CECL Workshop Discounted Cash Flow Method
|
|
- Madison Hart
- 6 years ago
- Views:
Transcription
1 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.
2 Introduction Martin Caine, CPA Member of the Firm, Wolf & Company, P.C Voice: (413) LinkedIn: martin-caine Alan Lloyd, CPA Senior Audit Manager, Wolf & Company, P.C. Voice: (215) LinkedIn: alan-lloyd 2
3 Agenda Discounted Cash Flow Model Key concepts and inputs Pros and cons Sample DCF model review Q&A 3
4 Key Concepts and Inputs From ASC : If an entity estimates expected credit losses using methods that project future principal and interest cash flows (that is, a discounted cash flow method), the entity shall discount expected cash flows at the financial asset s effective interest rate. When a discounted cash flow method is applied, the allowance for credit losses shall reflect the difference between the amortized cost basis and the present value of the expected cash flows. 4
5 Key Concepts and Inputs For variable rate loans benchmarked to an index: Projections of changes in the factor (e.g LIBOR, prime rate, etc.) shall not be made for purposes of determining the effective interest rate or estimating expected future cash flows. 5
6 Key Concepts and Inputs From ASC : An entity shall consider estimated prepayments in the future principal and interest cash flows when utilizing a method in accordance with paragraph (DCF). An entity shall not extend the contractual term for expected extensions, renewals, and modifications unless it has a reasonable expectation at the reporting date that it will execute a troubled debt restructuring with the borrower. 6
7 Key Concepts and Inputs Information that can be used: Internal, external or combination of both related to past events, current conditions, and reasonable, supportable forecasts Consider quantitative and qualitative factors in the environment Not required to search for all possible information that is not readily available without undue cost and effort 7
8 Key Concepts and Inputs Collateral-dependent loans: Regardless of the initial measurement method, an entity shall measure expected credit losses based on the fair value of the collateral when the entity determines that foreclosure is probable. An entity also shall consider any credit enhancements that are applicable to the financial asset when recording the allowance for credit losses. 8
9 Key Concepts and Inputs Changes in present value over reporting periods: May result not only from the passage of time but also from changes in estimates of the timing or amount of expected future cash flows. DCF users are permitted to report the entire change in present value as credit loss expense (or reversal of credit loss expense). Alternatively, an entity may report the change in present value attributable to the passage of time as interest income. 9
10 Key Concepts and Inputs Key Inputs: Loan Data: Loan number Unpaid principal balance (UPB), Book Balance Payment amount Maturity Date Segment Information (e.g. call code, product code, geography, risk rating, FICO scores, etc.) Payment structure Revolving status Available credit balances Government guarantee info Participation information, etc. 10
11 Key Concepts and Inputs Key Inputs: Assumptions: Prepayment rate (Conditional Prepayment Rate (CPR), Single Monthly Mortality (SMM)) Expected default rates Expected loss rates Timing to recovery 11
12 Key Concepts and Inputs Example SMM calculation that can be translated to CPR: TOTALS 25,376,213 11,933,614 76,169, % 13.85% Month Beginning Balance Contractual Payment Contractual Principal Contractual Interest Ending Balance Actual Payments Collected SMM CPR 1 300,000,000 3,109,152 1,984,152 1,125, ,846,416 6,153, % 11.6% 2 293,846,416 3,109,152 2,007,228 1,101, ,436,704 6,409, % 12.7% 3 287,436,704 3,109,152 2,031,265 1,077, ,918,095 6,518, % 13.4% 4 280,918,095 3,109,152 2,055,709 1,053, ,738,317 6,179, % 12.4% 5 274,738,317 3,109,152 2,078,884 1,030, ,315,888 6,422, % 13.6% 6 268,315,888 3,109,152 2,102,968 1,006, ,007,906 6,307, % 13.5% 7 262,007,906 3,109,152 2,126, , ,773,425 6,234, % 13.5% 8 255,773,425 3,109,152 2,150, , ,455,112 6,318, % 14.1% 9 249,455,112 3,109,152 2,173, , ,977,159 6,477, % 15.1% ,977,159 3,109,152 2,197, , ,575,062 6,402, % 15.2% ,575,062 3,109,152 2,221, , ,252,965 6,322, % 15.2% ,252,965 3,109,152 2,245, , ,830,298 6,422, % 16.0% 12
