While asset quality continues to be generally sound industrywide, concerns over deteriorating underwriting standards and credit concentrations continue to attract significant regulatory attention, accounting for the largest share of matters requiring attention (MRAs) and matters requiring board attention (MRBAs).
Regulators will evaluate the quality and depth of financial risk and underwriting analysis, including the awareness of existing or emerging risk concerns, stressing for an uncertain future, tying current underwriting and new deals to the institution’s risk appetite statement, and adequacy of post-funding monitoring and analysis.
CAMELS ratings are now forward-looking. Therefore, lenders with historically low delinquencies and charge-offs will no longer automatically get a “1” asset quality rating. It’s expected that the credit analysis process will be based on the complexity of the credit and each institution’s risk profile. This program will focus on regulatory credit issues and provide insight on preparing for your next safety and soundness exam.
- Areas of examiner concern
- Documentation for Cs of credit
- Cash flow and liquidity analysis – more than just EBITDA
- Lack of loan policy guidance and failure to adhere to written policy
- In-depth analysis of risk, based on the complexity of the credit relationship
- Identifying policy exceptions and analyzing risk mitigations
- Economic and business uncertainty
- Expectations for stress testing debt service coverage
- Loan structuring, including on-going monitoring
- Annual financial statement collection
- Documented support for conclusions and assigned credit risk grade
- CRE lending, including concentration management
- Employee training log
- Quiz to measure staff learning and a separate answer key
WHO SHOULD ATTEND?
This informative session is designed for everyone that is involved in the underwriting and approval of commercial loans, including executive management on the loan approval committee, commercial loan officers, credit analysts, commercial loan underwriters, branch managers with commercial lending authority, loan reviewers, and auditors.
PLEASE NOTE: The live webinar option allows you to have one telephone connection for the audio portion and one Internet connection (from a single computer terminal) to view online visuals as the presentation is delivered. You may have as many people as you like listen from your office speaker phone.
ABOUT THE PRESENTER – S. Wayne Linder, Young & Associates, Inc.
A thirty-year banking veteran, Wayne Linder was formerly the CEO of a community bank. As a Senior Consultant with Young & Associates, Wayne works as a lending and management consultant. He assists financial institutions under regulatory enforcement agreements, develops and implements written lending policies, and develops educational material for in-house lending training. Wayne is a popular seminar speaker with both national and international experience.
- Live - $245
- Recorded and Digital Download - $245 plus tax
- Live, Recorded and Digital Download - $320 plus tax