CECL Back-testing Results

At Wilary Winn, we continuously back test our CECL models to ensure they deliver reliable and predictive results. Our back-testing analyses compare expected annual losses from our models to actual net charge-offs recorded by year.

The results show that our models are highly predictive:

• For the year 2023, we predicted 0.40% of losses – actual net charge-offs were 0.39%.
• For the year 2024, we predicted 0.68% of losses – actual net charge-offs were 0.63%.

These findings validate the precision of our model in forecasting credit losses, reinforcing its value in helping financial institutions manage risk with confidence.