Sageworks Issues “The Complete Guide to the ALLL” for Credit Unions, Financial Institutions
RALEIGH, NC (June 26, 2013) Sageworks today announced the release of “The Complete Guide to the ALLL,” an e-Book designed to help credit unions and financial institutions calculate their allowances for loan and lease losses.
The ALLL calculation, an estimate of uncollectible amounts used to reduce the book value of loans and leases, is one of the most important processes in a financial institution. Because of increased regulatory scrutiny placed on the reserve and its significance to an institution’s earnings, a comprehensive and defensible ALLL methodology is critical. Many financial institutions, however, find themselves challenged with estimating, documenting and defending the allowance estimation to constituencies (including regulators, external auditors and the board).
While there are many resources available to help with the reserve, Sageworks has compiled all of the necessary content in one place with the “Complete Guide.”
The e-Book includes insight on:
- How to classify loans as either FAS 5 or FAS 114
- Best practices for selecting and documenting qualitative factors
- How to effectively support a change, positive or negative, to the ALLL
- Challenges and benefits of migration analysis
- FASB and IASB proposals and their potential impact on financial institutions
To download this free e-Book, which includes 10 chapters and other resources, please visit: The Complete Guide to the ALLL.
Sageworks is a financial information company that works with financial institutions, accountants and private-company executives across North America to collect and interpret financial information. With almost 700 financial institution clients in the U.S., Sageworks provides a web-based suite of solutions to streamline credit analysis, risk rating, portfolio stress testing, loan administration and ALLL estimation. Additional allowance for loan and lease loss resources can be found online at www.sageworksanalyst.com.