13 Pros & Cons Pros Less historical data required Works well for amortizing loans, balloons, fixed P&I, etc. Can be easily leveraged for other areas (e.g. Stress-testing, pricing, fair value calculations, etc.) Cons Significant amount of computational power required Does not work well for revolving loans Not as practical as some other models such as historical loss and vintage Useful if lack of loss history Back-testing to support and fine-tune assumptions Go-forward analysis instead of historical 13
14 Sample DCF Model Review - Mortgage Excerpt from model for single mortgage loan: TOTALS 99,858 55, ,549 18,592 2,789 15, ,918 Month Beginning Balance Contractual Payment Principal Interest Prepayment Defaulted Principal Estimated Loss Estimated Recovery Ending Balance Cash Flows 1 275,000 1, ,030 2, ,723 3, ,723 1, ,018 2, ,468 3, ,468 1, ,005 2, ,236 3, ,236 1, , ,026 3, ,026 1, , ,839 3, ,839 1, , ,673 3, ,673 1, , ,529 3, ,529 1, , ,407 3, ,407 1, , ,307 3, ,307 1, , ,228 3, ,228 1, , ,170 3, ,170 1, , ,133 3, ,133 1, , ,117 3, ,771 1,393 1, ,373 1, ,373 1,393 1, ,
15 Sample DCF Model Review - Mortgage Assumptions and Other Data Used for single mortgage loan: ASSUMPTIONS & INPUTS DATA & OUTPUTS Contractual Rate (INPUT) 4.50% GL Bal ance 275,000 CPR 12.00% PV of Cas h Fl ows 272,010 Months to Maturi ty (INPUT) 360 Es ti mated CECL DCF Res erve 2,990 Annual Defaul t Rate 1.50% Res erve to Carryi ng Bal ance 1.09% Loss Rate (% of Default Amt) 15% Recovery Rate (% of Default Amt) 85% Loss to Carry Balance per Est. Loss 1.01% Months to Recovery 10 Expected Pri nci pal Defaul t 6.76% NOTE: Assumptions would require qualitative adjustments for reasonable, supportable forecasts (e.g. if rates have moved up substantially in recent months, then prepayment speed (CPR) may need to be decreased). 15
16 Excerpt from model for pool: Sample DCF Model Review - Pool TOTALS 169,479,009 35,934, ,727,983 12,793,007 1,535,161 11,257, ,399,312 Month Beginning Balance Contractual Payment Principal Interest Prepayment Defaulted Principal Estimated Loss Estimated Recovery Ending Balance Cash Flows 1 300,000,000 3,109,152 1,585,652 1,123,500 3,727, ,000 48, ,287,177 6,436, ,287,177 3,109,152 1,614,664 1,102,105 3,655, ,383 47, ,624,674 6,372, ,624,674 3,109,152 1,643,420 1,080,899 3,584, ,833 46, ,012,048 6,308, ,012,048 3,109,152 1,671,923 1,059,880 3,513, ,349 45, ,448,860 6,245, ,448,860 3,109,152 1,700,174 1,039,046 3,444, ,932 44, ,934,675 6,183, ,934,675 3,109,152 1,728,177 1,018,395 3,374, ,580 43, ,469,061 6,121, ,469,061 3,109,152 1,755, ,927 3,306, ,292 42, ,051,590 6,060, ,051,590 3,109,152 1,783, ,638 3,238, ,069 41, ,681,837 5,999, ,681,837 3,109,152 1,810, ,528 3,170, ,909 40, ,359,384 5,939, ,359,384 3,109,152 1,837, ,596 3,104, ,813 40, ,083,812 5,879, ,083,812 3,109,152 1,864, ,839 3,037, ,778 39, , ,854,709 6,172, ,854,709 3,109,152 1,891, ,256 2,972, ,806 38, , ,671,667 6,106, ,671,667 3,109,152 1,917, ,845 2,907, ,896 37, , ,534,278 6,041, ,666,330 3,109,152 3,090,533 13,730 7,192 4, , ,717 3,153, ,717 3,109, ,717 2, , , ,614-34,614 16
17 Sample DCF Model Review - Pool Assumptions and Other Data Used at pool level: ASSUMPTIONS & INPUTS DATA & OUTPUTS Contractual Rate (INPUT) 4.50% GL Bal ance 300,000,000 CPR 14.00% PV of Cas h Fl ows 298,163,136 Average Li fe to Maturi ty (INPUT) 120 Es ti mated CECL DCF Res erve 1,836,864 Annual Defaul t Rate 1.60% Res erve to Carryi ng Bal ance 0.61% Loss Rate (% of Default Amt) 12% Recovery Rate (% of Default Amt) 88% Loss to Carry Balance per Est. Loss 0.51% Months to Recovery 10 Expected Pri nci pal Defaul t 4.26% NOTE: Assumptions would require qualitative adjustments for reasonable, supportable forecasts (e.g. if rates have moved up substantially in recent months, then prepayment speed (CPR) may need to be decreased). 17
18 Sample DCF Model Review Discussion points 1. Any concerns with the complexity? 2. Any concerns with the required assumptions? 3. How can this analysis be improved? 3. Does anyone plan to use a DCF model for CECL? 18
