Key Takeaways from the 2026 AICPA Banking & Credit Union Conferences
The 2026 AICPA Conference on Banks and Savings Institutions and the AICPA Conference on Credit Unions brought together regulators, standard setters, economists, industry executives, and accounting professionals to discuss the forces shaping the future of financial institutions. While the sessions covered a broad range of topics, several common themes emerged throughout the conference. From regulatory reform and evolving accounting standards to artificial intelligence and economic uncertainty, the message was clear: financial institutions must continue to adapt to a rapidly changing environment while maintaining strong governance, risk management, and strategic discipline.
Regulators Signal a Shift Toward More Targeted Supervision
Representatives from the Federal Reserve, FDIC, OCC, and NCUA described a supervisory environment that is becoming increasingly risk-focused and transparent. Agencies emphasized efforts to tailor supervision to the risks presented by individual institutions, reduce unnecessary burden, modernize examination processes, and focus regulatory attention on matters that pose a meaningful risk of financial harm. Areas receiving continued regulatory attention include commercial real estate concentrations, liquidity management, interest rate risk, fraud prevention, cybersecurity, third-party risk management, and the governance of emerging technologies.
For community banks and credit unions, the message was not one of deregulation, but rather one of smarter regulation. Institutions should expect regulators to continue focusing on safety and soundness fundamentals while seeking opportunities to remove administrative complexity and improve supervisory transparency.
This theme also appears consistent with what many institutions are experiencing in practice. Several banks noted that ongoing dialogue with regulators has become more collaborative and targeted, with examination and monitoring activities increasingly focused on institution-specific risk profiles rather than a one-size-fits-all approach. While expectations around safety and soundness remain unchanged, many industry participants indicated that this shift has improved transparency and reduced unnecessary examination burden during the periodic review process.
CECL Remains Under the Microscope
Perhaps no accounting topic generated more discussion than the ongoing post-implementation review of the Current Expected Credit Losses (CECL) standard. Both regulators and Financial Accounting Standards Board (FASB) representatives acknowledged significant stakeholder feedback regarding the operational burden associated with CECL, particularly for community financial institutions. The FASB continues to evaluate that feedback through surveys, outreach activities, and discussions with preparers, auditors, investors, and regulators.
Importantly, conference participants generally expressed the view that CECL is unlikely to be repealed despite ongoing debate regarding its costs and benefits. Conference discussions highlighted continued tension between efforts to simplify CECL implementation and supervisory expectations surrounding model governance and documentation. While many stakeholders have urged consideration of targeted relief for community institutions, some participants observed that heightened scrutiny from auditors and regulators following CECL adoption has driven banks to continually expand supporting documentation, model validation practices, and qualitative factor analyses. As a result, concerns regarding implementation costs and operational burden remain prominent, particularly among smaller institutions. Financial institutions should continue investing in the development and documentation of reasonable and supportable methodologies while monitoring the results of the FASB’s review process.
Several FASB Projects Could Significantly Affect Financial Institutions
The FASB highlighted a number of projects that have particular relevance to banks and credit unions. Among the most notable are broad efforts to reconsider hedge accounting, proposed guidance involving stablecoins and cash equivalents, disclosures related to private credit investments, mortgage servicing rights, goodwill impairment testing, and changes to the equity method of accounting.
The ongoing hedge accounting project generated considerable interest, particularly from community and regional institutions. FASB representatives indicated a willingness to reconsider aspects of the current model that may discourage institutions from entering into prudent risk management activities. The newly released accounting standards update focusing on mortgage servicing rights looked to standardize diversity in practice over the treatment of recapture rights, which you can read more about in our article HERE.
The FASB also noted it is currently researching potential changes to the statement of cash flows aimed at improving its decision usefulness for financial statement users. One area under consideration is whether certain financial institutions, including banks, could provide alternative disclosures that may replace the traditional statement of cash flows, recognizing that cash flow information for financial institutions is often less meaningful than for non-financial services entities. The Board is also evaluating other broader improvements to cash flow reporting, although research remains ongoing and no specific accounting changes have yet been proposed.
Conference participants emphasized the importance of community financial institutions participating in the standard-setting process to ensure their perspectives are considered as these proposals evolve.
Artificial Intelligence Has Moved Beyond Experimentation
Artificial intelligence was one of the most discussed non-accounting topics at the conference. A clear consensus emerged that AI is transitioning from isolated pilots and proof-of-concept initiatives to broader enterprise deployment. Speakers described a future in which AI becomes embedded throughout organizational processes, including customer service, software development, accounting, financial reporting, risk management, and operational support functions.
However, conference participants repeatedly stressed that successful AI implementation is not primarily a technology challenge. Rather, it is a governance challenge. Institutions were encouraged to establish clear accountability structures, maintain robust data governance practices, develop board-level oversight, and ensure that human judgment remains central to decision-making processes. As AI adoption accelerates, the importance of professional skepticism, explainability, and effective controls will only increase.
Digital Assets Continue Their March Toward Mainstream Adoption
Digital asset discussions have evolved significantly from prior years. The focus has shifted away from speculative cryptocurrency activity and toward practical applications involving payments, settlement, custody, tokenization, and stablecoins. Regulators discussed implementation efforts related to the GENIUS Act, while industry participants explored how digital assets might become integrated into traditional financial infrastructure.
While significant regulatory questions remain, the conference highlighted growing acceptance that digital assets are likely to become a permanent component of the financial services ecosystem. Institutions evaluating these opportunities should continue focusing on customer needs, strategic alignment, governance, cybersecurity, compliance, and liquidity implications rather than technology adoption for its own sake.
Economic Conditions Present Both Opportunities & Risks
Economic forecasts presented during the conference reflected cautious optimism. Speakers generally expect continued economic growth over the next several years, supported in part by investments related to artificial intelligence and data infrastructure. However, economists also identified several emerging risks, including persistent inflationary pressures, slower labor market growth, elevated government debt levels, housing market stagnation, and the possibility of volatility in equity or Treasury markets.
For financial institutions, the current environment requires balancing opportunities for growth with prudent risk management. Interest rate risk, funding strategies, liquidity management, and credit quality monitoring will remain critical focus areas as institutions navigate an uncertain economic landscape.
Mergers & Acquisitions Show Renewed Momentum
Conference participants noted increasing optimism regarding merger and acquisition activity. Regulatory approval timelines appear to be improving, creating opportunities for institutions seeking strategic growth, succession planning solutions, balance sheet repositioning, or greater scale. However, speakers consistently cautioned that faster regulatory approvals do not reduce the importance of thoughtful preparation and execution.
Successful transactions continue to depend on thorough due diligence, strong governance, cultural alignment, effective integration planning, and careful consideration of accounting and financial reporting implications. Institutions that maintain strategic readiness before an opportunity arises will be best positioned to take advantage of future consolidation opportunities.
Looking Ahead
The overarching theme of the 2026 conferences was adaptation. Financial institutions are simultaneously confronting changing economic conditions, evolving regulatory expectations, emerging technologies, and significant accounting developments. While the specific challenges facing each institution may differ, the organizations best positioned for success will likely be those that remain engaged in the standard-setting process, invest in governance and risk management, and proactively prepare for change rather than simply react to it.
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This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
