Hear from Darren Flavell, National Cooperative Bank
Blue Ridge Bank was concerned that the FASB’s new CECL model will bring significant changes to the ALLL calculation. Brian Plum, President and CEO, states, “Once FASB started rearing its head, our executive team started talking about the need for an automated solution.” Because the bank was calculating its ALLL on internal spreadsheets, there was concern about its processes holding up to the increased demand for granularity and the overall complexity of the ALLL calculation under CECL.
Blue Ridge Bank adopted Sageworks ALLL to ensure that it will be compliant with the ensuing changes in the regulatory landscape. Plum states, “With the big changes coming, we now have a partner making sure the methodology we’re using is in line with where we need to be.” In evaluating other solutions, Plum found Sageworks ALLL to be the best option for preparing for CECL, as it is the only solution that provides a custom integration and is “more seamless and a better all-around solution.” Plum also notes the overall increase in efficiency. “When we did [the ALLL] on spreadsheets, we would always have to worry about having the formulas correct. We now have a much better breakdown by segmentation, and we’re doing the calculation in much less time…it’s truly a painless process,” Plum states.
“At the end of the day, the data’s a lot better, the calculation’s a lot better, and we’re in a much more defensible position to justify our ALLL,” says Plum. Most importantly, when asked about Blue Ridge Bank’s readiness to adapt to changing regulation, Plum remarks, “We’re in great shape. We have what we feel is going to be the granularity to always be able to defend what’s in the allowance and have confidence in our process.”
"Prior to automating our calculation, we had numerous spreadsheets with numerous tabs. It would take me 3 to 4 weeks to do the calculation and board members had difficulty understanding it. With Sageworks, it takes me about 2 days to do the calculation."
SVP and Sr. Credit Administrator
Bank of Manhattan
“Previously with Excel, if we wanted to look at a monthly interim calculation, we would have to run the core reports and manually input them. With Sageworks, the numbers are inside the software and available with just a few clicks of a button – giving us significant quarterly time-savings."
Jonestown Bank & Trust