FASB’s new credit loss standard is a game-changer and we believe that a powerful software application plus professional guidance from industry professionals will give community bankers a leg up in preparing for this change.”
Early adoption of the new standard begins in 2019 but the CECL Allowance Calculator is available now. More information can be found at http://www.claconnect.com/industries/banks/cecl-estimation-calculator and https://www.bank-trends.com/CECL/.
Contact CLA at CECL@claconnect.com to get started.
About CLA’s Financial Institutions Practice
CLA provides strategic approaches to more than 1,850 financial institutions across the country. From accessing capital, identifying and mitigating risk, and adapting to new regulations, our experienced team guides clients through challenging times and helps position them for future success.
Designed for community bankers, BankTrends provides in-depth financial analysis using Call Report data. This innovative web-based software application gives bankers an easy-to-use analytical tool to identify market opportunities, make quantitatively-supported strategic decisions, and capitalize on organizational strengths and opportunities. BankTrends (www.bank-trends.com) is part of Informa Financial Intelligence, a subsidiary of Informa plc, a leading provider of critical decision-making solutions and custom services to financial institutions. For more information please visit financialintelligence.informa.com.
CLA exists to create opportunities for our clients, our people, and our communities through industry-focused wealth advisory, outsourcing, audit, tax, and consulting services. With more than 6,200 people, 120 U.S. locations and a global affiliation, we promise to know you and help you. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.