Blog

Information, Not Just Opinion

Five Things to Remember in Your Transition to CECL

By: MST Jun 15, 2018 8:24:17 AM

Our 2018 blogs have focused on providing information relevant to your transition to CECL. In looking back over the year’s blogs to date, we revisit five things to remember in your transition to CECL. 

1) There is typically no better place to start in preparing for CECL than your incurred loss methodology of today.

More

Topics: current expected credit loss, CECL, cecl education, cecl accounting

Confessions of a Data Analyst

By: Zach Langley Jun 6, 2018 9:36:33 AM

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.

More

Topics: Banking, Customer Service, community banks, ALLL, education, current expected credit loss, CECL, banks, Research, Big Data, Analytics, Advisory, cecl education, Excel, Solutions, consulting, methodologies

Joy Over Job Numbers Tempered by Trade War Concerns

By: mstbanking Jun 1, 2018 12:25:59 PM

Guest blog by Dr. Tom Cunningham, Economist and MST Advisory Services, Senior Advisor- Economics

Dateline: June 1, 2018 … This morning’s U.S. Employment Situation report revealed an uptick from previous months in the number of new jobs created. The figure of 223,000 new jobs was well above the 190,000 tally expected. 

More

Topics: economic indicators

CECL Disclosures: What's Changing?

By: Brandy Aycock May 28, 2018 8:39:27 AM

Again this year at the National CECL Conference, Dorsey Baskin, partner emeritus of Grant Thornton, explained how typical ALLL disclosures will change under CECL.

Because financial institutions will account for their loss allowances differently under CECL than under the current incurred loss model, the Financial Accounting Standards Board (FASB) had to modify allowance disclosure requirements.

More

Topics: CECL

Your CECL Committee: Who’s Invited?

By: Paula King May 18, 2018 9:46:46 AM

For financial institutions, the path to CECL compliance starts with establishing a CECL committee, whose job it is to guide the institution through the process of transition to estimating their allowance in compliance with the new Current Expected Credit Losses accounting standard. Broad committee representation is recommended because CECL will require input from more departments of the institution – that is, more people and positions will participate, at some level, in the CECL allowance process.

More

Topics: current expected credit loss, CECL, financial institution, banks, Analytics, cecl education, consulting

April Jobs Report: Mixed Signals

By: mstbanking May 8, 2018 9:23:00 AM

Guest blog by Dr. Tom Cunningham, Economist and MST Advisory Services, Senior Advisor- Economics

More

Topics: economic indicators

CECL Nears, Priorities Are Changing

By: mstbanking May 4, 2018 7:45:00 AM

As CECL nears, institutions must re-think their preparation processes.  

Time marches on. And CECL lies in wait. And as the former grows shorter and the latter nearer, priorities are changing for the financial institutions that will be required to adhere to the new allowance accounting standard.

More

Topics: Customer Service, CECL, cecl education, Solutions, Product Solutions, consulting, SEC Filers, methodologies

Looking into the Shadows for CECL Clarity: Shadow Loss Analysis

By: mstbanking Apr 28, 2018 11:23:32 AM

On April 17, Chris Emery, MST senior advisor – engineering and director of special projects, walked webinar attendees through a discussion of testing and experimenting with potential CECL methodologies and the Shadow Loss Analysis feature of the Loan Loss Analyzer allowance automation software that streamlines the process. Following are some of the highlights of Chris’s presentation.

More

Topics: current expected credit loss, CECL, cecl education, cecl accounting

It’s crunch time.

By: John Closs Apr 20, 2018 9:14:44 AM

SEC filers will start estimating their allowances according to CECL as of the first quarter of 2020, just a little more than a year and a half from now. Considering they will want to run parallel incurred loss and CECL methodologies for several quarters – a year is recommended – most lenders, including private companies, are knee-deep in preparations, setting up transition committees, gathering data, studying methodologies. 

More

Topics: education, Sales, current expected credit loss, CECL, model, Big Data, Analytics, cecl education, cecl accounting

CECL Is a Process Not an Event

By: Shane Williams Apr 13, 2018 9:51:49 AM

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.

More

Topics: CECL, model, Trends, Analytics, Advisory, cecl education

SOMETHING TO SAY?