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

Rhea-AI Summary

Moody’s Analytics announced that Vista Bank has adopted its ImpairmentStudio solution for managing Allowance for Loan and Lease Losses (ALLL) and Current Expected Credit Loss (CECL) accounting standards. Additionally, Vista Bank will use Moody’s CMM^TM solution for stress-testing its lending portfolio. These tools enhance transparency and risk management amid ongoing market uncertainties, especially with the COVID-19 crisis. Vista Bank's CFO highlighted the significance of these solutions for improved decision-making in a challenging environment.

Positive

• Vista Bank adopted ImpairmentStudio to streamline ALLL and CECL management.
• CMM solution enhances stress-testing capabilities for Vista Bank's lending portfolio.
• Solutions provide better transparency and risk assessment amid market uncertainties.

Negative

• None.

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 CMM^TM 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.”

About Moody’s Analytics

Moody’s Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs. For more information about Moody’s Analytics, visit our website or connect with us on Twitter and LinkedIn.

Moody's Analytics, Inc. is a subsidiary of Moody's Corporation (NYSE: MCO). Moody's Corporation reported revenue of $5.4 billion in 2020, employs approximately 11,400 people worldwide and maintains a presence in more than 40 countries.

About Vista Bank

Established in 1912, Vista Bank operates 15 locations throughout West Texas, Austin, Dallas, and Fort Worth. With CEO John Steinmetz at the helm, the bank experienced 550% disciplined and organic asset growth in the last decade, breaking into the top 100 Texas banks by asset size in 2018. One of the top 25 North Texas Paycheck Protection Program funders and one of the few Texas banks to have participated in the Main Street Lending Program, Vista Bank delivered critical relief funds to small and middle-market companies, helping to keep our Texas economy strong. With a rich 108-year history of entrepreneurs banking entrepreneurs, Vista Bank operates more like a start-up than a traditional bank; offering innovative solutions to personal and commercial clients alike while never sacrificing our top priority: People First.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005284/en/

FAQ

What is Vista Bank's recent partnership with Moody's Analytics for?

Vista Bank has partnered with Moody's Analytics to utilize ImpairmentStudio for managing ALLL and CECL standards and CMM for stress-testing its lending portfolio.

How will Moody's ImpairmentStudio benefit Vista Bank?

ImpairmentStudio will automate allowance calculations and improve transparency for Vista Bank's risk management processes.

What is the significance of the CMM solution for Vista Bank?

The CMM solution will help Vista Bank stress-test multiple property types in its lending portfolio, minimizing risks associated with loan origination.

What impact does COVID-19 have on Vista Bank's operations according to the press release?

The tools provided by Moody's Analytics help Vista Bank anticipate COVID-19’s impact on asset classes and geographic locations, enhancing risk management.

What is the goal of implementing Moody's Analytics solutions at Vista Bank?

The goal is to strengthen lending decisions and ensure compliance with ALLL and CECL accounting standards amid fluid market conditions.