Plansmith Blog

CECL 2023: Where Does Your Financial Institution Stand?

Posted by Brett Hendricks on 1/3/23 3:26 PM

Easily, the hottest regulatory topic of the past seven years is CECL. On top of the long-term lead up, the regulations and deadlines have changed so many times that many institutions hoped the requirement would disappear altogether. However, as of January 1, 2023, CECL is a reality. So, how confident are you in the solution and CECL reporting tools your bank or credit union have decided to implement?

There have been two very popular paths: go with a spreadsheet-based internal solution, or choose a formal CECL software platform from an outside vendor. The in-house path has multiple options. The organization may try to develop a spreadsheet and model, or use the free models (SCALE or ELE) provided by the government. Alternatively, many financial institutions choose to partner with outside vendors to take advantage of the benefits included with a software-based model, such as assistance with implementation, professional training, CPA-level support, assumption documentation, etc.

All of that said, where does that leave us today? Well, the reality is that many organizations, especially those who hoped CECL would go away, are not truly prepared for the CECL reporting deadline and their upcoming 2023 exams.

If you’re squirming in your seat a bit or you feel like what you have done may not be enough, don’t worry – there’s hope. We can help you get up-and-running on a fully validated, web-based CECL platform quickly. With Plansmith, you’ll get a robust yet easy-to-use CECL model that applies the WARM Method to keep you in complete compliance:

  • Immediate access, web-based CECL platform
  • Institution-specific historical loan loss data and peer analysis
  • Professional CPA-level accounting guidance and onboarding support
  • Built-in economic forecast/future conditions analysis
  • Automated key WARM Method assumptions

You're expected to have a CECL solution in place now. If you haven't yet chosen a solution, we urge you to finalize your decision. It doesn't have to be expensive or complicated, and it's not too late to get a solid solution implemented. You can go at it alone, or you can choose a partner to help set you up for success. If you’re still searching for an easy-to-use and affordable solution, or you’re not happy with the process you originally put in place, Plansmith can help. Click here to schedule a discussion.

Topics: CECL

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