Regulatory Expectations for Your ALLL Estimate

Presenter(s): Mark Uhler

Duration: 1 hour

Price: $249 / $199 for Affiliation Members

The value of estimating the allowance for loan and lease losses is highly underrated. Many bankers are so intent on staying abreast and in compliance with regulatory and accounting rules that they miss the significance of managing the reserves. Management needs to be proactive and understand the risks inherent in their loan portfolios in addition to attending to regulatory concerns. The purpose of the reserve is to quantify the potential loss a lender may have as a result of risks inherent in the loan and loan portfolios. Managing the amount is critical to bank earnings, bank capital and job security for the CEO and other bank executives.

This webinar will cover issues that are central to estimating your ALLL, including:

• Unraveling the complex regulatory and accounting requirements
• Creating strong documentation consistent with current regulations
• Valuing the portion of the reserve allocated to impaired loans - (FASB 114)
  • Documentation
  • Frequency of valuation
  • Acceptable valuation methods
• Valuing the reserve allocated to the general risk portion - (FASB 5)
  • Stratification of loan portfolio
  • What historical loss time frame is appropriate to use?
  • Weighting loss history
• Other factors to consider
  • What do I do when my loss history supports a figure that I think is too much or too little?
  • How much can other factors modify my reserve before triggering regulator issues?
  • Common mistakes to avoid

BIO: Mark Uhler

Mark joined Sheshunoff Consulting + Solutions' Risk Management Division after a 36 year banking career as a consultant, regulator, and banker with specialties in loan reviews, reserve for loan loss reserve analysis, and problem loan work out administration. Mark served as President and Chief Executive Officer of troubled banks in Kansas, Missouri, Oklahoma and Texas where he was responsible for successfully restoring the banks to a safe and sound condition.

Mark began his career as a national bank examiner for the Office of the Comptroller of the Currency in the Kansas City, Missouri in 1973.

Mark authored the “Guide to Developing a Written Lending Policy” for the American Bankers Association and participated in designing the “Business Banker” certification for the Institute of Certified Bankers.

Mark graduated from the Stonier Graduate School of Banking at Rutgers University in 1984 and received a Bachelor of Science, Business Administration degree from Pittsburg State University majoring in accounting and economics in 1977.

Continuing Professional Education Credit

Delivery Method: Group Internet-based       CPE Credits: 1
Program Level: Overview       Prerequisites: None       Advance Preparation: None

 

Sheshunoff Consulting + Solutions is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasbatools.com.

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