CECL Workshop Vintage Method
|
|
- Vivian Merritt
- 5 years ago
- Views:
Transcription
1 CECL Workshop Vintage Method John J. Doherty, CPA MEMBER OF ALLINIAL GLOBAL, AN ASSOCIATION OF LEGALLY INDEPENDENT FIRMS 2017 Wolf & Company, P.C.
2 Introduction John J. Doherty Member of the Firm
3 Overview Vintage analysis measures losses based on the origination date and the historical performances of loans with similar risk characteristics. Vintage methodology works well with loans that follow patterns that are similar and predicative for subsequent generations of loans (homogeneous). Vintage analysis requires segmentation and stratification of the loan portfolio, with the additional requirement that loans be stratified by origination period. 3
4 Pros & Cons Pros Forecasting ability can improve as more data is collected, allowing more precise qualitative and quantitative adjustments to be made at the vintage level Adequately segmented data eliminates qualitative changes in portfolio growth/mix Can be used to isolate changes in economic environment, collateral value and underwriting to a given year Easier to understand Consistent with disclosure requirements and expectations of life of loan estimate Flexible to add new information for new loans Cons Data mining can be extensive based on the level of disaggregation does your loan system provide enough data to efficiently pull together the required data? Monitoring of prepayments is required to ensure that baseline data that drives the calculation is reasonable. Doesn t work well with revolvers or loans subject to frequent renewal (i.e. commercial) 4
5 Example: Residential Real Estate 30 year, first position lien, fixed rate residential real estate Consider separate calculations for variable versus fixed rate due to prepayment speeds Generally should apply vintage to a homogeneous portfolio where underwriting standards and loan terms and behavior are generally consistent Loans conforming to secondary market standards are likely homogeneous with respect to underwriting standards 5
6 Example: Residential Real Estate (in 000 s) Vintage Principal Collections Year Originations ,000 6,667 6,125 6,548 6,978 7,152 6, ,400-7,067 6,941 7,397 7,581 6,922 6, , ,491 7,840 8,036 7,337 6,882 7, , ,940 8,518 7,778 7,295 7,799 8, , ,417 8,244 7,733 8,267 8,810 9, , ,922 8,197 8,763 9,338 9,571 8,739 Totals 6,667 13,192 20,980 30,155 39,704 45,734 36,599 32,186 26,459 18,600 8,739 Period End Loan Balances 33,333 62,542 86, , , ,582 85,983 53,798 27,339 8,739 - (Note: shaded regions are future estimates) Data through 12/31/16 is known Estimated life of loan is 6 years, but will vary based on rate environment and prepayment speeds Loans stratified by year of origination and type of loan Above is fairly linear, results will vary significantly by rate environment 6
7 Example: Residential Real Estate (in 000 s) Origination Charge-offs by Origination Year ($) Year Total % % % % % % Totals ,789 Origination Losses by Vintage By Year year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total % 0.21% 0.28% 0.31% 0.16% 0.09% 1.18% % 0.20% 0.27% 0.30% 0.15% 0.09% 1.13% % 0.19% 0.26% 0.29% 0.13% 0.09% 1.07% % 0.18% 0.25% 0.23% 0.13% 0.09% 0.97% % 0.17% 0.18% 0.22% 0.13% 0.09% 0.88% % 0.12% 0.18% 0.23% 0.14% 0.11% 0.84% Loss rates here correspond to actual charge-off history and loan balance data as previously presented, for Blue highlights represent expected credit losses over the life of the loan vintages, qualitatively adjusted for reasonable supportable forecasted items (illustrated on next slide). 7
8 Example: Residential Real Estate Loss Rates by Vintage Q Factor by Vintage - Eg. MA Unemployment Origination Y1 Y2 Y3 Y4 Y5 Y6 Origination Y1 Y2 Y3 Y4 Y5 Y % 0.21% 0.28% 0.31% 0.16% 0.09% % 6.70% 6.10% 5.10% 4.30% 3.20% % 0.20% 0.27% 0.30% 0.15% % 6.10% 5.10% 4.30% 3.20% % 0.19% 0.26% 0.29% % 5.10% 4.30% 3.20% % 0.18% 0.25% % 4.30% 3.20% % 0.17% % 3.20% % % Average 0.11% 0.19% 0.27% 0.30% 0.16% 0.09% Average 5.35% 5.08% 4.68% 4.20% 3.75% 3.20% Loss/Q factor 1.96% 3.74% 5.67% 7.14% 4.13% 2.81% Estimate of expected losses: Calculating the correlation between loss factor and qualitative (Q) factor (MA unemployment). The correlation is established by measuring historical losses and tying to the Q Factor. The idea being that you can predict the Q factor and use this to adjust future loss ratios. Above: the average loss for Y2 is 0.19% which is 3.74% of the Q factor. 8
