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Allowance for Loan & Lease Losses Review

Concerns

  • Disparate views with the regulator regarding allowance for loan and lease losses (ALLL) reserves
  • Determining ALLL sufficiency
  • Using the best methodology to calculate ALLL and being able to defend it
  • Accounting for TDR’s
  • Knowing that the ALLL policy is up-to-date and applicable given recent economic conditions

Goals

  • Solidify methodology and documentation
  • Validate ALLL sufficiency
  • Ensure GAAP compliance

Results

  • Increased confidence in calculation accuracy
  • Updated and aligned internal policies and procedures
  • Documentation accuracy, and decreased regulatory scrutiny

Why outside Assistance for Allowance for Loan and Losses Analysis?

The Allowance for Loan and Lease Losses (ALLL) provisioning methodology has increasingly become a focus for regulators. The issue of how to calculate ALLL reserves and present an accurate, defensible ALLL strategy is the cornerstone of The Rochdale Group’s program. The Rochdale Group’s approach enables credit unions to perform FAS 5 and FAS 114 calculation analysis consistent with generally accepted accounting principles (GAAP). The Rochdale Group’s experience can deliver enhanced methodologies for an ALLL calculation approach that works for your credit union. Our approach is customized to the complexity, capabilities and reporting requirements for your individual credit union’s risk profile.

Why The Rochdale Group?

The Rochdale Group is a nationally recognized provider of services to the credit union movement, possessing significant technical and industry experience providing services to over 500 credit union entities. The Rochdale Group collaborates with credit unions to tailor solutions to its clients in today’s fast-changing and competitive environment.