CECL Solution from Sageworks

Navigate the CECL transition with a trusted ALLL partner

Hear from Darren Flavell, National Cooperative Bank

  • Automatically and securely collect, store and manage loan-level data
  • Plan using a number of robust methodologies, including migration analysis, vintage analysis and probability of default/loss given default (PD/LGD)
  • Run scenarios to test calculations and plan for the one-time capital adjustment
  • Establish Risk Factor Drivers for Q-factors to support qualitative adjustments
  • Learn from a network of thousands of bankers and partners
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Video: 5 Steps for CECL implementation planning

How Blue Ridge Bank is preparing for CECL

Challenge

Blue Ridge Bank was concerned that the FASB’s new CECL model will bring significant changes to the ALLL calculation. Brian Plum, President and CEO, states, “Once FASB started rearing its head, our executive team started talking about the need for an automated solution.” Because the bank was calculating its ALLL on internal spreadsheets, there was concern about its processes holding up to the increased demand for granularity and the overall complexity of the ALLL calculation under CECL.

Hear why bankers rely on Sageworks ALLL

Save Time on the ALLL

“Prior to automating our calculation, we had numerous spreadsheets with numerous tabs. It would take me 3 to 4 weeks to do the calculation and board members had difficulty understanding it. With Sageworks, it takes me about 2 days to do the calculation.”

Sean McCabe SVP and Sr. Credit Administrator
Bank of Manhattan

About Sageworks ALLL

Flexible Loss-Rate Modelling

  • Try out different loss rate models by pools or blend them
  • Choose from static pool, migration analysis, vintage analysis, DCF and probability of default/loss given default (PD/LGD)
  • Create a more robust and defensible loss rate methodology
  • Leverage an advanced and customized analysis to meet the institution’s needs

Qualitative Factors & Reasonable Forecasts

  • Apply reasonable and supportable forecasts to a forward-looking cash flow model
  • Better justify and support changes to qualitative adjustments
  • Calculate probabilities of default based on projected economic conditions
  • Save time by pulling in FRED data to help with analysis