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CECL Q&A - Segmentation

Abrigo

Figure 1: Improper segmentation can shift overall loss rates and would not be truly representative of actual losses under proper segmentation. Management will need to evaluate pools on an ongoing basis to ensure that the underlying assets continue to exhibit similar risk behavior.

CECL 60
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Ag Lenders: Cultivate Growth with Effective Pricing, Structure

Abrigo

At the same time, you don’t want to unintentionally create actual losses before you have to. Given the uncertainty and recent trends, ag lenders will want to monitor loan portfolios carefully and work with borrowers, Newberry said. You don’t want to throw good money after bad money,” he said. “At