Blog

Information, Not Just Opinion

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

March Jobs: Out Like a Lamb

By: mstbanking Apr 6, 2018 11:52:08 AM

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

Consistent with the old maxim, “In like a lion, out like a lamb,” the March Bureau of Labor Statistics jobs report tempered February’s big gains with a net job creation figure of just 103,000, well below the expected 193,000. Given February’s numbers, some giveback was expected, though not so substantial. 

More

Topics: economic indicators, economic forecasting

Banker's Toolbox Announces Acquisition of Loan Loss Reserve Powerhouse, MainStreet Technologies

By: mstbanking Apr 5, 2018 12:00:00 PM

Banker’s Toolbox adds to its growing compliance solution set

AUSTIN, TX – April 5, 2016 – Banker’s Toolbox, Inc., leaders in compliance solutions for America’s community financial institutions, announced today the acquisition of Georgia-based MainStreet Technologies (MST). MST is a leader and industry trendsetter in the loan risk management space, with their flagship Loan Loss Analyzer (LLA) software platform and highly regarded Advisory Services.

More

Topics: Banking

Can you continue to use the discounted cash flow method to measure credit loss on TDRs?

By: mstbanking Mar 30, 2018 11:31:20 AM

Continuing our series of questions asked of MST Senior Advisors Paula S. King, Garry Rank, and Dorsey Baskin during the March 13, 2018 webinar “Key Issues and Trends in CECL Transition: A Panel Q & A Webinar”, the panel of allowance experts offers insights into some of the significant changes in disclosures under CECL.

More

Topics: CECL, cecl education, cecl accounting

What Was the FASB Thinking? Keynote Session of the National CECL Conference

By: mstbanking Mar 26, 2018 11:43:38 AM

The MST 2018 National CECL Conference will feature a session from a former member of the Financial Accounting Standards Board (FASB), Larry Smith. Currently a senior managing director with FTI Consulting, Mr. Smith served two five-year terms with the FASB. During his tenure as a board member, the FASB undertook major projects and promulgated new standards in the areas of revenue recognition, leases, credit losses, derivatives and consolidations, among others.

More

Topics: cecl education

What are the significant changes in disclosures under CECL?

By: mstbanking Mar 23, 2018 11:49:26 AM

Continuing our series of questions asked of MST Senior Advisors Paula S. King, Garry Rank, and Dorsey Baskin during the March 13, 2018 webinar “Key Issues and Trends in CECL Transition: A Panel Q & A Webinar”, the panel of allowance experts offers insights into some of the significant changes in disclosures under CECL.

More

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

How do adjustment factors (so-called Q factors) change under CECL?

By: mstbanking Mar 16, 2018 12:49:41 PM

On March 13, 2018, some of MST’s advisory group teamed up to offer their thoughts in a webinar entitled, “Key Issues and Trends in CECL Transition: A Panel Q & A Webinar.” In this Q & A style webinar, MST Senior Advisors Paula S. King, Garry Rank, and Dorsey Baskin answered questions moderated by Regan Camp. This panel of allowance experts from MST Advisory Services answered questions and shared the key issues and trends in preparation and transition to CECL for financial institutions from their hands-on experience.

More

Topics: CECL, q factors, cecl education

CECL and the Board: New Standards Bring New Responsibilities

By: Garry Rank Mar 12, 2018 1:23:44 PM

One of the MST series of articles on the impact of CECL on institution's top management

A core responsibility of a financial institution’s board, often in conjunction with its audit committee, is oversight of financial reporting. Given recent and ongoing revisions to major financial reporting standards, the board’s workload relative to financial reporting has significantly increased.

More

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

February Jobs Report: Stunning!

By: mstbanking Mar 9, 2018 11:27:12 AM

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

The February U.S. employment report came a week later than the usual first Friday of the month, but the figures proved worth waiting for. It showed a gain of 313,000 jobs over the month, well above the 205,000 expected. The two previous months were revised upward as well. All in all, it was a report that earned being described as “stunning.” 

More

Topics: economic indicators

SOMETHING TO SAY?