19 Thank You Martin Caine, CPA Member of the Firm, Wolf & Company, P.C. Voice: (413) LinkedIn: martin-caine Alan Lloyd, CPA Senior Manager, Wolf & Company, P.C. Voice: (215) LinkedIn: alan-lloyd 19
CECL Workshop Vintage Method
CECL Workshop Vintage Method John J. Doherty, CPA MEMBER OF ALLINIAL GLOBAL, AN ASSOCIATION OF LEGALLY INDEPENDENT FIRMS 2017 Wolf & Company, P.C. Introduction John J. Doherty Member of the Firm jdoherty@wolfandco.com
More informationCELC 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 for Commercial Entities
CECL for Commercial Entities St. Louis, MO April 12, 2018 With You Today: Anthony Burzinski Managing Director Accounting Advisory Services KPMG LLP aburzinski@kpmg.com Alan Kuska Director Accounting Advisory
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 informationTechnical Line FASB final guidance
No. 2018-09 4 October 2018 Technical Line FASB final guidance What s changing under the new standard on credit losses? In this issue: Overview... 1 Key considerations... 2 Effective date and transition...
More informationFirst Quarter 2017 Earnings Call MAY 4, 2017
First Quarter 2017 Earnings Call MAY 4, 2017 Safe Harbor Statement FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the safe harbor provisions of the
More informationCredit impairment under ASC 326
Financial reporting developments A comprehensive guide Credit impairment under ASC 326 Recognizing credit losses on financial assets measured at amortized cost, AFS debt securities and certain beneficial
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 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 informationCECL guidebook. AN INTRODUCTION TO THE FASB FINANCIAL INSTRUMENTS CREDIT LOSS MODEL September 2016
CECL guidebook. AN INTRODUCTION TO THE FASB FINANCIAL INSTRUMENTS CREDIT LOSS MODEL September 2016 Table of contents BACKGROUND 1 FINANCIAL ASSETS MEASURED AT AMORTIZED COST AND ON LEASES 3 PURCHASED FINANCIAL
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 informationAgenda. CECL Where are we and how did we get here? What is FASB s Expected Credit Loss Model? Expected Credit Loss Models - Challenges.
The CECL Model Agenda CECL Where are we and how did we get here? What is FASB s Expected Credit Loss Model? Expected Credit Loss Models - Challenges blank 2 Background Financial Crisis with credit as a
More informationCECL WHY IT S A BIG DEAL AND WHAT YOU NEED TO KNOW TO FULFILL YOUR OVERSIGHT ROLE. New Jersey Bankers Association Annual Conference May 2017
CECL WHY IT S A BIG DEAL AND WHAT YOU NEED TO KNOW TO FULFILL YOUR OVERSIGHT ROLE New Jersey Bankers Association Annual Conference May 2017 1 TODAY S PRESENTERS Faye Miller Partner, National Professional
More informationWebinar: Latest Developments on CECL and Upcoming Changes to the Allowance for Credit Losses. September 8, 2016
Webinar: Latest Developments on CECL and Upcoming Changes to the Allowance for Credit Losses September 8, 2016 An Introduction CECL What s Changing? What s not Changing? Acceptable Methods Myths vs Facts
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 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 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 informationCECL TRG Issue Log November 2018
The Financial Accounting Standards Board (FASB) established the Transition Resource Group (TRG) for Credit Losses to inform the board about issues that arise as entities implement the new credit impairment
More informationCECL Initial and Subsequent Measurement A Practical Approach
CECL Initial and Subsequent Measurement A Practical Approach June 8, 2017 Neekis Hammond, CPA Principal - Advisory Services 1 Loan portfolio and risk management solutions More than 1,000 financial institution
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 informationCECL Time to Start Will Neeriemer, Partner DHG Financial Services. financial services
CECL Time to Start Will Neeriemer, Partner DHG Financial Services 1 About DHG DHG Financial Services, a national practice of Dixon Hughes Goodman, focuses on publicly traded and privately-held financial
More informationCECL TRG Issue Log November 2018
