The impact of more detailed CECL calculations.

Edge completed a CECL calculation on a particular $25mm portion of a bank’s CRE portfolio using our analytics platform to compare their CECL calculation to the Edge calculation. We incorporated detailed, loan-level analytics, default characteristics, and recovery data to generate a strong and defensible CECL calculation that was substantially less than the bank’s own calculation.

The results were astounding. Not only did more granular analytics return a much lower CECL calculation, but our tool also identified several loans within the portfolio that were extreme outliers. Below is a summary of the results.

This is just one example of how more granular analytics are easier to access and yield better results.

Are you confident in the data you are counting on to make decisions regarding your organization? Let Edge Tradeworks give you a fresh perspective.