1. Auditing Your ALLL Estimate

Auditing Your ALLL Estimate

Auditing Your ALLL Estimate
Event ID: 16001
Not for Sale
Recording: 15085

Duration: 90 minutes including question and answer period.
Presenter(s): Gary Deutsch, CPA, President, BRT Publications, LLC
Price: $299.00, On-Demand includes full audio presentation, question and answer session, and presentation slides.
Who Should Attend? CFOs, controllers, financial officers, credit risk officers, loan review, senior lending officer, loan administration, loan officers, internal auditors, audit committee members, anyone involved with enterprise risk management


Lower loan losses to date and a generally more stable economy are reasons why memories of the last recession may be fading. However, financial institutions cannot lose focus on the importance of the allowance for loan and lease losses (ALLL) estimate. Loan risks are still present and regulatory expectations for your ALLL Estimate have not abated. For instance, the Fed has begun to raise interest rates and indications are that the Fed will push interest rates higher. Are your borrowers prepared for the added borrowing costs? Commercial real estate values are improving in many areas, but the economics supporting retail and office projects are still fragile. Lenders, where there is a regional dependence on the oil market, may need to look at the direct impact of depressed oil price on some loans and the impact on their region generally if employees and other businesses are affected. Multi-family projects that are spreading throughout the country may be reaching saturation. Are these issues being adequately addressed when developing your institution’s ALLL estimate? Are inherent losses in your commercial real estate loans recognized in your ALLL estimate?

Based on the credit losses many banks experienced after the Great Recession, financial institutions cannot afford to let this critical loss accrual go onto their institution's balance sheet without proper scrutiny. The risk of safety and soundness violations and officer and director liability remains significant even in an improving economy. And since regulatory guidance allows for judgment in the process, Internal Audit needs to help the institution by evaluating the soundness and consistency of the ALLL estimate prepared for the board's approval.

Please join Gary Deutsch as he guides you through developing, performing and auditing the ALLL estimate to assure that your institution and board are prepared to fulfill this vital function and meet regulatory expectations for your ALLL estimate.


This webinar will provide the keys to auditing your ALLL estimate, including:

  • Review of the data collection, analysis and judgmental process required to prepare an ALLL estimate
  • Discussion of alternative estimation methodologies and their impact on the ALLL estimate
  • Methods for conducting a risk-based audit of the ALLL
  • Future audit impact of the FASB's proposed current expected credit loss (CECL) on data collection and analysis


Your conference leader for "Auditing Your ALLL Estimate" is Gary Deutsch, president, BRT Publications LLC. Mr. Deutsch is a licensed CPA in Maryland and has a B.A. in accounting and an MBA in finance from Loyola University Maryland. He has also achieved the Certified Management Accountant, Certified Internal Auditor and Certified Bank Auditor designations. Mr. Deutsch is the founder and president of BRT Publications LLC.

Mr. Deutsch has trained thousands of financial institution professionals in all aspects of risk management and has written numerous books in the U.S. and Europe on topics such as credit risk, internal audit and compliance with Generally Accepted Accounting Principles. Mr. Deutsch has extensive risk management and internal audit experience through his association with financial institutions of all sizes as well as through his role leading the KPMG financial institution consulting practice in the Mid-Atlantic region.


BankersWEB, a division of DKG Media, LP, wants you to be satisfied with your webinar. If this webinar does not meet your expectations, email us at [email protected].


BankersWEB certificates of participation are available to everyone completing this webinar.