How to Communicate Your Bank’s CECL Findings to Investors

Edward Chung, Invictus Bank Capital Analyst


Although the deadline for CECL implementation for many community banks has been postponed until 2023, larger banks across the country are already using the new accounting standard. Their experiences will provide lessons for the rest of the community banking market.

Many public banks are probably wondering how to best communicate their CECL findings to investors. To get an answer, Invictus analyzed and collected the largest banks’ CECL disclosures in investor presentations. Click here to download these excerpts, which have been consolidated into a single document for your convenience.

Some of our observations:

  • Two-thirds of banks (38 of 60) dedicated a slide to loan loss reserves, signaling conscious efforts to risk management.
  • 21 banks disclosed that they used third-party data to inform parts of their analysis.
  • Banks generally used either a waterfall graph (22 banks) or a bar graph with a line graph overlay (17 banks) to present their CECL findings.
  • 20 banks mentioned using qualitative factors, while 11 banks gave indications of their magnitude.



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