Financial Accounting News

Regions Warns of Big Boost in Loss Reserves Under New Rules

Aug. 8, 2019, 4:26 PM

Regions Financial Corp. expects to boost its loan loss reserves significantly once major new rules on tallying expected losses go live in 2020.

The company in its Aug. 7 quarterly filing said it would have to increase its current $903 million loan loss reserve by $400 million to $600 million—an increase of 44% to 66%—under the current expected credit losses (CECL) accounting standard.

The Birmingham, Ala.-based bank is among the first regional banks to put a number on how the biggest change to bank accounting in decades will affect its bottom line. Its estimate is also among the highest; PNC...

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