Like all banks, you spend significant time and effort managing the risk in the loan portfolio. Calculation of your bank's Allowance for Loan and Lease Losses (ALLL) is a key part of the risk management process and bottom line profitability. PCBB's Allowance for Loan and Lease Losses Quantifier (ALLLQ) helps your bank incorporate accounting and regulatory best practices by providing you with a systematic and repeatable process to calculate a meaningful assessment of your loss allowance.
Our service minimizes the financial impact (time and cost) on your institution by:
Giving you the flexibility to quickly choose from a variety of configurations/scenarios to better match your reserve to current and changing credit performance and economic conditions
Allowing you to focus on results and conclusions rather than on the task of accumulating and analyzing historic data
Saving your institution time and money by providing a comprehensive reporting and consulting solution to free up your staff for other activities.
Eliminating the need for software management (configuration, maintenance and upgrades)
When you work with PCBB, your bank will benefit from our years of experience partnering with banks just like yours. We bring the expertise needed to assist you in meeting regulatory expectations and improving risk management processes.
Executive summary includes both comparisons of bank performance to prior periods as well as industry benchmarks
Trends in performance are presented in both tabular and graphic forms
Multiple reporting perspectives supported
Back-testing vs. actual results provided
Includes support for footnote disclosures
Detailed narrative evaluating conceptual approach and modeling considerations
Third-party validation completed
Key assumptions fully documented and disclosed
Professional staff is available to review results with you and/or your board, examiners and auditors
Ongoing support to help your staff properly prepare for regulatory and accounting reviews
Multiple Conceptual Approaches are Available
Single-grade migration to loss
Single-grade migration to default and loss
Dual-grade migration to default and loss
Probability of default and loss-given default (PD/LGD)
Consistent with ASC and Joint Policy Statement on ALLL
Separate consideration of government-guaranteed, cash-secured and assets carried at fair value
Quantification of loss associated from unfunded commitments accounted for separately
Qualitative adjustments are supported at both the portfolio and grade level
Level and trend in defaults and losses are summarized to provide a basis to establish qualitative factors
Qualitative factors can be applied either as aggregate or granular adjustments
Pacific Coast Bankers' Bank and PCBB Capital Markets are sister companies and subsidiaries of Pacific Coast Bankers' Bancshares.
All securities are offered through PCBB Capital Markets, member FINRA/SIPC.