CECL Consulting & Valuation

Is your loan loss methodology looking in the right direction?


The new FASB Accounting Standard Update means your financial institution clients must start to look forward when estimating losses in loan portfolios and to replace their existing incurred loss approach with a Current Expected Credit Loss (CECL) methodology.  Although the new methodology is required for SEC-governed financial institutions for fiscal years after December 15, 2019 (and one year later for non-SEC governed financial institutions) your client either has, or will soon be looking to you for guidance.

Diligent Bank Credit Advisors and Ferncliff Investments, LLC. are here to help your clients by providing nonattest services including assisting management with the  creation of a CECL model and implementation plan, identifying key drivers of expected loss, and establishing a plan to bridge potential data gaps. We’ve provided estimates of current expected credit loss to our clients since 2009. Our veteran credit advisory specialists have the experience your clients need to assist management with these important decisions.

Understanding their options and potential outcomes today will help your clients to not only address CECL requirements, but also provide actionable intelligence affecting provisioning, loan terms, portfolio management, and capital planning.

We help re-orient your view of loss by creating defensible CECL modeled output incorporating estimates of Probability of Default and Loss Given Default.

For additional information please download our CECL Informational Brochure or contact us.