November 14 — Sageworks, a financial information company that offers lending, credit risk and portfolio risk solutions to banks and credit unions, concluded its inaugural CECL Transition Workshop series this month. Sageworks hosted seven workshops throughout the country in 2018 to help financial institutions transition to the FASB’s current expected credit loss (CECL) accounting standard.
The company was one of the first vendors to release a software that offered CECL methodology elections, and Sageworks ALLL – the company’s CECL solution – is an ABA-endorsed solution for CECL. The workshops focused on recommendations for a Practical CECL Transition. Attendees had the opportunity to engage with Sageworks Advisory Services and Implementation teams in a face-to-face environment with ample time for discussions and questions regarding CECL. The workshops were open to current users of Sageworks ALLL and others, and they attracted more than 300 attendees from 207 institutions, with assets ranging from $30 million to $75 billion.
CECL Transition Workshop attendees had the opportunity to see how such software can aid in the CECL transition, giving participants a step-by-step walkthrough of what to do when making CECL calculations.
“I feel much better after going through this session,” said one Washington D.C. workshop attendee whose institution is utilizing Sageworks ALLL. “I was concerned that we were behind the curve, but after seeing the capabilities of Sageworks, I am much more confident.”
In addition to practical hands-on sessions, each workshop also covered case studies on data, segmentation methodology, average life-of-loan and forecasting. The case studies allowed participants to understand how different loss rate methodologies and scenarios can be implemented in a CECL-ready model, giving them a sense of what would be most effective for their own institutions as they prepare for their transition.
Sageworks will host additional CECL Transition Workshops in 2019. Dates and locations for next year’s workshops will be announced in December 2018. Please email email@example.com if you would like to receive the announcement email.