Plansmith Blog

Featured Guest: Spotlight Financial

Posted by Michael Stinson & Reid Ten Kley, CPA on 5/21/19 1:07 PM

FASB Approves WARM Methodology for CECL

Community banks and credit unions looking for practical advice on how to implement the new CECL standard received a helping hand from the agency that authored the oft dreaded accounting rule. In a January 2019 Staff Q&A, the Financial Accounting Standards Board (FASB) stated that the weighted average remaining maturity (WARM) method is an acceptable method for less complex financial institutions to estimate expected credit losses. The FASB Q&A Comment also provided a couple different examples on the application of the WARM methodology to comply with CECL, and these examples do a good job of explaining the mathematics behind the calculation. If you haven’t done so already, you can read the FASB Q&A Comment here.

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Do It Yourself CECL

Posted by Jim Groark on 5/1/19 3:12 PM

Over the past 20 years I’ve experienced the usual ups and downs of home ownership. A leaky roof, a flooded basement, as well as the two-week bathroom remodel that turned into an eight-week job. I’ve seen it all. At first, I tried to tackle many home projects on my own. I soon discovered that I was a pretty good painter and a really bad plumber. After I accidentally caused an upstairs toilet to leak into the family room ceiling, I resolved to get help from a trusted plumber that had the proper tools and know-how to get any plumbing job done right.

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Another Great Year

Posted by Craig Hartman on 12/28/18 11:44 AM

Another great year has gone by, the stock market notwithstanding. With the number of banks and credit unions continuing to shrink, the cream is rising to the top. The quality of the remaining institutions is getting better.

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