CECL
The current expected credit loss (CECL) is an accounting standard that changed how depository financial institutions of any size account for expected credit losses. CECL requires financial institutions to record “life of loan” loss estimates at origination or purchase. This replaced the Incurred Loss (ICL) accounting model.
- FAQs for all your Current Expected Credit Loss (CECL) questions
- Learn more about our CECL solution
Whitepapers
CECL is different from the current loan loss reserve approach since it includes both probable and projected losses over the life of the loan. Learn how this impacts bankers with a diversified loan portfolio.
The CECL approach estimates both probable and projected portfolio losses over the portfolio life. Complexities arise when you have to anticipate repayment and the rate of prepayment. This can be difficult depending on the type of loan. Explore strategies for balancing the rollover risk and reserves.
Case Studies
As Bay State Bank expanded, it sought a CECL partner that could not only meet regulatory demands but also align with its growth-oriented vision. Download their case study to learn how PCBB's CECL FIT® supported the bank's growth and evolving loan portfolio needs.
Learn more about how Icon Business Bank, a newly established bank, addressed unique challenges in implementing CECL, like no historical data and a lack of in-house resources, using PCBB's CECL FIT®.
Harleysville Bank struggled with a labor-intensive CECL process that consumed substantial resources and time. Download their case study to learn how PCBB's CECL FIT® helped them enhance efficiency and automate manual processes.
Podcasts
Chief Credit Officer, Michael Kerr of First Federal Bank shares his experience with CECL, and why his institution ultimately decided to outsource CECL, after starting off in-house.
Part 2 of our 2-part series on CECL discusses getting started with CECL, and the use of spreadsheets. Andy Hines, Chief Lending Officer, and EVP at The Bank of Glen Burnie, joins us again to share his insights on getting started with CECL, his thoughts on spreadsheets, and more.
Part 1 of our 2-part series on CECL covers data organization and explaining CECL results to stakeholders. We sit down with Andy Hines, Chief Lending Officer, and EVP at The Bank of Glen Burnie, for his insights on both.
Webinars
In this virtual roundtable with a panel of community financial institution executives, we explored their journey of implementing CECL. Here are the strategies, lessons learned and insights that they can share with their peers based on their implementation journey.
A new accounting standard means lots of changes, including how qualitative factors (Q Factors) apply. In this webinar, gain an understanding of Q Factors with CECL, and learn how they need to be applied under CECL compared to the incurred loss model.
Join PCBB as we work through live examples of different methods and evaluate the pros and cons.
CFIs are contending with CECL process pressures, vendor support gaps, and tool migration challenges amid economic and regulatory shifts. We offer practical tips.
As office vacancies persist in cities, CFIs must assess how suburban and rural markets could be next — and what it means for CRE portfolios and CECL modeling.
The impact of CECL has been different for small and large CFIs, reflecting the differences in portfolio composition and pre-existing accounting practices between these institutions. We discuss contributing factors.