Allowance for Loan and Lease Losses (ALLL) Methodology & Review

CRF Advisors assists our clients with the implementation of the ALLL calculation in accordance with ASC-450-20 (previously FAS 5) and ASC 310-10 (previously FAS 114). We also ensure the ALLL policy is in conformity with Interagency Policy Statement FIL 105-2006. CRF Advisors also performs an independent review of our clients Allowance for Loan and Lease Losses (ALLL) methodology, documentation, and process implemented by Management.

Our review procedures focused on the following areas: ALLL policies and procedures, credit quality monitoring and reporting, completeness of the ALLL computation and supporting documentation, and conformity of the ALLL methodology with interagency policy and accounting standards.