Recorded: November 12, 2013
Length: 60 Minutes
The allowance for loan and lease losses (ALLL) calculation requires a documented approach to make certain financial institutions follow guidance every step of the way. Evaluating FAS 114 (ASC 310-10-35) loans for impairment is one of the most critical steps in the process. But with three different valuation methods, it can be difficult to determine which is the most appropriate for each institution. This webinar will discuss:
- How to classify loans as either FAS 5 (ASC 450-20) or FAS 114
- The three valuation methods for impaired loans and when to use them
- Common collateral impairment challenges
- When a loan can be moved from FAS 114 back to FAS 5
Speakers: Ed Bayer, Managing Director - Financial Institutions & Regan Camp, Senior Risk Management Consultant
Ed Bayer is the managing director of the financial institutions division at Sageworks, where he is responsible for revenue generated in our financial institution market. He previously served as a senior risk management consultant, with a primary focus on allowance for loan and lease loss provisions (ALLL) and stress testing loan portfolios. Before joining Sageworks, Ed was president of a private holding company where he focused on new business acquisitions, valuation models, federal taxation, and subsidiary business structures. Prior to that, Ed served as a financial consultant with Merrill Lynch, graduating from their Path of Achievement program.
Regan Camp is a senior risk management consultant at Sageworks, where he serves as a specialist in assisting financial institutions with accurately interpreting and applying federal accounting guidance. Regan primarily focuses on allowance for loan and lease loss provisions (ALLL) and stress testing loan portfolios. Prior to joining Sageworks, he served in various consulting capacities at Deloitte & Touche, L.P. and Dittrich & Associates LLC, where he assisted financial institutions in the administration of FDIC Loss Share Agreements and managed the establishment of special asset divisions and the resolution of troubled portfolios.
1 CPE Credit
Program Level: Basic-Intermediate