9 Example: Residential Real Estate (in 000 s) Loss Rates by Vintage Q Factor by Vintage - Eg. MA Unemployment Origination Y1 Y2 Y3 Y4 Y5 Y6 Origination Y1 Y2 Y3 Y4 Y5 Y % 0.21% 0.28% 0.31% 0.16% 0.09% % 6.70% 6.10% 5.10% 4.30% 3.20% % 0.20% 0.27% 0.30% 0.15% % 6.10% 5.10% 4.30% 3.20% % 0.19% 0.26% 0.29% % 5.10% 4.30% 3.20% % 0.18% 0.25% % 4.30% 3.20% % 0.17% % 3.20% % % Average 0.11% 0.19% 0.27% 0.30% 0.16% 0.09% Average 5.35% 5.08% 4.68% 4.20% 3.75% 3.20% Loss/Q factor 1.96% 3.74% 5.67% 7.14% 4.13% 2.81% Loss Rates by Vintage Reasonable Supportable Forecast Origination Y1 Y2 Y3 Y4 Y5 Y6 Origination Y1 Y2 Y3 Y4 Y5 Y % 0.21% 0.28% 0.31% 0.16% 0.09% % 6.70% 6.10% 5.10% 4.30% 3.20% % 0.20% 0.27% 0.30% 0.15% 0.09% % 6.10% 5.10% 4.30% 3.20% 3.15% % 0.19% 0.26% 0.29% 0.13% 0.09% % 5.10% 4.30% 3.20% 3.15% 3.10% % 0.18% 0.25% 0.23% 0.13% 0.09% % 4.30% 3.20% 3.15% 3.10% 3.15% % 0.17% 0.18% 0.22% 0.13% 0.09% % 3.20% 3.15% 3.10% 3.15% 3.30% % 0.12% 0.18% 0.23% 0.14% 0.11% % 3.15% 3.10% 3.15% 3.30% 3.75% Average 0.11% 0.18% 0.24% 0.26% 0.14% 0.09% Average 5.35% 4.76% 4.16% 3.67% 3.37% 3.28% Loss/Q factor 1.96% 3.74% 5.67% 7.14% 4.13% 2.81% Arrive at reasonable supportable forecast for Q factor (future unemployment) Multiply the average loss factor times Q ratio for each period to arrive at an estimated future loss 9
10 Additional Considerations Vintage analysis can also be applied without tying to a Q factor. The average loss by vintage is useful in itself and can be qualitatively adjusted for new information. Qualitative adjustments can be evaluated in a similar fashion to how they are arrived at now, with the inclusion of reasonable supportable forecasts. In our previous example, one specific Q factor (unemployment), was tied directly to loss rates used as the starting point for calculating expected losses. Additional qualitative adjustments can be made based on the economic current environment (delinquency, management etc.) and other forecasted items (Schiller index, foreclosure rates, interest rates, LTV, other economic data). Qualitative adjustments can be made by vintage or evaluated at the pool level. Vintage analysis identifies the loss emergence period (LEP), which may be relevant information for other methods. For example, a discontinued loan segment that is seasoned would require less reserves if the LEP is known. 10
11 Another Approach Qualitative Adjustments to Historical Losses Current conditions vintage Refer to qualitative memo for detail analysis of metrics. Delinquency ratio is consistent year to year but higher than custom peer group. Net losses were relatively elevated during the years 2009 to 2012 and have since decreased and are favorable to peer. The recent trend is positive and the annual loss rate will decrease as lower loss years are added to the historical period. The Bank tracks average FICO and LTV to identify changes in credit risk and there is no change in portfolio metrics. Based on current real estate valuations the average LTV of the portfolio should be improving and providing more collateral support. There have been no significant changes in lending policies, underwriting or management during There are no indications that the average annual loss rate for 2016 should be adjusted for credit quality concerns. Management will make a qualitative adjustment to increase the historical loss 3 basis points for lack of historical loss consistency across the different vintages. 11
12 Forecast 2016 vintage Another Approach Qualitative Adjustments to Historical Losses Credit risk drivers are unemployment, local real estate values, and interest rates. (General consensus centers around a 2 year forecast). Unemployment Trend for state unemployment rate is positive at 3.2%, decreasing from 4.3% in Regional unemployment is 3.6% at December Fed outlook over the next 6 years is marginal declines over the next two years, followed by increases through 2022 up to 4%. The Bank's loan committee assesses employment factor as stable. An adjustment of 5 basis points will be made based on expected future increases in unemployment. Real estate Per Sept 2016, FRB Boston's quarterly publication NEPPC: Home prices continued to grow both nationally and regionally, with national growth rates continuing to exceed regional rates. All six New England states reported positive house price growth year-over-year, but these gains all trailed the national rate. The Bank's loan committee assesses this factor as stable. No forecast adjustment is necessary for real estate values. 12
13 Another Approach Qualitative Adjustments to Historical Losses Forecast (continued) Interest rates Fed increased rates during 2016 and effect is reflected in year end prepayment speed assumption. Bloomberg median factor for 30 year FNMA MBS with same terms is 239% (or 5.75 yr life) at 12/31/16. Generally the bank s prepayment speeds lag secondary market speeds. The prepayment speed assumption for this estimate has been adjusted to a 6 year life based on historical performance and already reflects extension due to the 2016 rate hike. Management is conservative in the determination of prepayment risk and no adjustment has been made for future rate hikes as management cannot forecast this factor. 13
