Year end for many institutions is here and you have to finalize your ALLL estimate. Regulators will be scrutinizing these estimates as the industry continues to deal with the credit crisis. If you are responsible for your institution’s Allowance for Loan and Lease Losses (ALLL) estimate, there are some important issues that you need to consider when developing the estimate. One of these issues that the examiners are reviewing is your evaluation of “qualitative” factors to meet regulatory expectations for FAS 5 losses.

Although the Interagency Policy Statement issued in December 2006 has helped institutions to better understand how to create a well-documented, transparent estimate, critical issues can still easily slip through the cracks. And if they do, you risk having your estimate rejected in a regulatory exam.

Join Pratt’s interactive audio conference as our expert speaker goes over the important issues that you need to consider when compiling your ALLL estimate to make sure that you don’t overlook anything.

Topics to be covered include:

• Understand how to develop and analyze “qualitative” factors to incorporate in your FAS 5 loss estimate
• Learn to defend the part of your estimate that you can’t allocate to FAS 5 or FAS 114 loans
• Learn about a FAS 5 tests that can protect the validity of your estimate
• Avoid tainting your estimate with concerns over the economy
• Understand when not to use FAS 114, even if the loan is impaired
• Know if you have enough documentation to satisfy the regulators
• Know how to treat contingent liabilities in your estimate
• Determine if your non-accrual triggers will meet ALLL requirements
• Decide on the proper method for evaluating FAS 114 loans – there are three and the answer may not be obvious

The program includes a 30-minute Q&A session following each session. Listen in and get the chance to ask your specific questions!

Registration Includes:

• Admittance to the 90-minute call for as many people as you can fit in a room
• Access to all presentation handouts (made available 48 hours in advance)
• A 30-minute live Q&A with the speaker following the presentation
• Certificates of attendance for all audio conference attendees

About Our Speaker

Gary M. Deutsch, CPA MBA CMA CBA CIA has worked extensively with financial institutions in audit, lending, financial, and operational areas. He has served in senior positions for regional banks as VP of Finance, Real Estate Loan Officer and Senior Audit Manager. Mr. Deutsch served as a consultant to financial institutions in strategic planning, profit improvement, financial management, and merger- and acquisition-related studies while working at KPMG. He was the CFO at a start-up bank, where he organized the accounting, finance, and investment functions to manage significant growth.

Mr. Deutsch is the President of BRT Publications LLC, a professional authoring company serving the financial industry. Some of his published works for AlexInformation include ALM Management Manual, Loan Procedures Manual, Practices and Procedures for Financial Institutions Risk Management, Bank Controller’s Manual, Internal Audit Procedures Handbook, and Risk-Based Audit for Financial Institutions.