The Financial Accounting Standards Board (FASB) established the Transition Resource Group (TRG) for Credit Losses to inform the board about issues that arise as entities implement the new credit impairment
More informationTechnical Line FASB final guidance
No. 2016-24 12 October 2016 Technical Line FASB final guidance A closer look at the new credit impairment standard All entities will need to change the way they recognize and measure impairment of financial
More informationSageworks Advisory Services PRACTICAL CECL TRANSITION GUIDANCE SUMMARY
Sageworks Advisory Services PRACTICAL CECL TRANSITION GUIDANCE SUMMARY Use of this content constitutes acceptance of the license terms incorporated at https://www./cecl-transition-content-license/. This
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 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 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 informationCECL Initial and Subsequent Measurement
CECL Initial and Subsequent Measurement About the Presenter Neekis Hammond, CPA Advisory Services www.sageworks.com Implementation Timelines. 1. SEC Filing Institutions. Implementation Timelines. 2. Non-SEC
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 informationSecond Quarter 2018 Earnings Call AUGUST 8, 2018
Second Quarter 2018 Earnings Call AUGUST 8, 2018 Safe Harbor Statement FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the safe harbor provisions
More informationFINANCIAL INSTRUMENTS: IN-DEPTH ANALYSIS OF NEW STANDARD ON CREDIT LOSSES
FINANCIAL INSTRUMENTS: IN-DEPTH ANALYSIS OF NEW STANDARD ON CREDIT LOSSES Prepared by: Faye Miller, Partner, National Professional Standards Group, RSM US LLP faye.miller@rsmus.com, +1 410 246 9194 Mike
More informationCECL Current Expected Credit Losses
2016 Annual Risk Management Conference CECL Current Expected Credit Losses Matt Esposito, Assistant Director November 14, 2016 The views expressed in this presentation are those of the presenter. Official
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 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 informationOverview of ASC (CECL)
Overview of ASC 326-20 (CECL) FASB Accounting Standards Update (ASU) 2016-13, Financial Instruments Credit Losses Topic 326 was approved in June 2016. FASB replaced the current incurred loss accounting
More informationKBW Mortgage Finance Conference. June 1, 2016
KBW Mortgage Finance Conference June 1, 2016 Safe Harbor Statement F O R W A R D - L O O K I N G S T A T E M ENTS This presentation includes forward-looking statements within the meaning of the safe harbor
More informationAccounting for Financial Instruments Impairment Current Expected Credit Losses ( CECL ) By Candy Wright & Vincent Milano, P&N
The Unique Alternative to the Big Four Accounting for Financial Instruments Impairment Current Expected Credit Losses ( CECL ) By Candy Wright & Vincent Milano, P&N Presentation Agenda Project Status Current
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 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 Current technical developments Part II
CECL Current technical developments Part II Current Developments in FASB s Current Expected Credit Loss Model December 11, 2018 We will be starting soon Please disable pop-up blocking software before viewing
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 informationThe Presenter. Charles N. McQueen. Founded McQueen Financial in 1999 SEC Registered Investment Advisor Asset Liability Management.
CECL The Presenter Charles N. McQueen Founded McQueen Financial in 1999 SEC Registered Investment Advisor Asset Liability Management Page 2 McQueen Financial Advisors SEC Registered Investment Advisor
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 informationNew Developments Summary
July 10, 2018 NDS 2018-08 New Developments Summary Transition Resource Group for Credit Losses Summary of issues as of June 11, 2018 Summary On June 11, 2018, the Transition Resource Group for Credit Losses
More informationSageworks Advisory Services PRACTICAL CECL TRANSITION DISCOUNTED CASH FLOW (DCF)
Sageworks Advisory Services PRACTICAL CECL TRANSITION DISCOUNTED CASH FLOW (DCF) Use of this content constitutes acceptance of the license terms incorporated at https://www./cecl-transition-content-license/.
