Calculating and Documenting the Allowance for Loan and Lease Losses (ALLL) Webinar
The Allowance for Loan and Lease Losses (“ALLL”) represents one of the most significant estimates in an institution’s financial statements and regulatory reports. It is a valuation reserve established and maintained by charges against the bank’s operating income and is an estimate of loans that may be uncollectable (see complete description below).
Click Here for Webinar Description and Audience
The Allowance for Loan and Lease Losses (“ALLL”) represents one of the most significant estimates in an institution’s financial statements and regulatory reports. It is a valuation reserve established and maintained by charges against the bank’s operating income and is an estimate of loans that may be uncollectable. Regulators are just as interested in your bank’s methodology in calculating the ALLL in addition to the adequacy of the reserve.
Because of its significance, each institution has a responsibility for developing, maintaining and documenting a comprehensive, systematic and consistently applied process for determining the amount of the ALLL and the Provision for Loans & Lease Losses. To fulfill this responsibility, each institution should ensure controls are in place to consistently determine the ALLL in accordance with:
•Generally Accepted Accounting Principles
•Institution’s stated policies and procedures
•Management’s best judgment
•Relevant supervisory guidance
This program will also review the proposed restructuring of the ALLL as we know it today. That change is referred to as “CECL” (Current Economic Credit Losses) and will have a dramatic change in the methodology on how reserves for potential loan losses are calculated in order to in compliance with Generally Accepted Accounting Principles.
•Establishment and Purpose of the ALLL
•Review of Regulators expectations for the ALLL as set forth in:
◦FASB ASC 450-20 Contingencies – Loss Contingencies (formerly FASB 5 – ccounting for Contingencies)
◦FASB ASC 310-10-35-2 through 30, Receivables-Overall-Subsequent Measurement-Impairment (formerly FASB 113 – Accounting by Creditors for Impairment of a Loan)
◦Various Interagency Policies on the ALLL Methodology and Adequacy
•Proposed changes to the present method of calculating the ALLL
•Methodology to Quantify the Qualitative Factors under FASB ASC 450-20 (Formerly FAS 5)
•Available software to aid in the calculation of the ALLL
After completing this course, the participant will have an enhanced understanding of the importance of creating and maintaining an adequate Allowance that is legally defensible and insures the bank is operating in a safe and sound environment.
Who Should Attend?
CEO’s, Presidents & Board Members, Credit Administrators, Senior Credit Officers, Loan Review Officers, Compliance Officers, Senior Loan Officers, Commercial/Consumer Loan Officers, Loan Operation Officers, Loan Administrators.
Click Here for Continuing Education Credits (CEC) Info
This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.
Delivery Option Descriptions
With this option, you will participate in the webinar (via the internet) as it is being presented. You will login to the webinar on your PC to view the PowerPoint presentation, and you have the option of using your PC speakers or a telephone for the audio. Participants can type and send their questions to the instructor. Many companies are now running their PC through an LCD projector allowing many employees to participate in the same room.
SIX MONTH ONDEMAND VIDEO RECORDING:
With this option, you will receive an e-mail that contains a link to the PowerPoint slides (to download, print, and copy) as well as a link to the media player where you will view and hear the entire webinar just as it was delivered, featuring the full-color PowerPoint presentation with audio. You can pause, fast-forward and rewind as needed, which makes it an effective training tool. The weblink will be available to you (and anyone else in the company) for up to six months and can be accessed 24/7 as many times as you wish. Delivered via e-mail the day after the webinar takes place.
CD-ROM VIDEO RECORDING:
If you do not have internet access or want to make the webinar part of your training library, the CD-ROM Recording is a great option for viewing a webinar. You can pause, fast-forward and rewind as needed, which makes it an effective training tool. With this option, you will receive a download of the PowerPoint slides and a CD-ROM Recording (featuring PowerPoint presentation with audio) of the webinar via regular mail. Mailed 7 to 10 days after the webinar takes place.
Webinars can be scheduled and offered exclusively for your company. They can even be customized to best fit your needs. To find out more, please complete the in-house request form found in the Schedule and Registration Information section below.