The 2023 class of CECL banks is being unnecessarily conditioned to a false reality: Their loan loss reserve will need to increase under CECL. If CECL is approached correctly, this is simply not true, unless the probability that a...

If your bank is scheduled to implement CECL in 2023, or you’re a CECL filer unhappy with your existing model, here is my strongest piece of advice: Stop looking for a “CECL” model. What you really need is a CECL process that is...

Although the deadline for CECL implementation for many community banks has been postponed until 2023, larger banks across the country are already using the new accounting standard. Their experiences will provide lessons for the...

Let’s face it: Publicly traded banks that implemented the new current expected credit losses (CECL) accounting standard during the COVID-19 pandemic faced a huge set of challenges. But what really drove their decisions about how...

The final version of the $2.2 trillion coronavirus relief bill passed by the U.S. Senate would make life easier for community banks this year. The bill temporarily lowers the community bank leverage ratio to 8 percent and...

The Federal Deposit Insurance Corp. this week did something unusual:  FDIC chair Jelena McWilliams sent a letter to the Financial Accounting Standards Board, asking it to delay implementing the current expected credit loss (CECL)...

If we do not get a miracle turnaround with respect to the coronavirus and its impact on markets, the first quarter earnings for most publicly traded community banks (SEC filers) is going to be a disaster because of CECL. In fact,...

Earlier this month, FASB published a Q&A related to the applicability of the Weighted Average Remaining Maturity (WARM) Method for CECL compliance. This method is widely considered to be the simplest approach to CECL since it...