More informationROLL WITH CONFIDENCE. What You Need to Know About CECL: REAL ANSWERS, REAL GUIDANCE. Tracy Harding, CPA Rob Smalley, CPA
ROLL WITH CONFIDENCE What You Need to Know About CECL: REAL ANSWERS, REAL GUIDANCE Tracy Harding, CPA Rob Smalley, CPA Agenda CECL Overview Example (yes a real example with numbers!) Acquisitions Process
More informationSecond Quarter 2018 Investor Presentation
Second Quarter 2018 Investor Presentation 1 Safe Harbor Statement FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the safe harbor provisions of the
More informationTechnical Line FASB final guidance
No. 2017-09 16 March 2017 Technical Line FASB final guidance How the new credit impairment standard will affect entities outside the financial services industry In this issue: Overview... 1 Key considerations...
More informationCECL and PayNet Absolute Expected Loss
CECL and PayNet Absolute Expected Loss Taking the Risk Out of Small Business Lending How Much Is THIS Going to Cost? (and Turning Lemons into Lemonade) www.paynet.com 2017 PayNet Inc. PayNet and PayNet
More informationCECL An Analysis of the April 2016 CECL Draft Presented to the Transition Resource Group
CECL An Analysis of the April 2016 CECL Draft Presented to the Transition Resource Group By Randal Rabe Director at Credit Risk Management Analytics, LLC CECL An Analysis of the April 2016 CECL Draft Presented
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 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 informationContrasting the new US GAAP and IFRS credit impairment models
Contrasting the new and credit impairment models A comparison of the requirements of ASC 326 and 9 No. US2017-24 September 26, 2017 What s inside: Background....1 Overview......1 Key areas....2 Scope......2
More informationCredit impairment. Handbook US GAAP. March kpmg.com/us/frv
Credit impairment Handbook US GAAP March 2018 kpmg.com/us/frv Contents Foreword... 1 About this publication... 2 1. Executive summary... 4 Subtopic 326-20 2. Scope of Subtopic 326-20... 14 3. Recognition
More informationFINC 2400 PERSONAL FINANCE SPRING 2018 CHAPTER 7. Part 1: ABOUT LOANS AND LOAN TYPES
FINC 2400 PERSONAL FINANCE SPRING 2018 CHAPTER 7 Part 1: ABOUT LOANS AND LOAN TYPES Sven Thommesen 2018 1 THE ESSENCE OF CREDIT The lender provides you with a sum of money today: the loan. You promise
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 informationAccounting Update. John Rieger, Deputy Chief Accountant, Federal Deposit Insurance Corporation, Washington, DC
A Regulatory Update John Rieger, Deputy Chief Accountant, Federal Deposit Insurance Corporation, Washington, DC Caren Hill, CPA, Western District, Office of the Comptroller of the Currency, Denver CO Tullus
More informationCECL Webinar Series: The Roadmap to Success. Glenn Levine, Associate Director David Fieldhouse, Director
CECL Webinar Series: The Roadmap to Success Glenn Levine, Associate Director David Fieldhouse, Director September 6, 2017 Moody s Analytics CECL Webinar Series: The Roadmap to Success TODAY Lifetime Expected
More informationThe Journey to Implementation Continues
POINT OF VIEW The Journey to Implementation Continues Shifting from an Incurred Loss to an Expected Loss Model Current Expected Credit Loss (CECL) is a new accounting standard that will replace ASC 450-20
More informationHarley-Davidson, Inc. (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
More informationCurrent Expected Credit Losses (CECL) for Mortgage Banking
Current Expected Credit Losses (CECL) for Mortgage Banking November 15, 2017 Presented by: Matthew Streadbeck, Partner, Ernst & Young LLP Carrie Kennedy, Partner, Moss Adams, LLP Jonathan Prejean, Managing
More informationCONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS UNITED NATIONS FEDERAL CREDIT UNION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS UNITED NATIONS FEDERAL CREDIT UNION AND SUBSIDIARIES C O N T E N T S Page Report of Independent Certified Public
More informationAccounting for Financial Instruments
Accounting for Financial Instruments Summary of Decisions Reached to Date During Redeliberations As of October 31, 2012 The Summary of Decisions Reached to Date is provided for the information and convenience
More informationMemo No. 1. Meeting Date(s) TRG Meeting, June 12, Discounting Expected Cash Flows Using an Entity s Effective Interest Rate
Memo No. 1 MEMO Issue Date May 31, 2017 Meeting Date(s) TRG Meeting, June 12, 2017 Contact(s) Emily De Revere Lead Author Ext. 468 Shayne Kuhaneck Project Lead Ext. 386 Matt Esposito Assistant Director
More informationACCOUNTING STANDARDS UPDATE
ACCOUNTING STANDARDS UPDATE Gordon J. Dobner, CPA, Partner BKD, LLP gdobner@bkd.com 713-499-4605 Objectives: 1. Review significant upcoming new accounting standards 2. Examine the level of potential impact
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 informationCECL IMPLEMENTATION. Practical implementation and operational considerations of the CECL model for Credit Unions
CECL IMPLEMENTATION Practical implementation and operational considerations of the CECL model for Credit Unions #AICPAcu 'Where data are sparse, competing ideas abound that are clever and wishful. Neil
More informationThe CECL Model: Update and Implementation Considerations. Steve Merriett Deputy Associate Director and Chief Accountant Board of Governors
The CECL Model: Update and Implementation Considerations Steve Merriett Deputy Associate Director and Chief Accountant Board of Governors 2 Disclaimer The opinions expressed in these presentations are
More informationNote 4: Loans and Allowance for Credit Losses
Note 4: Loans and Allowance for Credit Losses Loans are initially measured at fair value plus directly attributable costs, and are subsequently measured at amortized cost using the effective interest method.
