COVID-19’s adverse impact on loan performance and current CARES Act financial reporting and disclosure relief arrived simultaneous to the implementation of the controversial Current Expected Credit Losses (CECL) accounting standard for loan-loss reserving. Analysis and comparisons would have been difficult under any of these circumstances. However, the interplay of all three factors has made analyzing bank loan performance and reserving levels even more difficult.

BRG’s Financial Institutions Advisory practice created the CECL Reserving and Credit Benchmarking Quarterly Study to compare allowance levels, charge-offs, nonperforming loans (based on CARES Act classification/reporting relief), COVID deferrals, and other key credit metrics across multiple predominately domestic US institutions.

This second study in our series continues to analyze the same twelve representative banks that appeared in our inaugural study. These banks have total assets as of September 30, 2020, ranging from $31 billion to $462 billion (and a $99 billion median).

Read the full report.

View the report for Q2 2020.