Prism: The ALLL Calculator

Now, more than ever, community banks find themselves struggling to meet the stringent standards of accountability and risk management by regulators that leading financial organizations have striven to adhere to for over a decade. The Allowance for Loan Losses (”ALLL”) represents one of the most important methods to counter the credit risk a bank faces. Each institution is held accountable for developing and documenting a comprehensive, systematic and consistently maintained process to estimate the validation of ALLL in their financial statements and regulatory reporting purposes.

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PRISM is P&G Associates’ premier Allowance for Loan Losses calculator. Utilizing a dynamic and intuitive process which allows an institution to use and document reserve percentages for specific risk categories based on historical loss percentages as adjusted for various qualitative factors, PRISM provides a step-by-step process to document an institution’s assessment of such factors. The application accounts for data, factors (both internal and external) and variables that could affect an institution’s ALLL estimate, and its easy-to-use interface provides guidance on what should be inputted into your calculation to ensure the best estimate possible.

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PRISM takes the often hard, complex and diverse issues faced in an accurate ALLL estimation and streamlines them into an efficient, straight-forward process that ensures control over one of the most pertinent risks to any bank.

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The application is consistently maintained and updated based on current national economic data and factors, historical loss trends and peer analysis. PRISM works around the clock to ensure that you are not left behind due to shifting regulatory emphasis, and is a program that will evolve to match both the needs of your financial institution and the regulations that require excellence.

Sign-up today to see why PRISM is right for you!

Focus Your Efficiency

  • A streamlined, dynamic and intuitive calculator that accounts for all data and factors that affect your ALLL estimation, and utilizes methodology which has been specifically designed to meet the FFIEC interagency requirements for the development of an ALLL reserve
  • A web-based, easy-to-use interface that provides guidance on what information to input for the most accurate calculation
  • Provides a centralized database which provides transparency, consistency and eliminates the use of spreadsheets which can often be outdated.
  • Consistently maintained and updated to evolve with the shifting regulatory emphasis that financial institutions face today
  • Maintains a national, and geographic-based, economic database which is applied to specific pools of loans with homogenous risk characteristics
  • Validation analysis allows you to track your ALLL against various industry and peer group benchmark
  • A cost effective and practical solution to meet the complex and challenging need of financial institutions

To learn more, contact us at 1-877-651-1700 or click here to Request More Information.

What Subscribers Have To Say

"Prism has saved me a full day in preparation time. What previously took an entire work day, now takes less than an hour."

"The cost effectiveness of PRISM can be measured by the tremendous amount of preparation time saved, and the comfort knowing that the format and content of the PRISM reports should easily withstand any regulatory or accounting scrutiny."

– Ferdinand Viaud, Executive Vice President and Chief Financial Officer, Glen Rock Savings Bank

"Customer service is outstanding...whenever I have a question, there's someone who could address anything that comes up."

"Most recent exam was a couple weeks ago. It's been a positive experience. The examiners were familiar with the program which was helpful, and they understood it. And most important thing, he accepted it."

– Anthony Capobianco, President, American Community Bank

"PRISM gives us a solid methodology that we can rely upon to calculate ALLL and we're able to provide to regualtors documentation to support a calculation that they found accptable."

"I'm happy that it's constantly being updated and improved to take into consideration the regulatory environment and concerns."

– Cathy Califano, First Vice President and Chief Financial Officer, First Central Savings Bank

"The report does a lot of comparison analyses with peer groups. It gives you an idea of where you are with your peers."

"I enjoy reading where everything is going. It's also a good strategic tool because you always see where you are in the market place - are you doing better or worse?"

– Charles Kohler, Executive Vice President, Alma Bank