Deputy Seminar, Denver, CO

Comparison to Existing Guidance

• Current Guidance

• ASU 2016-13

Topic

Scope

Topic Scope ASC 326-20 Financial Instruments - Credit Losses - Amortized Cost (CECL)

ASC 450-20 (FAS 5)

Contingencies - Loss Contingencies

ASC 310-30

Receivables - Loans & Debt Securities - Acquired with Deteriorated Credit Quality

ASC 326-30

Financial Instruments - Credit Losses - AFS Debt Securities

ASC 310-10 Receivables - Overall ASC 320-10 Investments - Debt Securities

CECL Key Highlights

 Recognize estimate expected credit losses over  Remaining contractual life based on  Historical experience  Adjustment for current conditions  Adjustments for reasonable & supportable forecasts  Contractual life considers expected prepayments but excludes  Expected extensions, renewals & modifications unless expected to happen in a TDR