How to Justify a Change in Your ALLL

An overstated ALLL reserve can understate and limit a bank's or credit union’s earnings. And an understated ALLL reserve will overstate the institution’s earnings and can result in the violation of law. If banks or credit unions feel they have an overstated ALLL, how can they justify a decrease in it? In this webinar, Sageworks discussed:

  • Criteria a bank or credit union should use to evaluate its ALLL
  • Recommendations and best practices to support a change
  • Key areas examiners investigate after a significant change to the ALLL
  • Other key challenges in the estimation of the ALLL