Manager of CECL and Loan Stress

Veritex Bank - Dallas, TX

Full-time - Manager

Dallas, TX

1-10 employees

About the position

The Manager of Current Expected Credit Loss (CECL) and Loan Stress Testing is responsible for leading the company's Allowance for Credit Losses (ACL) and Loan Stress Testing Programs. This role involves managing policies, processes, and technology solutions related to CECL and loan stress testing models, ensuring compliance with accounting standards and regulatory requirements while providing strategic insights to support the company's financial health.

Responsibilities

• Oversee all aspects of the ACL Program for loans and HTM securities to ensure effective execution and compliance.
• Regularly review and recommend changes to the ACL Program and Policy.
• Lead the development, validation, and maintenance of CECL model and loan stress testing models.
• Analyze data to forecast expected credit losses and recommend quarterly provision amounts.
• Ensure CECL processes comply with regulatory and accounting standards (e.g., FASB, SEC).
• Maintain key control activities relevant to SOX and the Bank's Enterprise Risk Management Framework.
• Prepare detailed reports for internal and external stakeholders, including regulators and auditors.
• Collaborate with departments to communicate CECL findings and implications.
• Advise executive leadership on credit loss methodologies and loan loss reserves.
• Lead the monitoring of models used for expected credit loss estimation.
• Conduct scenario analysis to estimate the effects of changes in forecasts and assumptions.
• Support capital planning processes by modeling credit losses under stress scenarios.
• Identify and implement process improvements and best practices in CECL management.
• Develop training programs for key stakeholders on CECL requirements and methodologies.
• Provide subject matter expertise on CECL-related issues, partnering closely with the Chief Accounting Officer, Chief Financial Officer and Chief Credit Officer.
• Stay current on industry developments and provide recommendations for continuous improvement.
• Collaborate with IT to ensure systems incorporate appropriate data inputs and information security controls.
• Understand requirements of CRE stress testing in sufficient depth to become a subject matter expert skilled in assisting with the management of certain components of the Program operations workflow and to assist with educating participants (‘stakeholders') as to their roles and responsibilities within the annual Program cycle.
• Develop recurring analytics for all CRE stress model inputs, outputs, market, and scenario data to provide stakeholders with actionable insights regarding drivers of stress testing results.
• Draft documents, exhibits, analyses, and flowcharts in support of the CRE Stress framework, governance, and executable processes.

Requirements

• Bachelor's degree in Finance, Accounting, Economics or other quantitative disciplines required.
• 7-10 years of experience in the financial industry, with specific experience in banking credit risk management, financial modeling, or a related field.
• Proficiency in financial modeling, and relevant software tools (e.g., Abrigo, Excel).
• Strong understanding of the CECL accounting standard and relevant accounting standards (e.g., GAAP).
• Must have strong proficiency with Microsoft Office suite, with advanced Excel skills strongly preferred.
• Excellent problem-solving skills.
• Strong technical and analytical skills.
• Able to organize, coordinate, and direct projects.
• Solid oral and written communication abilities.
• Strong work ethic with solutions-minded and team-oriented character.

Nice-to-haves

• MBA or master's degrees in Finance or other quantitative disciplines is a plus.