Abrigo: Current Expected Credit Loss (CECL) Solutions

Abrigo’s allowance technology gives financial institutions flexibility in achieving CECL compliance by offering two ABA-endorsed solutions, Loan Loss Analyzer and Sageworks ALLL. The technology also acts as a data warehouse to help banks collect the information needed to produce forecasts and inform directors of the credit risk they face.

Both solutions automate the allowance calculation to maintain compliance with GAAP. The solutions give banks a host of loss rate methodologies and segmentation options to create the most defensible and representative model of credit loss in their portfolio.

Loan Loss Analyzer (LLA) is an automation tool tailored to the bank, which calculates and documents the Allowance for Credit Losses (ACL) under CECL to help satisfy regulatory and audit requirements. Sageworks ALLL similarly offers a compliant solution for GAAP, but it also affords banks flexibility  to quickly and easily test different CECL scenarios to see the estimated impact on the allowance and capital. The Sageworks solution is also integrated into Abrigo’s origination, stress testing, and asset/liability solutions.

When First & Farmers National Bank began searching for a CECL solution in 2020, the top priorities for a good fit were cost and integration support. And with a 2023 deadline fast approaching, they wanted stability, knowledgeable staff, and peace of mind that their vendor wouldn’t be bought or sold during the implementation process. They chose Abrigo; read about their story.

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CECL Model

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