Camden National Bank wins Celent Model Bank Award for Implementation of Sageworks ALLL
Raleigh, N.C., April 24, 2018 – Sageworks, a financial information company that offers lending, credit risk and portfolio risk solutions to banks and credit unions, announced today that their client Camden National Bank of Camden, Maine, has been recognized by Celent as the winner of the 2018 Celent Model Bank award for Risk Management. The bank was awarded for its initiative to automate the allowance for loan and lease losses (ALLL) and prepare for the Current Expected Credit Loss model (CECL) by partnering with Sageworks. Camden National Bank serves customers at 60 banking centers and currently has $4.1 billion in assets.
Celent is a global research and advisory firm for the financial services industry, and the Celent Model Bank is awarded to institutions with the best technology usage in different areas of banking. Nominations are submitted by financial institutions and undergo a rigorous evaluation process by Celent analysts. Celent judges submissions on three criteria: demonstrable business benefits of live initiatives, the degree of innovation relative to the industry and the technology or implementation excellence.
The winning initiative was instrumental in Camden National Bank’s strategy to meet heightened methodology, data and disclosure requirements that come with the FASB’s new standards for recognizing credit losses. To ensure they had a consistent and defensible ALLL methodology under CECL and to ensure their processes were sound and efficient enough to accommodate their growing portfolio, Camden National Bank implemented Sageworks ALLL.
Camden National Bank utilized the web-based solution, which is part of the Sageworks Banking Platform, to move away from a time-consuming, Excel-based model. Camden National Bank’s ALLL transition with Sageworks resulted in:
-Reduced risk of input error or version control, and enhanced transparency throughout the process
-Easier reporting to auditors and regulators, who can view the allowance calculations and complete sample testing in a point-and-click environment
-Less time spent querying data allowing more time for data analysis
-Early preparedness for calculating the allowance in compliance with the expected loss standard
-An enterprise-wise understanding of and appreciation for the allowance under CECL, leading to a more collaborative and transparent approach to the management of credit risk across departments at the bank
The Sageworks Advisory services team engaged with Camden National Bank to provide expertise and guidance around the accounting transition, working with cross-functional teams to establish data adequacy, select models and determine the responsiveness of candidate models to deteriorating and improving economic conditions.
The Celent Model Bank Awards were presented at Celent’s Insight & Innovation Day on Tuesday, April 24, 2018 in Boston. Camden National Bank’s ALLL initiative was selected as a winner from among a record 170 nominations from 100 financial institutions globally.
“We are thrilled to be recognized alongside so many institutions who are changing the face of the industry through technology,” said Susan Weber, SVP of Credit Risk Administration at Camden National Bank. “Our partnership with Sageworks has been a key factor in advancing our initiative, delivering consistent excellence in both the product and in support for our implementation,” Weber explained. “With the CECL standard being so new comes the possibility for change in its requirements and need for adjustment. We are pleased to have found a vendor as committed as we are to forward-thinking improvement. This has been and continues to be a collaborative and iterative process – hallmarks of any strong partnership.”
“Sageworks is honored to be a part of Camden National Bank’s digital transformation, and we congratulate them on winning the Celent Model Bank Award for Risk Management,” said Scott Ogle, CEO of Sageworks. “The bank has been a trailblazer in preparing for CECL, and we look forward to continued collaboration with this impressive organization.”
About Camden National Corporation
Camden National Corporation (NASDAQ:CAC), founded in 1875 and headquartered in Camden, Maine, is the largest bank holding company in Northern New England with $4.1 billion in assets and nearly 650 employees. Camden National Bank, its subsidiary, is a full-service community bank that offers an array of consumer and business financial products and services, accompanied by the latest in digital banking technology to empower customers to bank the way they want. The Bank provides personalized service through a network of 60 banking centers, 76 ATMs, and lending offices in New Hampshire and Massachusetts, all complemented by 24/7 live phone support. This year marks the 8th time Camden National Bank has received the “Lender at Work for Maine” Award from the Finance Authority of Maine. Comprehensive wealth management, investment and financial planning services are delivered by Camden National Wealth Management. To learn more, visit CamdenNational.com. Member FDIC.
Sageworks offers banks and credit unions lending, credit risk and portfolio risk software to efficiently grow and improve the borrower experience. By automating the life of the loan with Sageworks, bankers book commercial loans faster and reduce risk. Sageworks uniquely provides integrated solutions and industry expertise to more than 1,200 financial institutions that achieve an average 38% higher loan growth than peers. Visit www.sageworks.com to learn more.