14 Another Approach Qualitative Adjustments to Historical Losses Vintage loss factor and Adjustments Vintage average loss (previous 5 year expected vintage loss plus 2016 actual) 1.03% Adjustments Current Conditions Forecasts 0.03% 0.05% Total 2016 Expected Loss Factor - Vintage 1.11% 14
15 Qualitative Factors Schedule out economic factors by vintage and analyze for trends that should warrant additional consideration. Economic Factor Summary by Vintage Year Micro Data: Delinquencies 0.76% 0.93% 1.05% 1.09% 0.00% Non-accrual rates 0.82% 0.78% 0.82% 0.71% 0.69% Underwriting stable stable stable stable stable Added 5 resi. Management stable stable stable lenders stable Macro Data: Unemployment 6.70% 6.10% 5.10% 4.30% 3.20% Interest Rates Shiller Price Index Change 6.50% 10.71% 4.45% 5.17% 5.40% Others to consider if available Average LTV Average FICO scores 15
16 Observations 1. Data mining by segment and vintage is critical 2. Vintage analysis requires a lot of data, but may result in a more precise estimate of expected credit losses. Loss rates decrease over time as borrower obtains equity in collateral, but are also impacted by qualitative considerations, including reasonable supportable forecasts. 3. Different approaches to applying qualitative adjustments 16
17 Questions? John J. Doherty Member of the Firm
CELC Workshop Historical Loss Rate Model
CELC Workshop Historical Loss Rate Model Jim McGough, CPA, CGMA Michaela Bellefeuille, CPA MEMBER OF ALLINIAL GLOBAL, AN ASSOCIATION OF LEGALLY INDEPENDENT FIRMS 2017 Wolf & Company, P.C. Introduction
More informationCECL Workshop Discounted Cash Flow Method
CECL Workshop Discounted Cash Flow Method Martin M. Caine, CPA Alan D. Lloyd, CPA MEMBER OF ALLINIAL GLOBAL, AN ASSOCIATION OF LEGALLY INDEPENDENT FIRMS 2017 Wolf & Company, P.C. Introduction Martin Caine,
More informationFASB s CECL Model: Navigating the Changes
FASB s CECL Model: Navigating the Changes Planning for Current Expected Credit Losses (CECL) By R. Chad Kellar, CPA, and Matthew A. Schell, CPA, CFA Audit Tax Advisory Risk Performance 1 Crowe Horwath
More informationAre you prepared? FASB s CECL Model for Impairment Demystifying the Proposed Standard
Are you prepared? FASB s CECL Model for Impairment Demystifying the Proposed Standard Chad Kellar, CPA Senior Manager Crowe Horwath LLP Lauren Smith, CPA Senior Manager Primatics Financial Raj Mehra Executive
More informationCECL ONE YEAR CLOSER
CECL ONE YEAR CLOSER Greg Clausen Partner Eide Bailly LLP Darrell Lingle Partner Eide Bailly LLP CECL One Year Closer to Implementation Greg Clausen, CPA Partner gclausen@eidebailly.com 515.875.7595 Darrell
More informationA CECL Primer. About CECL
A CECL Primer Introduction The purpose of this paper is to provide a brief overview of Visible Equity s solution to CECL (Current Expected Credit Loss). Many facets of our CECL solution, such as the methods
More informationBank-Fund Staff Federal Credit Union. Financial Statements
Bank-Fund Staff Federal Credit Union Financial Statements For the Years Ended December 31, 2011 and 2010 Financial Statements C O N T E N T S Page Independent Auditor s Report... 1 Financial Statements:
More informationInside the new credit loss model
August 2016 Inside the new credit loss model Requirements and implementation considerations An article by Chad Kellar, CPA, and Matthew A. Schell, CPA, CFA Audit / Tax / Advisory / Risk / Performance Smart
More informationAccounting for Credit Losses, Where will the road end up?
Accounting for Credit Losses, Where will the road end up? PACB 137th ANNUAL CONFERENCE BARRY M. PELAGATTI, CPA Assurance Partner, BDO USA, LLP September 6, 2014 BDO USA, LLP, a Delaware limited liability
More informationMortgage-Backed Securities
-Backed Securities Jay Webb Managing Director, Information Technology UBS Investment Bank Origination Hi, I m Matt I need a mortgage! I have money! Origination Lender I need a mortgage! Applies underwriting
More informationFinancial Statements and Report of Independent Certified Public Accountants. Bank-Fund Staff Federal Credit Union. December 31, 2013 and 2012
Financial Statements and Report of Independent Certified Public Accountants Bank-Fund Staff Federal Credit Union Contents Report of Independent Certified Public Accountants 3 Page Financial Statements
More informationA Comprehensive Look at the CECL Model
A Comprehensive Look at the CECL Model Table of Contents SCOPE... 3 CURRENT EXPECTED CREDIT LOSS MODEL... 3 LOSS PROBABILITIES... 5 MEASUREMENT OF EXPECTED CREDIT LOSSES... 5 Individual Versus Pooled Assessment...
