CECL: It’s Getting WARM in Here

As hope for regulatory relief and legislative intervention has faded, financial institutions are set to adopt FASB Accounting Standards Codification Topic 326 (ASC 326) – Financial Instruments – Credit Losses (aka CECL) on January 1, 2023. While approximately 150 banks adopted CECL on January 1, 2020, there are still almost 5,000 community banks that are [...]

2021-08-09T17:15:23-05:00August 3rd, 2021|CECL, FINANCIAL INSTITUTIONS|

COVID-19: Current Expected Credit Losses (CECL) Revisited … Again

In December of 2019, one might have said it would take a natural disaster for CECL to be delayed for those required to comply in the first quarter of 2020. Fast forward to March 13, and we have the equivalent as the President declared a national emergency related to the coronavirus/COVID-19 outbreak. In response, the [...]

2020-04-06T21:57:45-05:00April 6th, 2020|CECL, COVID-19, FINANCIAL INSTITUTIONS|

COVID-19: Loan Modification Considerations for Financial Institutions and Their Customers

The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Consumer Financial Protection Bureau (CFPB) and Conference of State Bank Supervisors (from now on referred to as the Agencies) have issued the Interagency Statement on Loan Modifications [...]

2020-03-24T12:03:03-05:00March 23rd, 2020|CECL, COVID-19, FINANCIAL INSTITUTIONS|

Much Anticipated Draft Regulatory Guidance on Current Expected Credit Losses (CECL)

On October 17, 2019, the Federal Financial Institutions Examination Council (FFIEC) issued the much-anticipated proposed draft Interagency Policy Statement on Allowance for Credit Losses (ACLs). The agencies issued the draft in response to changes in the accounting for credit losses under the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 326 (most commonly [...]

2020-02-24T10:47:00-06:00October 24th, 2019|CECL, FINANCIAL INSTITUTIONS|

CECL: An Overview

The current expected credit losses (CECL) journey began with the issuance of an exposure draft in 2010, continued with the issuance of a supplementary document in 2011, and an additional exposure draft in 2012. After much debate and over 3,300 comment letters, the Financial Accounting Standards Board (FASB) released the much-anticipated Accounting Standards Update (ASU) [...]

2019-06-07T12:29:26-05:00June 6th, 2019|CECL, FINANCIAL INSTITUTIONS|