How to Manage Allowance for Loan and Lease Losses (ALLL) Reporting


Host Analytics | Sep 26 2018

The purpose of the ALLL is to reflect estimated credit losses within a bank’s portfolio of loans and leases. Estimated credit losses are estimates of the current amount of loans that are probable that the bank will be unable to collect given the facts and circumstances since the evaluation date (generally the balance sheet date). That is, estimated credit losses represent net charge-offs that are likely to be realized for a loan or group of loans as of the evaluation date. The ALLL is presented on the balance sheet as a contra-asset account that reduces the amount of the loan portfolio reported on the balance sheet. Much analysis goes into to reporting accurate numbers for ALLL.

Blue Line Planning will demonstrate how to manage the results you need for proper ALLL reporting.