More informationEstimating Credit Losses: Evaluating Loss Emergence Period and Qualitative Factors
Estimating Credit Losses: Evaluating Loss Emergence Period and Qualitative Factors INTRODUCTION The AICPA Audit and Accounting Guide Depository and Lending Institutions: Banks and Savings Institutions,
More information2017 CEO & Board University What Boards Need to Know About CECL
2017 CEO & Board University What Boards Need to Know About CECL Jim McGough, CPA, CGMA MEMBER OFALLINIAL GLOBAL, AN ASSOCIATION OF LEGALLY INDEPENDENT FIRMS 2017 Wolf & Company, P.C. Introduction Jim McGough,
More informationIvan Gjaja (212) Natalia Nekipelova (212)
Ivan Gjaja (212) 816-8320 ivan.m.gjaja@ssmb.com Natalia Nekipelova (212) 816-8075 natalia.nekipelova@ssmb.com In a departure from seasonal patterns, January speeds were 1% CPR higher than December speeds.
More informationFINANCIAL STATEMENTS DECEMBER 31, 2016
FINANCIAL STATEMENTS DECEMBER 31, 2016 PO Box 1430 18 Georgia Heritage Place Dallas, GA 30132 P: 770.445.8888 F: 770.445.8889 www.georgiaheritagebank.com GEORGIA HERITAGE BANK FINANCIAL REPORT DECEMBER
More informationWEST TOWN BANK & TRUST AND SUBSIDIARY Cicero, Illinois. CONSOLIDATED FINANCIAL STATEMENTS December 31, 2015 and 2014
Cicero, Illinois CONSOLIDATED FINANCIAL STATEMENTS Cicero, Illinois CONSOLIDATED FINANCIAL STATEMENTS CONTENTS INDEPENDENT AUDITOR'S REPORT... 1 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS...
More informationWest Town Bancorp, Inc.
Report on Consolidated Financial Statements Contents Page Independent Auditor's Report... 1-2 Consolidated Financial Statements Consolidated Balance Sheets... 3 Consolidated Statements of Income... 4 Consolidated
More informationALLL Today: Challenges & Solutions.
ALLL Today: Challenges & Solutions. September 14 2016 ALLL Today: Challenges & Solutions. September 15, 2016 P R E S E N T E D B Y Tim McPeak Executive Risk Management Consultant Sageworks Agenda. Current
More informationCECL: Data, Scenarios and Cash Flow Thoughts
CECL: Data, Scenarios and Cash Flow Thoughts H. Walter Young November 14, 2016 2016 Risk Management Association Annual Risk Management Conference Dallas, Texas Table of Contents I. Data: Not all data is
More informationLending and Collateral Q&A
November 14, 2017 Note - Each answer in this document is written as if it were a stand-alone response. Therefore, some information may be repeated. What is an advance and how do advances work? The FHLBanks
More informationFinancial Instruments Credit Losses How to Calculate CECL in Excel Monday, June 11, 2018
Financial Instruments Credit Losses How to Calculate CECL in Excel Monday, June 11, 2018 Presented by: Ryan Abdoo, CPA, CGMA Industry Technical Leader Plante Moran Chris Ritter, CPA Partner Plante Moran
More informationSAVE THE DATE! 22nd Annual CFO Council Conference The Disneyland Hotel Anaheim, CA May 15 18, 2016
SAVE THE DATE! 22nd Annual CFO Council Conference The Disneyland Hotel Anaheim, CA May 15 18, 2016 2 A Practical Guide to the Allowance for Expected Credit Loss FASB Subtopic 825-15 Agenda 1 2 3 4 Introduction
More informationAll of the Method None of the Madness
CECL Simplified Current Expected Credit Losses ASU 2016-13 All of the Method None of the Madness The ProBank Austin 2017 Webinar Series November 9, 2017 11:00 AM ESDT Live Case Study - CECL I. Example
More informationDART FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2015 (With Independent Auditor s Report Thereon) TABLE OF CONTENTS Page INDEPENDENT AUDITOR S REPORT... 1 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance
More informationCECL Sleepless Nights
CECL Sleepless Nights What Should be Keeping you up at Night Measure Expected Credit Losses on Amortized Assets (CECL) The new Credit Loss standard applies to all amortizable assets included in the following
More informationCECL SUMMER GAMES Part 5: Key Disclosures & Reports 6/29/2017
CECL SUMMER GAMES Part 5: Key Disclosures & Reports 6/29/2017 1 CPE Credits Visible Equity and the content of this webinar is officially approved with the NASBA (National Association of State Boards of
More informationLoan Level Mortgage Modeling
Loan Level Mortgage Modeling Modeling and Data Challenges Shirish Chinchalkar October 2015 Agenda 1. The complexity of loan level modeling 2. Our approach for modeling mortgages 3. Data Challenges 4. Conclusion
More informationEye on the Prize: Accounting s Impact on the Bottom Line Gina Anderson and Sara Dopkin. financial services
Eye on the Prize: Accounting s Impact on the Bottom Line Gina Anderson and Sara Dopkin 1 Presenters: Gina Anderson and Sara Dopkin Gina has more than 18 years of experience specializing in audit and accounting
More informationIllustrative Financial Statements for 2018 Financial Institutions
Smart Decisions. Lasting Value. Illustrative Financial Statements for 2018 Financial Institutions November 2018 Crowe LLP Financial Institutions Illustrative Financial Statements for 2018 November 2018
More informationDART FINANCIAL CORPORATION INDEPENDENT AUDITORS REPORT
INDEPENDENT AUDITORS REPORT 2012 Rehmann Robson 675 Robinson Rd. Jackson, MI 49203 Ph: 517.787.6503 Fx: 517.788.8111 www.rehmann.com INDEPENDENT AUDITORS REPORT February 15, 2013 Shareholders and Board
More informationFASB Financial Instruments Project
FASB Financial Instruments Project June 18, 2013 2:00 3:15 pm Presented by: Jean Joy, CPA Director of Financial Institutions Wolf & Company, P.C. 99 High Street Boston, MA 02110 P: (617) 428-5432 E: jjoy@wolfandco.com
More informationBank of America 2018 Dodd-Frank Act Mid-Cycle Stress Test Results BHC Severely Adverse Scenario October 18, 2018
Bank of America 2018 Dodd-Frank Act Mid-Cycle Stress Test Results BHC Severely Adverse Scenario October 18, 2018 Important Presentation Information The 2018 Dodd-Frank Act Mid-Cycle Stress Test Results
More informationWest Town Bancorp, Inc.