More informationBuying On LoanStreet
Buying On LoanStreet Molly Snody Director in Marketing and Business Development Molly.Snody@Loan-Street.com 717-896-8466 www.loan-street.com Background & Bio LoanStreet, Inc is an innovative loan participation
More informationTrends in the interest rate environment and new Accounting Standards Update for ASC 815 (ASU )
Trends in the interest rate environment and new Accounting Standards Update for ASC 815 (ASU 2017 12) Tim Potter, CPA Hedge Accounting Manager Craig Haymaker, CPA Chief Operating Officer Agenda Introductions
More informationTrey Turnage, CPA Gordon Dobner, CPA
CECL Breaking Down the Final Standard July 27, 2016 Trey Turnage, CPA Partner tturnage@bkd.com Gordon Dobner, CPA Director gdobner@bkd.com 1 TO RECEIVE CPE CREDIT Participate in entire webinar Answer polls
More informationAudit Tax Advisory Risk Performance Crowe Horwath LLP 1
PACB Annual Convention FASB s Current Expected Credit Loss (CECL) Model: Navigating the Changes September 28, 2015 Matthew Schell, Partner Crowe Horwath LLP Washington, DC 2015 Crowe Horwath LLP 1 Agenda
More informationDefining Issues. FASB Accelerates Recognition of Credit Losses. June 2016, No Key Facts. Key Impacts
Defining Issues June 2016, No. 16-23 FASB Accelerates Recognition of Credit Losses The FASB s new credit impairment standard will significantly change the way entities recognize impairment of financial
More informationCredit Suisse Financial Services Forum. Februar y 9, 2016
Credit Suisse Financial Services Forum Februar y 9, 2016 Safe Harbor Statement F O R W A R D - L O O K I N G S T A T E M EN T S This presentation includes forward-looking statements within the meaning
More informationAccounting for Credit Union Mergers
ADVICE TO STRENGTHEN FINANCIAL INSTITUTIONS Released December 2016 Version 3 Credit unions historically accounted for mergers under the pooling of interest method. The accounting was relatively straightforward
More informationLong Beach Mortgage Loan Trust
External Parties Seller Long Beach Mortgage Servicer(s) JPMorgan Chase Bank,NA Underwriter(s) Deutsche Banc Alex Brown Table of Contents Page 1. Certificate Payment Report 2 2. Collection Account Report
More informationMBT BANCSHARES, INC. AND SUBSIDIARY DECEMBER 31, 2018 AND 2017 METAIRIE, LOUISIANA
MBT BANCSHARES, INC. AND SUBSIDIARY DECEMBER 31, 2018 AND 2017 METAIRIE, LOUISIANA TABLE OF CONTENTS Audited Financial Statements: Independent Auditor s Report Page 1-2 Consolidated Balance Sheets 3 Consolidated
More informationUNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 10-Q
(Mark One) x UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly
More informationLookout: Accounting & Auditing Outlook
Lookout: Accounting & Auditing Outlook Joshua Partlow and David White March 8, 2016 Speaker Introduction 2 Panelists Joshua Partlow, CPA Audit Partner Johnson Lambert LLP David White, CPA, ACI VP & Regional
More informationJMCPAS. Red Rocks Credit Union. Report on Audit of Financial Statements. for the years ended December 31, 2017 and Certified Public Accountants
JMCPAS Red Rocks Credit Union Report on Audit of Financial Statements for the years ended and 2016 J o n e s M e r t s c h i n g Certified Public Accountants CONTENTS Page Independent Auditors' Report
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 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 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 informationFASB's new credit impairment model: At a loss for what to do The Dbriefs Financial Executives series
FASB's new credit impairment model: At a loss for what to do The Dbriefs Financial Executives series Bob Uhl, Partner, Deloitte & Touche LLP Jon Howard, Partner, Deloitte & Touche LLP Jonathan Prejean,
