With Visible Equity's software it is easy to create custom segments and classes for use in your allowance analysis and reporting. Whether you're looking forward to new CECL requirements or performing more traditional allowance calculations, properly segmenting your portfolio forms the basis for solid analysis. Our software allows you to individually review and collectively review loans. Any asset that does not share similar risk characteristics with a suitable class should be reviewed on an individual basis using either discounted cash flow, fair value less cost to sell, or other appropriate loss estimation methods. Any loans that share similar risk characteristics on a collective basis using the selected segmentation strategy and appropriate CECL loss methods and adjustments. One of the biggest changes CECL will bring to your allowance calculations is the use of “life of loan” loss methods as opposed to traditional one-year charge-off ratios. Visible Equity provides the following CECL-compliant life of loan loss methods:
Static Pool is the simplest of the CECL methods Visible Equity offers, but sometimes the simplest solution is the best solution. The Static Pool method looks at a historical point in time to create a static pool. The loss rate is calculated by taking the losses from the pool, divided by the starting balance of the pool. The Vintage method uses your historical data, just like static pool, but puts a finer point on the calculation. The Vintage method calculates a different loss rate for each vintage (origination year) and each future period of the loan’s life. Loss rates are calculated by segmenting the portfolio into vintages and dividing historical losses by the appropriate balance and then weighting the results. Our Probability of Default models are simply awesome. With different models for each asset type (residential mortgages, home equity lines of credit, credit cards, auto loans, student loans, commercial real estate, commercial and industrial loans, etc.), we give you a powerful, predictive solution to CECL requirements. Our PD models seamlessly incorporate collateral values; key economic variables, including reasonable and supportable forecasts; and loan and borrower level attributes to estimate losses over the life of the asset. The best part is you don’t need a lot of historical data because we have built the models for you!
Loss Migration - Tracks multiple historical pools of loans broken out by CQI and aggregates to get a percent of current balance expected to not be collect. Think of it as doing Static Pool by CQI, but instead of just isolating the active loans from one point in time, we use multiple points in time and observe multiple pools. Our Discounted Cash Flow models take discounted cash flow (DCF) analysis to a new level. Instead of relying on loss rates to estimate the portion of cash flows that won’t be collected, we use our state-of-the-art PD models. Cash flows are estimated for each future period of a loan’s life by estimating the probability of default, the probability of prepaying, and the probability of staying active. The results of each loan’s analysis are rolled up to arrive at the expected cash flows for the portfolio. Roll Rate is motivated by the progression of loans through various stages of delinquency and subsequent default. Historical behavior is observed to model movement across delinquency levels, and the findings are applied to the current delinquency profile of the class. We also provide traditional charge-off ratios for easy comparison between current allowance methodologies and CECL-compliant methodologies.


  • Multiple Allowance Profiles
    Create multiple allowance profiles to easily compare results of different loss methods, including your current ALLL methodology.
  • Custom Segmenting
    Create custom segments, classes (sub-segments), and credit quality indicators.
  • Individually Review
    Individually review loans using discounted cash flow, fair value less cost to sell, or other methods, and incorporate the results into your allowance calculations and reporting.
  • Collectively Review
    An allowance calculation using “life of loan” loss methods, instead of a more traditional 1-year charge-off ratio.
  • Multiple CECL-Compliant Loss Methods
    Mix and match by class (sub-segment) using our state-of-the-art, CECL-compliant loss methods, including Static Pool, Vintage, Probability of Default, Discounted Cash Flow, and more.
  • Direct Adjustments (Q&E)
    Create direct adjustment profiles that use standard or custom qualitative and environmental factors to adjust your base loss rate.
  • Forecast Adjustments*
    Select the desired economic variables, then use our professional forecasts (or your own) and our CECL forecast models to calculate the adjustment to base loss rate.
  • Reporting
    Easily access standard reports from our report library, or build custom reports including required disclosures. Combine reports to create CECL-specific report packets.
  • *Contact Visible Equity for current availability
Data Warehousing
Store and manage all your data in one location. Data warehousing is the first pillar of our platform. We aggregate data from your core processor, third party processors, loan origination software, even your spreadsheets into our secure, accessible data warehouse. You get an unlimited amount of storage, access to your data 24/7, and unlimited users, queries, exports.
We make state-of-the-art analytics easy, affordable, and accessible for banks, credit unions, and financial institutions of all shapes and sizes. Powerful analytics is the second pillar of our platform. We infuse your data with our advanced analytics to create the perfect recipe for analytic success! Whether you are analyzing risk, estimating losses, or looking for predictive marketing, we are committed to our goal of using analytics to help our clients make better, data-driven decisions.
Reporting & Visualization Software
Create actionable dashboards and custom reports. Once we have your data and we infuse our data and analytics, we’re ready to create some amazing reports with the third pillar of our platform - reporting software. Our software allows you to easily create and save lists, filters, and actionable dashboards and reports to help better understand and communicate key results. We work hard to make our reports be insightful and look professional. The software is available 24/7 with no per user, per report, or per anything fees.
"In advance of our recent NCUA examination, Visible Equity’s client success team helped me create a report set for our examiners. I appreciate the efficiency and thoughtfulness they demonstrated in responding to our inquiry and resolving our problem."
Tom Boos
CEO at Billings FCU
"We have been with Visible Equity since 2013. Since then we have decided to have them help us develop our CECL model. They have a very extensive library of standard reports and a very robust report-writing functionality if you choose to create your own reports."
Dean Uemura
EVP Support Services at Hawaii Community FCU
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