Benzinga | Mar 3, 2021 08:05AM EST

Vista Bank Selects Moody's Analytics ImpairmentStudioTM Solution for ALLL and CECL

Moody's Analytics today announced that Vista Bank has selected the ImpairmentStudio solution to help it address Allowance for Loan and Lease Losses (ALLL)/Incurred Loss policies and the Current Expected Credit Loss (CECL) accounting standard. The Dallas-based community bank has also chosen the Moody's Analytics CMMTM solution to proactively stress-test its lending portfolio.

Banks and credit unions use the ImpairmentStudio solution to automate allowance calculations, analysis, reporting, and workflow processes for ALLL and CECL. This gives financial institutions the transparency they need to better manage the transitions for both their internal and external stakeholders. The ImpairmentStudio solution also supports a range of methodologies and loss-forecasting models adapted to each institution's unique profile.

Vista Bank selected the CMM solution to stress-test multiple property types in its lending portfolio and more thoroughly evaluate new loans in the origination process, with a goal of minimizing risk for stakeholders. Banks can also use the CMM solution to rank-order their portfolio risk for a more precise risk metric within their numerical grading system--particularly beneficial as the COVID-19 crisis continues.

Both solutions rely on Moody's Analytics integrated scenarios, which help our customers anticipate COVID-19's impact across asset classes and geographic locations, all the way to the local level.

"Having a single platform that calculates our current ALLL and future CECL metrics, when we begin reporting under the new standard, is a game-changer," said Vista Bank Chief Financial Officer Robert Bruce. "Similarly, having more granular commercial real estate risk ratings will help us make even stronger lending decisions in the years ahead. This is especially important given the fluid market conditions caused by the pandemic."

"Community banks and regional lenders must be able to access all the information they need--both under the current ALLL framework and as they get ready for CECL," said Eric Ebel, Managing Director at Moody's Analytics. "Our solutions combining best-in-class Moody's Analytics scenarios, analytics, and technology are specifically designed for that purpose and to deliver the insights our customers need to navigate this challenging environment."