Proficiency deck

Question 1

ALLL

Answer 1

Provides for estimated credit losses. Must maintain an appropriate ALLL and reasonable, documented methodology.

Question 2

How often should the ALLL be evaluated?

Answer 2

At least quarterly

Question 3

In evaluating adequacy of ALLL, assess

Answer 3

1. classifications, 2. level of volume/trend 3. underwriting practices 4. reasonable of mgmts ALLL methodology

Question 4

Provision for ALLL is listed on the _____ as an _____

Answer 4

income statement as an expense

Question 5

ASC Topic 310 (FAS 114)

Answer 5

Accounting for individual impaired loans

Question 6

Three measurement standards for impairment

Answer 6

1) PV of expected future CF, discounted at effective interest rate. 2) Loan’s observable market price. 3) FV of collateral, if loan is collateral dependent.

Question 7

ASC Topic 450-20 (FAS 5)

Answer 7

Accounting for contingencies, quantitative and qualitative factors

Question 8

All federally insured depository institutions must maintain an ALLL, except for federally insured branches and agencies of foreign banks.

Answer 8

TRUE