Loan Loss Reserve

CEIS Review performs CECL Validations to assess a bank’s reserve methodology to determine if recommendations for enhancements to align with regulatory guidance and industry best practices are needed.

CEIS’ Validations include reviewing the Bank’s framework and process for the establishment of the CECL/ACL to incorporate the relevant regulatory requirements, including ASC 326 and OCC Bulletin 2020-49, as well as other regulatory and accounting guidance documents and industry best practices. Each validation considers unique portfolio characteristics, existing and prior performance of the portfolio, portfolio concentrations, loss migration and historical losses.

Ultimately, CEIS will form conclusions as to whether the methodology is appropriate for determining the Expected Loss (EL) of the earning assets portfolio, in compliance with GAAP and regulatory requirements, and implemented as outlined in applicable policies or narrative documents.

Learn more about the specific loan loss reserve programs CEIS offers: