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In today’s current economic environment, managing the Commercial and Consumer Loan Portfolio is paramount in order to maintain a safe and sound financial institution. The five regulatory agencies are becoming more demanding in their review of banks in light of the recent large bank failure that occurred on the west coast and the increased number of banks currently on their “Trouble Bank” list.
2023 Loan Portfolio Management & Review
Loan Portfolio Management & Review: Reviewing Your Loans and Mending Fences
Friday, April 28, 2023
8:30 AM - 4:00 PM (EDT)
This class will be virtual.
Event Details
Contact a Professional Development Associate for more details. Click here for the registration & cancellation policy.
Loan Portfolio Management & Review: Reviewing Your Loans and Mending Fences Before the Regulators Arrive
In today’s current economic environment, managing the Commercial and Consumer Loan Portfolio is paramount in order to maintain a safe and sound financial institution. The five regulatory agencies are becoming more demanding in their review of banks in light of the recent large bank failure that occurred on the west coast and the increased number of banks currently on their “Trouble Bank” list.
It has not been since the real estate market crisis experienced during the late 1980’s that bankers are forced to manage in such a tough market. We are now seeing the return of a similar real estate market collapse caused by stagnate newly constructed and existing real estate sales; subprime mortgage loans that are re-pricing and causing financial strain on consumers; higher fuel prices and its impact on the bank’s loan portfolio; increasing consumer debts and a return to the pre 2005 bankruptcy law rate of bankruptcy filings.
Managing the loan portfolio in the face of these factors requires a different approach than in normal times. This one-day program is designed for anyone with management responsibilities of a part or the entire bank’s Loan Portfolio.
The program begins with a discussion of those Macro Economic, Industry, Business and Management factors that must be considered as part of loan portfolio management then followed by examining the quality of credit file documentation, which includes an assessment of the Credit Memorandum and Loan Documentation; then, followed by a discussion on effective management tools required to navigate the bank through today’s challenges.
Specifically, the course will cover the following areas:
Specifically, the course will cover the following areas:
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Review Regulatory Guidance to Ensure Internal Loan Review Meets the Standards Set by Regulating Agencies
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Review the Steps in Performing a Loan Review including: Review of Essential Loan Documentation to Identify the Borrower & Collateral; to Evidence the Debt; to Attach the Collateral and to Perfect a Security Interest in the Collateral.
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Review the Requires for a Proper Financial Statement Analysis Including Ratio Analysis and Cash Flow Analysis for Commercial and Industrial Loans and Commercial Real Estate Loans in order to Determine Creditworthiness
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Review Requirements of What Should be Expected in an Effective Credit Memorandum
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Review Effective Methods of Performing an Internal Loan Review including: the Loan Review Process, Required Reports and Distribution of the Reports
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Review the Requirements of an Effective Loan Risk Rating System Utilizing a Clear, Measurable and Objective loan grading system
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Establish the Ability to Identify Loans That May Require Trouble Debt Restructure Classification and Effective Ways to Manage Them
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Methodology Required for Calculating the Allowance for Loan and Lease Losses in Accordance with the Current Expected Credit Loss Model
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Review the Expectations of Loan Review in Community Banks
Who Should Attend:
This course is designed for anyone with management responsibilities of a part or the entire bank’s Loan Portfolio including:
- Senior Credit Officers/Risk Managers
- Senior Loan Officers
- Commercial & Consumer Loan Officers
- Loan Review Officers
- Directors
- CEOs & Presidents
Instructor