Report on Consolidated Financial Statements For the years ended Contents Page Independent Auditor's Report... 1-2 Consolidated Financial Statements Consolidated Balance Sheets... 3 Consolidated Statements
More informationUnravelling the Guidelines in Preparation for CECL (ASU ) 11/29/2016
Unravelling the Guidelines in Preparation for CECL (ASU 2016-13) 11/29/2016 1 Today s Agenda Introductions CECL Overview Impact on the Institution i Calculation Methodologies Data Requirements Disclosure
More informationIllustrative Financial Statements for 2017 Financial Institutions
Smart Decisions. Lasting Value. Illustrative Financial Statements for 2017 Financial Institutions November 2017 Crowe Horwath LLP Financial Institutions Illustrative Financial Statements for 2017 November
More informationMacroeconomic Adverse Selection: How Consumer Demand Drives Credit Quality
Macroeconomic Adverse Selection: How Consumer Demand Drives Credit Quality Joseph L. Breeden, CEO breeden@strategicanalytics.com 1999-2010, Strategic Analytics Inc. Preview Using Dual-time Dynamics, we
More informationFannie Mae 2010 First Quarter Credit Supplement. May 10, 2010
Fannie Mae 2010 First Quarter Credit Supplement May 10, 2010 1 These materials present tables and other information about Fannie Mae, including information contained in Fannie Mae s Quarterly Report on
More informationA N N UA L R E P O RT
2015 ANNUAL REPORT ANNUAL REPORT June 30, 2015 CONTENTS LETTER TO SHAREHOLDERS... 2 INDEPENDENT AUDITOR S REPORT... 3 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets... 5 Consolidated Statements
More informationCredit Modeling, CECL, Concentration, and Capital Stress Testing
Credit Modeling, CECL, Concentration, and Capital Stress Testing Presented by Wilary Winn Douglas Winn, President Brenda Lidke, Director Frank Wilary, Principal Matt Erickson, Director September 26, 2016
More informationA N N U A L R E P O RT
2 0 1 7 A N N U A L R E P O RT ANNUAL REPORT June 30, 2017 CONTENTS LETTER TO SHAREHOLDERS... 2 INDEPENDENT AUDITOR S REPORT... 3 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets... 5 Consolidated
More informationCenter for Plain English Accounting
Report February 22, 2017 Center for Plain English Accounting AICPA s National A&A Resource Center available exclusively to PCPS members The Current Expected Credit Loss (CECL) Model Are You Ready? Background
More informationFannie Mae 2009 Second Quarter Credit Supplement. August 6, 2009
Fannie Mae 2009 Second Quarter Credit Supplement August 6, 2009 1 These materials present tables and other information about Fannie Mae, including information contained in Fannie Mae s Quarterly Report
More informationCorporate America Credit Union Annual Meeting Preparing for FASB Current Expected Credit Loss (CECL) Model April 2017
Corporate America Credit Union Annual Meeting Preparing for FASB Current Expected Credit Loss (CECL) Model April 2017 Eve Rogers, Partner Atlanta, GA Merri Ellen Wadsworth, Senior Manager Atlanta, GA 2016
More informationSEASONS FEDERAL CREDIT UNION
CONSOLIDATED FINANCIAL STATEMENTS (With Independent Auditor s Report Thereon) TABLE OF CONTENTS Page INDEPENDENT AUDITOR S REPORT... 1 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statements of Financial
More informationA N N U A L R E P O RT
2 0 1 6 A N N U A L R E P O RT ANNUAL REPORT June 30, 2016 CONTENTS LETTER TO SHAREHOLDERS... 2 INDEPENDENT AUDITOR S REPORT... 3 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets... 5 Consolidated
More informationCECL Accounting Guide
CECL Accounting Guide Contents 04 INTRODUCTION Background 05 Guide Overview 07 CECL Scope and Highlights 08 Introductory Example 09 37 CREDIT QUALITY DISCLOSURES Credit Quality Indicators 38 Management
More informationReport of Independent Registered Public Accounting Firm 1-2. Consolidated Statements of Comprehensive Income 4
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 Contents Report of Independent Registered Public Accounting Firm 1-2 Consolidated Financial Statements Consolidated Balance Sheets 2 Consolidated
More informationCREDIT RISK MANAGEMENT GUIDANCE FOR HOME EQUITY LENDING
Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of Thrift Supervision National Credit Union Administration CREDIT
More information2013 Financial Institutions Conference Loan Acquisition Accounting
2013 Financial Institutions Conference Loan Acquisition Accounting Today s Objectives Understand main drivers/inputs in initial valuation (Day 1) Understand how impact of those drivers/inputs impact go-forward
