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CFT
Webinars are purely educational. Instructors are not permitted to sell any
products or services during the presentation.
Program
Content:
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 major portion of credit administration and is
considered a key factor in maintaining a safe and sound financial
institution. It is a valuation reserve established and maintained by
charges against the bank’s operating income and is estimate of loans that
may be uncollectible.
However,
users of financial statement issued by financial institution expressed
concerns that current United States Generally Acceptable Accounting
Principles (GAAP) calculation of the Allowance restricts the ability to
record credit losses that are expected, because they do not meet the
“probable” threshold. After the economic crisis, various stakeholders
requested that accounting standards enhance standards on loan loss provisioning
to incorporate forward-looking information. The Financial Accounting
Standards Board concluded that the existing approach for determining the
impairment of financial assets, based on a “probable” threshold and an
“incurred” notion, delayed the recognition of credit losses on loans and
resulted in loan loss allowances that were “too little, too late.”
The
Board of Governors of the Federal Reserve System (FRB), the Federal Deposit
Insurance Corporation (FDIC), the National Credit Union Administration
(NCUA), and the Office of the Comptroller of the Currency (OCC) (hereafter,
the agencies) issued a Joint Statement on June 17, 2016, called Current
Expected Credit Losses (“CECL”), which summarizes key elements of the new
accounting standard and providing initial supervisory views with respect to
measurement methods, use of vendors, portfolio segmentation, data needs,
qualitative adjustments, and allowance processes.
CECL
standards apply to all banks, savings associations, credit unions and
financial institution holding companies, regardless of size that file
regulatory reports for which the reporting requirements conform to U.S.
GAAP. This program is designed to review the elements and thought process
in establishing and maintaining an adequate ALLL level under the new
regulatory guidance referred to as CECL.
Covered
Topics:
- Types of Financial Instruments carried at Amortized
Cost affected by CECL and the Financial Instruments Not Affected
- How CECL Addresses Major Concerns with the Current
(“ALLL”) Methodology, which has Proven to be Ineffective in
Recognizing Losses on a Timely Basis
- Effective Dates of CECL Implementation based upon
the Type and Size of the Financial Institution
- How Should an Institution Apply the New Accounting
Standard Upon Initial Adoption
- Acceptable Methods for Estimating Allowance Levels
Under CECL?
- What Can Financial Institutions Do Now to Prepare
for the Adoption of CECL
- Reinforce Concepts with a CECL Case Study
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 under the CECL Methodology.
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. Please
forward email to appropriate person(s).
Instructor:
Jeffery
Johnson started his career
with SunTrust Bank in Atlanta as a Management Trainee and progressed to
Vice President and Senior Lender of SouthTrust Bank and Senior Vice President
and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.
Most of his career has been spent in Credit Administration, Lending,
Business Development, Loan Review, Management and Training &
Development. He has managed loan portfolios representing a cross section of
loan types including: Large Corporate, High Net Worth Individual, Middle
Market Companies, Small Business, Real Estate and Non-Profit Organizations.
Mr. Johnson is now a training professional in the financial industry by leading
various seminars covering important topics relating to issues in financial
institutions. He teaches actively for fifteen state banking associations in
the United States, Risk Management Association (RMA) and individual
financial institutions nationwide. He co-authored a training course
entitled "Lending to Service and Other Professional
Organizations" for RMA in 2001. Mr. Johnson earned a B.A. Degree in
Accounting from Morehouse College in Atlanta; a MBA in Finance from John
Carroll University in University Heights, Ohio; Banking diploma from
Prochnow School of Banking at the University of Wisconsin and a Graduate
Certificate in Bank Management from the Wharton School of Business at the
University of Pennsylvania.
What
Is A Webinar?:
A
webinar combines the clarity of an audio teleconference with the
interactivity and visual presentation of the internet. All you need to
participate is a telephone and an internet connection. Even if you don't
have an internet connection, you can still participate in the audio
session. Listening to the program over the telephone and following the
written materials is an effective alternative!
Unable
To Attend?:
No
problem. You can purchase a recording of the webinar for future use. You
can choose from either an On-Demand Web Link (Good for 6 months from the
webinar date, unlimited use) or a CD-ROM (includes a paper copy of the
PowerPoint slides).
Viewing
Options (all options include applicable handouts):
All
options include applicable handouts. You can choose to pay by credit card
or be billed. Additional Live Webinar connections are $75 each.
Option 1: Live
Webinar and 7 Days OnDemand Video Playback - $265
Option 2:
OnDemand Video (six months access) - $295
Option 3: Live
and 6 Months of OnDemand Video - $365
Option 4: CD-ROM
Video (Includes OnDemand Video) - $345
Option 5: Entire
Package (all of the above) - $395
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