Attendees Comment on RMA-MST ALLL Workshops

Concerned about the impact of CECL on your allowance and institution? 
Looking for new approaches to estimate your allowance? 

The Risk Management Association (RMA) and MST are collaborating on a series of workshops designed to help bankers get and stay ahead of the allowance for loan and lease losses (ALLL) curve. Recently completed workshops in Charlotte on the East Coast and San Francisco on the West Coast have won high marks from attending bankers for their content and the opportunities they present for sharing challenges and exchanging practice improvement ideas. 

Presenters were “very knowledgeable and accessible, and it was helpful to have the opportunity to be with others who do the same job I do,” noted Erin Shinn of First Bank, a $5.9 billion bank headquartered in St. Louis.

The workshops are designed for bankers who want to increase their comfort level in estimating the ALLL, including those who are new to that role. The program is split between presentations from experts on various aspects of the allowance, from models to methodologies, and smaller group sessions where attendees from like-sized institutions huddle over key issues. Presentations cover everything from the history of the ALLL to evaluating loans for impairment under the current incurred loss accounting model to examining strategies for complying with CECL to practical applications of loss emergence periods, economic forecasting, and stress testing.

“I haven’t worked on the allowance recently. It’s a new role for me, so I needed to get exposure to current thinking around the allowance,” noted Mark Mullins, director of data strategy and risk analysis for United Community Bank in Greenville, South Carolina. “Every session was valuable, from the presentation on stress testing to Economist Tom Cunningham’s insights on the forward-looking data necessary to estimate our allowance under CECL. Chris Emery’s discussion of the rules around segmenting loans into pools was particularly helpful.”

“I came to learn what we needed to do to get ready for CECL and also for some due diligence on an automated solution,” offered Mike Church of Newbridge Bank, headquartered in Greensboro, North Carolina. “It was great having both RMA and MST there. It was especially valuable to have someone from MST who has done a lot of integration work with banks across the country and can relate how various banks handle the work. The breakout sessions allowed us to get more granularto talk about why we do certain things and learn how other banks do them.”

“The workshop was very helpful,” Shinn added. “It confirmed for me that we were on the right path for a bank our size and gave me a better understanding of some things, like scrubbing our data, that we will have to do to be ready for CECL.”

With the recent announcement that banks will soon begin estimating their ALLL according to the new CECL accounting standard, RMA and MST have planned three workshops for 2016:

Estimating the Allowance for Loan and Lease Losses - April 26-27, Chicago, IL

Estimating the Allowance for Loan and Lease Losses - August 16-17, Philadelphia, PA

Estimating the Allowance for Loan and Lease Losses - November 15-16, Dallas, TX (Registration is not yet open.)

To learn more about MST, please visit:

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