More informationSAFE CREDIT UNION Folsom, California. FINANCIAL STATEMENTS December 31, 2017 and 2016
Folsom, California FINANCIAL STATEMENTS December 31, 2017 and 2016 Folsom, California FINANCIAL STATEMENTS December 31, 2017 and 2016 CONTENTS INDEPENDENT AUDITOR S REPORT... 1 FINANCIAL STATEMENTS: STATEMENTS
More informationBank of America Dodd-Frank Act Mid-Cycle Stress Test Results BHC Severely Adverse Scenario July 17, 2015
Bank of America Dodd-Frank Act Mid-Cycle Stress Test Results BHC Severely Adverse Scenario July 17, 2015 Important Presentation Information The 2015 Dodd-Frank Act Mid-Cycle Stress Test Results Disclosure
More informationQUARTERLY REPORT TO INVESTORS QUARTERLY REPORT TO INVESTORS SIX MONTHS ENDED AS OF AND FOR THE
QUARTERLY REPORT TO INVESTORS AS OF QUARTERLY AND FOR THE QUARTERLY REPORT TO INVESTORS REPORT SIX MONTHS ENDED TO INVESTORS AS JUNE OF QUARTERLY AND 30, FOR 2010 THE AS OF AND FOR THE THREE REPORT AND
More informationConseco, Inc. Second Quarter 2008 Financial and Operating Results Presentation
Conseco, Inc. selected slides from our Second Quarter 2008 Financial and Operating Results Presentation (as filed in our Current Report on Form 8-K dated August 12, 2008) Key Debt Covenants CNO ($ millions)
More informationCECL Modeling FAQs. CECL FAQs
CECL FAQs Moody s Analytics helps firms with implementation of expected credit loss and impairment analysis for CECL and other evolving accounting standards. We provide advisory services, data, economic
More informationKeyCorp Beth E. Mooney Don Kimble
KeyCorp Fourth Quarter 2017 Earnings Review January 18, 2018 Beth E. Mooney Chairman and Chief Executive Officer Don Kimble Chief Financial Officer FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION
More informationKeyCorp. Third Quarter 2017 Earnings Review. Don Kimble Chief Financial Officer. Beth E. Mooney Chairman and Chief Executive Officer.
KeyCorp Third Quarter 2017 Earnings Review October 19, 2017 Beth E. Mooney Chairman and Chief Executive Officer Don Kimble Chief Financial Officer FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION
More informationBank-Fund Staff Federal Credit Union
Bank-Fund Staff Federal Credit Union Financial Statements McGladrey & Pullen, LLP is a member of RSM International an affiliation of separate and independent legal entities. TABLE OF CONTENTS INDEPENDENT
More informationFedLinks. Connecting Policy with Practice. Expectations for Banks. How Examiners Assess the ALLL
FedLinks Connecting Policy with Practice ALLOWANCE FOR LOAN AND LEASE LOSSES JANUARY 2013 During periods of unstable financial conditions, meeting the supervisory expectations for maintaining an appropriate
More informationPierpont Securities LLC. pierpontsecurities.com 2012 Pierpont Securities, a member of FINRA and SIPC
Pierpont Securities LLC SECURITIZATION OVERVIEW SECURITIZATION Section I: Section II: Section III: Appendix: Definition Process Analysis Market Defined Terms P R O P R I E T A R Y A N D C O N F I D E N
More informationFannie Mae 2009 First Quarter Credit Supplement. May 8, 2009
Fannie Mae 2009 First Quarter Credit Supplement May 8, 2009 1 These materials present tables and other information about Fannie Mae, including information contained in Fannie Mae s Quarterly Report on
More informationChanges to the ALLL: Current Expected Credit Losses (CECL)
Changes to the ALLL: Current Expected Credit Losses (CECL) Presented by: Greg Schwartz, CPA Course Objectives Understand the changes coming from CECL Understand the impact of CECL Discuss timing Questions
More informationTHC Asset-Liability Management (ALM) Insight Issue 5
, WHOLE LOAN SALE TO AGENCIES: A Strategy key words: risk capacity, G-spread, LLPA, yield attribution, fixed rate 1-4 family mortgage, whole loan pricing THC Asset-Liability Management (ALM) Insight Issue
More informationUNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 10-K. For the transition period from to.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended
More informationAllowance for Loan Losses A Practical Approach. May 19, 2013 Bart P. Ferrin, CPA Ferrin & Company, LLC
Allowance for Loan Losses A Practical Approach May 19, 2013 Bart P. Ferrin, CPA Ferrin & Company, LLC Accounting Standards Guidance FASB Guidance July 2010, the FASB issued Accounting Standards Update
More informationCredit Underwriting Practices
Comptroller of the Currency Administrator of National Banks US Department of the Treasury 2011 Survey of OF THE R C LE UR R EN C Y CO M P T R O L Credit Underwriting Practices 186 3 Contents Introduction...