More informationHarley-Davidson, Inc. (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
More informationFreddie Mac Mortgage-Backed Securities Disclosures: Overview of Changes between Legacy and the Single Security Initiative Aligned Files
Freddie Mac Mortgage-Backed Securities Disclosures: Overview of Changes between and the Single Security Initiative Files August 2017, Version 3 Objective On August 28, 2017, Freddie Mac will begin generating
More informationFASB Insurance Contracts
GAAP and SEC Update FASB Insurance Contracts FASB Initiatives Short-Duration Contracts (Final Standard ASU 2015-09 Issued May 2015) Long-Duration Contracts (Beginning) Focused efforts on targeted improvements
More informationSingle Family Loan-Level Dataset Summary Statistics March 2018
Single Family Loan-Level Dataset Summary Statistics March 2018 Freddie Mac 2015 Freddie Mac - Single Family Loan-Level Dataset March 2018 Page 1 of 16 Background Freddie Mac is making the Single Family
More informationHarley-Davidson, Inc. (Exact name of registrant as specified in its charter)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
More informationTroubled Debt Restructurings
Troubled Debt Restructurings Financial Reporting Application & Accounting Abby Wegner, Director of Financial Reporting Sheila Earp, Senior Financial Reporting Analyst Joel Erickson, Financial Reporting
More informationEuropean DataWarehouse
European DataWarehouse Due Corporate Diligence Presentation using ED Cloud October Pro 2014 Webinar November 2016 Draft European Framework for Simple, Transparent and Standardised Securitisation (STS)
More informationNew Developments Summary
October 31, 2017 NDS 2017-07 New Developments Summary Transition Resource Group for Credit Losses Summary of issues as of October 6, 2017 Summary On June 12, 2017, the Transition Resource Group for Credit
More informationNavigating a sea change US Current Expected Credit Losses (CECL) survey
Navigating a sea change US Current Expected Credit Losses (CECL) survey Foreword...1 Executive summary...2 Introduction...4 About the survey...5 A comprehensive CECL program...6 Implementation timetable
More informationThird Quarter 2018 Investor Presentation
Third Quarter 2018 Investor Presentation November 7, 2018 Legal Disclaimer FORWARD-LOOKING STATEMENTS. Certain statements in this presentation may constitute forward-looking statements within the meaning
More informationUNITI FINANCIAL CORPORATION AND SUBSIDIARY CONSOLIDATED FINANCIAL STATEMENTS WITH INDEPENDENT AUDITOR'S REPORT DECEMBER 31, 2016 AND 2015
CONSOLIDATED FINANCIAL STATEMENTS WITH INDEPENDENT AUDITOR'S REPORT CONTENTS INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS 1 FINANCIAL STATEMENTS Consolidated Balance Sheets 2 Consolidated Statements
More informationJoshua Stein Vice President Accounting and Financial Management December 19, 2018
Joshua Stein Vice President Accounting and Financial Management 202-663-5318 Russell G. Golden Chairman Financial Accounting Standards Board 401 Merritt 7 P.O. Box 5116 Norwalk, CT 06856-5116 Via email:
More informationSTATIC POOL INFORMATION FOR PRIOR SECURITIZED POOLS OF SALLIE MAE BANK PRIVATE EDUCATION LOANS
STATIC POOL INFORMATION FOR PRIOR SECURITIZED POOLS OF SALLIE MAE BANK PRIVATE EDUCATION LOANS This report presents static pool information about Sallie Mae Bank s (the Sponsor s ) private education loan
More informationFixed Income SPPI Solution Methodology and Delivery
Fixed Income SPPI Solution Methodology and Delivery April 2018 Introduction David Berbner, Thomson Reuters, Head of Financial Markets & Regulation Continental Europe Heading the financial and regulatory
More information