Moody’s Analytics announced that Penn Community Bank has selected the ImpairmentStudioTM solution to support its adoption of the Current Expected Credit Loss (CECL) accounting standard.
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Penn Community Bank selects Moody’s Analytics to automate its CECL workflow
Banks and credit unions use the ImpairmentStudio solution to automate allowance calculations, analysis, reporting, and workflow. It also supports a wide range of methodologies and loss-forecasting models adapted to each institution’s unique profile.
Penn Community is preparing to implement the CECL standard in 2023. By using the ImpairmentStudio solution to automate CECL-focused processes, the bank will significantly reduce the time required for CECL calculations and deepen its analytical capabilities across portfolios. The bank now also gains access to integrated award-winning economic scenarios, loss-rate and discounted cash-flow models, audit trails, and governance and reporting capabilities.
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“Having a single platform that calculates our Allowance for Loan and Lease Losses/Incurred Loss now—and our CECL calculations in 2023, when we begin reporting under the new standard—is invaluable,” said Charles Field, Chief Financial Officer at Penn Community Bank. “It is especially convenient to have an end-to-end solution that also incorporates loan-level models, spreading functionality, and capital planning tools.”
“As banks face historic economic headwinds, prudent risk management is essential,” said Eric Ebel, Managing Director at Moody’s Analytics. “We welcome the opportunity to support Penn Community Bank and other community banks preparing to make the transition to CECL under the difficult market conditions created by COVID-19.”