More informationMaking the Business Case for the CECL Approach
Making the Business Case for the CECL Approach Attend any recent or upcoming financial institution conference and you will find considerable discussion and debate about the new accounting guidance related
More informationFirst Quarter 2016 Supplemental Information
First Quarter 2016 Supplemental Information May 4, 2016 Safe Harbor Notice This presentation, other written or oral communications and our public documents to which we refer contain or incorporate by reference
More informationResidential Mortgage Credit Model
Residential Mortgage Credit Model June 2016 data made beautiful Four Major Components to the Credit Model 1. Transition Model: An idealized roll-rate model with three states: i. Performing (Current, 30-DPD)
More informationSANTANDER CONSUMER USA HOLDINGS INC. Second Quarter
SANTANDER CONSUMER USA HOLDINGS INC. Second Quarter 2017 07.28.2017 IMPORTANT INFORMATION 2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private
More informationSecurity-Level Disclosure
Security-Level Disclosure Attribute Names & s Freddie Mac provides loan-level information at PC issuance and on a monthly basis for all newly issued fixed-rate and adjustable-rate mortgage () PC securities
More informationSimple But Not Simpler: Day 1 Modeling Approaches. A review of simple approaches available to community banks on the road to their CECL journey.
Simple But Not Simpler: Day 1 Modeling Approaches A review of simple approaches available to community banks on the road to their CECL journey. A Word on Incurred Loss Approach Today Typical ALLL at a
More informationNACUSAC Conference CECL Implementation and Impact to Capital Crowe Horwath LLP
NACUSAC Conference CECL Implementation and Impact to Capital 2018 Crowe Horwath LLP Agenda Session 1 CECL Overview CECL Standard Refresher Recent Regulatory Updates Session 2 - Practical Risk Assessment
More informationCECL Static Pool White Paper
CECL Static Pool White Paper Introduction In this white paper, we offer an in-depth description of Visible Equity s Static Pool method for collectively reviewing loans in CECL. This method is a CECL-compliant
More informationCredit Card Receivable-Backed Securities
Credit Card Receivable-Backed Securities Analysts: Thomas Upton, New York The securitization of credit card receivables presents the issuer with several potential benefits, including the efficient use
More informationFINANCIAL HIGHLIGHTS (Unaudited)
FINANCIAL HIGHLIGHTS (Unaudited) (In thousands, except per share amounts) 2017 Change 2016 2015 2014 2013 AT YEAR-END Assets $ 817,949 + 7% $ 764,574 $ 737,315 $ 672,360 $ 645,215 Loans 341,345 + 8% 315,101
More informationCOUNTDOWN TO CECL: IS YOUR FINANCIAL INSTITUTION ON TRACK?
COUNTDOWN TO CECL: IS YOUR FINANCIAL INSTITUTION ON TRACK? Presented by: Scott Deters David Klopfer Katie Schnieber COUNTDOWN TO CECL: IS YOUR FINANCIAL INSTITUTION ON TRACK? Presented by: Scott Deters
More informationCONSOLIDATED ANNUAL REPORT. Fleetwood. Bank Corporation. What you want your bank to be
2016 CONSOLIDATED ANNUAL REPORT Fleetwood Bank Corporation & What you want your bank to be CORPORATE MISSION STATEMENT Our educated and motivated team will become the leading provider of financial services
More informationAllowance for Loan Losses - Understanding CECL and Current Trends
2014 CliftonLarsonAllen LLP Presentation for the National Association of Federal Credit Unions Allowance for Loan Losses - Understanding CECL and Current Trends September 2, 2015 CLAconnect.com Today s
More informationCRE Concentrations: Practical Management Techniques
CRE Concentrations: Practical Management Techniques Tuesday, 6/27/2017 11:00:00 AM - 12:00:00 PM Presented by: Adam Mustafa Co-founder and Managing Partner Invictus Consulting Group 275 Madison Avenue,
More informationLOAN DEFAULT ANALYSIS: A CASE STUDY FOR CECL by Guo Chen, PhD, Director, Quantitative Research, ZM Financial Systems
LOAN DEFAULT ANALYSIS: A CASE STUDY FOR CECL by Guo Chen, PhD, Director, Quantitative Research, ZM Financial Systems THE DATA Data Overview Since the financial crisis banks have been increasingly required
More informationT A B L E O F C O N T E N T S
T A B L E O F C O N T E N T S PRESIDENT S LETTER... 3 INDEPENDENT AUDITORS REPORT... 4-5 FINANCIAL STATEMENTS Consolidated Balance Sheet... 6 Consolidated Statement of Income... 7 Consolidated Statement
More informationReport of Independent Auditors and Consolidated Financial Statements for. Arizona Federal Credit Union and Subsidiaries
Report of Independent Auditors and Consolidated Financial Statements for Arizona Federal Credit Union and Subsidiaries December 31, 2016 and 2015 CONTENTS REPORT OF INDEPENDENT AUDITORS 1 2 PAGE CONSOLIDATED
More informationMarathon Banking Corporation and Subsidiaries Consolidated Financial Statements December 31, 2011 and 2010
Marathon Banking Corporation and Subsidiaries Consolidated Financial Statements Index Page(s) Independent Auditors Report... 1 Consolidated Financial Statements Consolidated Statements of Financial Condition...
