Review the Elements and Thought Process in Establishing and Maintaining an Adequate ALLL Level
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 valuation reserve established and maintained by charges against the bank’s operating income and is an estimate of loans that may be uncollectible. The Allowance is watched not only by the major agencies responsible for supervision of the banking system, but also by the American Institute of Certified Public Accountants, the Internal Revenue Service and the Securities & Exchange Commission. All have similar but yet, conflicting perspectives on how much of an allocation should be contained in the ALLL. This session by Jeffery Johnson is designed to review the elements and thought process in establishing and maintaining an adequate ALLL level under the new guidance.
He will use case studies, slides, problem-solving skills, online exams, charts and step-by-step analysis to certain occurrences from the charts and graphs.
The specific topics to be covered in this Webinar include:
How to utilize to calculate ALLL
Establishment and Purpose of the ALLL
Loan Grading and the impact on the ALLL
General Framework required to establish the ALLL
Use of technology to aid in the calculation of Historical Loss Rates
Reinforce Concepts with Allowance Calculation Cases
FFIEC Policy Statement on the ALLL Methodologies & Documentation
Who should attend:
Beginners and professionals in the banking, credit and financial services industry, followed by mid-management and upper-management.
Jeffery W. 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.
Disclaimer: The content herein does not represent any association between CFPB and Eli Financial LLC. CFPB neither endorses any product of Eli Financial LLC nor warrants accuracy of the content hereto.