While early results suggested banks would see steep declines in first quarter earnings, Century Bank yesterday reported a 2.6 percent increase in net income compared to the first quarter last year.
The Federal Accounting Standards Board voted on Oct. 16 to delay the new CECL (current expected credit loss) standard for some companies.
Following a vote last month, the Financial Accounting Standards Board yesterday formally issued its proposal to delay the deadline for many banks, credit unions and other smaller companies to delay implementing a new accounting standard that would dramatically change how lenders would treat loans.
Many banks and credit unions will have additional time to prepare for the new Current Expected Credit Loss accounting system after the Financial Accounting Standards Board recently voted to delay implementation for a select group.
The banking industry has been deeply concerned over the impact CECL would have on total reserves and capital. But after first quarter earnings many New England community banks expect their reserves under CECL will be the same, if not smaller, than under the current incurred model.
