Where Better Data Meets Better Results
nCino's comprehensive ALLL / CECL solution enables credit and finance teams to reduce regulatory scrutiny with robust portfolio segmentation, a variety of CECL-compliant loss-rate methods and a comprehensive suite of reports and disclosures. No longer does monthly or quarterly reserve estimation have to be a manual, time-intensive process. With nCino, FIs have a partner that helps reduce regulatory burden and identifies the right loss rate methods to fit each institution's unique needs.
CECL - Compliant Loss Methods
Estimate losses over the life of the asset by incorporating collateral values, key economic variables, loan and borrower level attributes by asset type.
Calculate losses at a historical point in time by taking the losses from the pool, divided by the starting balance of the pool.
Enhance vintage segmentation by current credit quality and longer charge-off histories for revolving loan types.
Track multiple historical loan pools broke out by credit quality indicator (CQI) and aggregate to find the percent of current balance expected to not be collected.
Analyze expected cash flows for each future period of a loan's life by estimating the probability of default, the probability of prepaying, and the probability of staying active.
Determine losses by segmenting the portfolio into vintages and dividing historical losses by the appropriate balance and then weighting the results.
Observe historical behavior to model movement across delinquency levels and the findings are applied to the current delinquency profile of the class.
Combine average annual charge-off ratio with anticipated pay-downs to estimate lifetime expected loss.
To learn more about how nCino's ALLL / CECL solution is implemented download the implementation guide here.Download