More informationHOME LOAN FINANCIAL CORPORATION Coshocton, Ohio. ANNUAL REPORT June 30, 2013
Coshocton, Ohio ANNUAL REPORT June 30, 2013 ANNUAL REPORT June 30, 2013 CONTENTS LETTER TO SHAREHOLDERS... 2 INDEPENDENT AUDITOR S REPORT... 3 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets...
More informationThe Untold Costs of Subprime Lending: Communities of Color in California. Carolina Reid. Federal Reserve Bank of San Francisco.
The Untold Costs of Subprime Lending: The Impacts of Foreclosure on Communities of Color in California Carolina Reid Federal Reserve Bank of San Francisco April 10, 2009 The views expressed herein are
More informationHow the Proposed Current Expected Credit Loss (CECL) Rule Will Affect your Allowance for Loan and Lease Losses
How the Proposed Current Expected Credit Loss (CECL) Rule Will Affect your Allowance for Loan and Lease Losses Presented by Wilary Winn Brenda Lidke, Director September 22, 2014 1 Topics Covered Proposed
More informationPresident s Letter to Shareholders Independent Auditor s Report Consolidated Balance Sheets as of June 30, 2016 and
2016 ANNUAL REPORT TABLE OF CONTENTS Page President s Letter to Shareholders... 1 Independent Auditor s Report... 2 Consolidated Balance Sheets as of... 3 Consolidated Statements of Income for the years
More informationSTATE DEPARTMENT FEDERAL CREDIT UNION
FINANCIAL STATEMENTS (With Independent Auditor s Report Thereon) TABLE OF CONTENTS Page INDEPENDENT AUDITOR S REPORT... 1 FINANCIAL STATEMENTS Statements of Financial Condition... 3 Statements of Income...
More informationHow CECL Will Impact Your Credit Union & What You Can Do to Prepare For It. Randy C Thompson, Ph.D. TCT Risk Solutions, LLC
Attitude The longer I live, the more I realize the impact of attitude on life. Attitude to me, is more important than facts. It is more important than the past, than education, than money, than circumstances,
More informationThe CECL Workshop Series. CECL Finalization & Methodologies
The CECL Workshop Series. CECL Finalization & Methodologies June 7, 2016 P R E S E N T E D B Y Todd Sprang CliftonLarsonAllen Tom Danielson CliftonLarsonAllen Tim McPeak Sageworks About the Webinar. Ask
More informationFIRST BANK OF KENTUCKY CORPORATION Maysville, Kentucky. CONSOLIDATED FINANCIAL STATEMENTS December 31, 2016 and 2015
Maysville, Kentucky CONSOLIDATED FINANCIAL STATEMENTS Maysville, Kentucky CONSOLIDATED FINANCIAL STATEMENTS CONTENTS INDEPENDENT AUDITOR S REPORT... 1 FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS...
More informationMonona Bankshares, Inc. and Subsidiary Monona, Wisconsin. Consolidated Financial Statements Years Ended December 31, 2017 and 2016
Monona, Wisconsin Consolidated Financial Statements Years Ended December 31, 2017 and 2016 Years Ended December 31, 2017 and 2016 Table of Contents Independent Auditor's Report... 1 Consolidated Financial
More informationJumbo Non-Conforming Products (Series-49)
Jumbo Non-Conforming Products (Series-49) This guide provides parameters for standard fixed rate and 5/1, 7/1, and 10/1 adjustable rate, fully amortizing, nonconforming products for primary residence up
More informationOffice of Credit Risk Management Risk Management and RBR Redevelopment Overview
Office of Credit Risk Management Risk Management and RBR Redevelopment Overview Presentation for the Western Pennsylvania Association of SBA-Guaranteed Lenders Small Business Lending Conference Seven Springs,
More informationOverview and Motivation Behind Government Sponsored Enterprise Credit Risk Transfer
Overview and Motivation Behind Government Sponsored Enterprise Credit Risk Transfer CAS 2016 Annual Meeting Presented by Ben Walker, FCAS, MAAA Prepared by Overview of U.S. Mortgage Loan Origination Process
More informationMST Loan Loss Analyzer Platform for CECL
MST Loan Loss Analyzer Platform for CECL MST empowers financial institutions with confidence in their allowance estimations and transition to CECL through innovative software solutions, advisory services,
More informationIFRS 9 Readiness for Credit Unions
IFRS 9 Readiness for Credit Unions Impairment Implementation Guide June 2017 IFRS READINESS FOR CREDIT UNIONS This document is prepared based on Standards issued by the International Accounting Standards
More informationFourth Quarter 2018 Earnings Call FEBRUARY 7, 2019
Fourth Quarter 2018 Earnings Call FEBRUARY 7, 2019 Safe Harbor Statement FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the safe harbor provisions
More informationCredit Performance Scorecard White Paper. (2016 Scorecard Updates, version 4.1) November Fannie Mae
Credit Performance Scorecard White Paper (2016 Scorecard Updates, version 4.1) November 2015 2011-2015 Fannie Mae Table of Contents About This Document... 3 STAR Introduction... 4 General Servicing Metric
More information