In-Depth CECL Reporting Preconfigured and Simplified

FASB’s Current Expected Credit Loss (“CECL”) implementation deadline is December 15, 2019 for Securities and Exchange Commission (“SEC”) filers and December 15, 2020 for other entities. Brean has created CECL reporting and surveillance dashboards with the ability for users to review bank call report data aggregated at the national, BEA regional, state or individual institution level. By aggregating these records quarterly over 12 years, Brean has been able to track the chargeoff rates, changes in balances and loan growth, relative to macro-economic indicators. Users rely on this data to track their own institution’s performance as well as performance of other similarly sized institutions within their state and region. Brean Strategic’s business intelligence reporting lets you compare you institution’s standing:

Brean’s Affordable, Turnkey Pre-Configured CECL Solutions                                                  

A refined CECL solution should not burden your institution with significant implementation costs. Brean Strategic’s  is the analytical arm of Brean Capital, a 45 year old investment bank. Brean Strategic’s CECL solutions are built by a team of market practictioners with experience acquiring and securitizing loans at bulge bracket and regional banks, data scientists and quants. Our pre-configured CECL solutions are designed to work concurrently with your existing infrastructure without reinventing the wheel.

CECL Analytics Integration on Existing Reporting Infrastructure

Brean Strategic’s CECL reports and dashboards integrate seamlessly with your bank’s existing  software infrastructure, reducing the cost and pains associated with implementation and training. Loan tapes can be entered as easily as uploading a file into Brean’s software solution and  CECL analytical reporting is automatically generated.

CECL’s Complexity Streamlined & Simplified

We have developed three solutions to enable your financial institution to satisfy  CECL requirements.

1. CECL Top Down Expected Loss Model. Institutions can choose a forecasted macroeconomic scenario which best represents the view of their management. Our model has calculated the expected loss for each scenario based on a statistical regression analysis of similar banks in the region. The tool also enables an institution to review their historical performance by region alongside economic indicators.

2. CECL Bottom Up Model. For institutions which want more granularity in their forecast, Brean constructed a loan level model based on the statistical analysis of the historical performance of a universe of securitized and bank whole loans.

3. CECL Data Warehouse. Many of our clients find it difficult to aggregate piecemeal data which might be culled from a combination of different data sources such as asset-liability management extracts, origination and underwriting data, and servicer data. Brean’s team of data scientists can help financial institutions aggregate their data into a data warehouse, enrich the data with local home prices and unemployment and render this data on a portal for use in risk reporting. In one representative data analytics engagement, Brean built a loan origination and performance database from 400 million data points which is now relied upon by leading asset managers and investors for a multi-billion dollar sector.

Low Cost Automated CECL Periodic Reporting

A refined CECL solution does not burden your institution with substantial reporting costs every reporting cycle. Brean Strategic’s CECL solutions, once integrated with your existing system, will provide your institution with automated periodic CECL reporting without incurring exponential costs each reporting cycle. We constantly update the databases behind our model without incurring additional costs to your end users.

Detailed CECL Dashboards for Different Stakeholders

CECL analytics and modeling can be complex. Brean Strategic’s team consists of quants, data scientists and seasoned industry veterans.  We have simplified the complexity of CECL reporting. We offer simplified and complex customizable versions of CECL reporting which can be utilized by different stakeholders within your organization without incurring additional costs.