HomeConsulting ServicesLendingAllowance for Loan and Lease Losses Reviews

Maintaining a reserve to protect against potential credit losses is a federally mandated requirement for financial institutions. This requirement is subject to regulatory scrutiny as well, which necessitates maintaining the ALLL at an appropriate level and for documenting its analysis.

Young & Associates offers comprehensive Allowance for Loan and Lease Losses methodology reviews to help your organization confidently move forward with your credit functions. With our independent assessment of your methodology and processes, performed annually or biannually, your organization can validate its ALLL reserve and ensure the soundness of your institution.

The Y&A Advantage

Young & Associates provides independent, third-party reviews of the methodology of your allowance for loan losses accounting. Our guidance for your organization’s ALLL policies and procedures ensures your decision-making is fully informed, and our team of experts has the regulatory expertise and industry experience to support your institution’s success. Contact us to learn more about our ALLL review services.

Our ALLL Review Process

By outsourcing reviews of your allowance for loan losses to Young & Associates, you gain the assurance that your financial institution’s loan loss reserve will meet regulatory requirements. During our review of your ALLL methodology, Young & Associates will:

• Comply with the 2006 Interagency Policy Statement on ALLL
• Validate your institution’s methodology for calculating its allowance for loan and lease losses estimate
• Ensure your ALLL accounting meets the latest GAAP standards
• Maintain up-to-the-minute knowledge of regulatory changes and additions
• Analyze your company’s documentation and procedures for adherence
• Evaluate your institution’s overall risk profile as it relates to relevant loss reserves

Through a comprehensive, thorough, and extensively documented procedure, Young & Associates can support your organization’s ALLL accounting to ensure you can confidently meet any regulatory challenge. Contact us to learn more.