Changes to Acquired Financial Assets under CECL – PCD to PFA

Abrigo Team members will discuss a current Technical Agenda item from the FASB that will result in changes to purchase accounting under CECL. Topics will include an overview of the proposed changes from Purchased Credit Deteriorated (PCD) to Purchased Financial Assets (PFA), expected timing of the ASC update, and practical considerations that financial institutions need to take to prepare. This change to the CECL standard will be significant for institutions that have or are expecting to engage in M&A activity.

Speakers

Derek Hipp has over 12 years of experience in public accounting and consulting, specializing in financial institutions. He is a co-founder of the ValuCast™ suite of software solutions and is a Director on the consulting and advisory services team of Abrigo, formerly Valuant. Derek specializes in Day 1 valuation and due diligence services, Day 2 accounting, allowance for loan loss services, historical loan prepayment speed analyses, and historical deposit studies. He has recently assisted clients in preparing for CECL by providing readiness activities and implementing the ValuCast™ Suite-CECL SaaS solution. Prior to founding Valuant, Derek worked in a consulting practice for a top 30 accounting firm and as an external auditor for financial institutions.

Neekis Hammond, Abrigo’s Managing Director of Advisory Services, uses his unique expertise and 15+ years of experience in accounting/banking to help banks and credit unions develop strategies for navigating regulations efficiently. A licensed CPA, he specializes in the ALLL/CECL, stress testing, and portfolio analysis. Prior to joining Abrigo, Neekis worked in public and industry accounting, including as a Consultant with Elliott Davis Decosimo providing M&A-related consulting to financial institutions.

Josh Stein joined the American Bankers Association in October 2017. He works alongside Mike Gullette in the ABAs efforts with FASB and the U.S. banking regulators in helping bankers understand and implement policies and regulations related to accounting, financial reporting, internal controls, and capital management. Specifically, Josh is working on efforts related the implementation of FASB’s CECL standard as well as a variety of other areas such as TDRs, Goodwill, and other standards or regulations that will impact bank accounting and auditing. Josh brings to the ABA almost twenty years of experience. Josh started his career as an auditor for KPMG, where he concentrated on financial institutions. He worked as an analyst and an inspector for the PCAOB. He also worked in an accounting policy position at a large private equity firm.