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Aug 13, 2020

Dive into some of the details in loan coding, CECL and how they both are impacted by the pandemic. Segments are getting more granular, stress-testing needs a different approach, and qualitative analysis is murkier than ever.
Topics discussed in this episode:
3:48 Significant changes in segmenting
6:18 Don't get too crazy with your segments
6:48 The difference between segments for CECL vs stress testing
8:32 Changes in CECL segments, forecast and qualitative analysis
9:30 The length of the forecast horizon
10:20 Documentation for CECL
12:50 Farm lenders are not getting a pass in this recession
14:08 Qualitative Adjustments
17:05 What can you rely on?
About Paula King:
Paula King, CPA, is Senior Advisor for Abrigo Advisory Services, part of a team of subject matter experts assisting financial institutions nationwide in the interpretation and application of Current Expected Credit Loss (CECL), credit processes, policies and procedures and model validations.
Paula has held executive positions, including as Chief Financial Officer, in the banking industry for more than 25 years. As a former CFO, Paula has extensive experience in the design, preparation and reporting of the allowance for loan and lease losses, including ensuring compliance with regulatory and audit requirements, and creating allowance policies, procedures, and processes. In addition, she has served on internal credit committees and worked with loan operations and lending staffs to improve credit processes and enhance the capabilities of a variety of core loan systems.
Prior to her banking career, she was associated with a regional public accounting firm and specialized in bank audit services.
Paula has been responsible for SEC and financial reporting, strategic planning, and has served as Chief Risk and Compliance Officer. She is a bank co-founder and served as a member of the board of directors through its merger with another financial institution and has been a de novo bank consultant to boards and senior management teams.