We offer a multitude of loan review services to small, mid-sized and large community financial institutions. These services can be tailored to each institution and focus not only on the accuracy of risk ratings, but also the effectiveness of loan underwriting and approval, and loan administration processes as well.
Our written reports are more than just a compilation of work papers and boilerplate statistics. Our reports give the Board and executive management thoughtful insight into the quality of the portfolio and its administration.
Loan Review is a primary responsibility for executive management and Boards of Directors as they supervise and manage estimated credit risks associated with their institution’s strategic assets. Loan portfolios are a key indicator of the overall health of an institution. Loan portfolios contain the most significant group of earning assets on the balance sheet and as such carry the greatest amount of risk.
Loan Review assignments require a depth of knowledge and understanding of current industry and regulatory standards, as well as credit risks in borrower profiles, underwriting, loan structure, economic trends, and portfolio administration processes.
We conduct hundreds of Loan Reviews that demand keen, objective assessments of the entire credit risk management process. Our professional consultants each possess on average over 30 years of financial institution credit examination or lending experience. Our team is well prepared to provide in-depth portfolio analysis with recommendations to improve credit quality and administration.
We conduct Loan Reviews onsite or offsite through secure remote network connections. We handle our work discreetly without interrupting daily operations.
Since the 2008 recession, approximately 500 financial institutions have failed, with the majority failing because of loan problems. Today, financial institutions recognize the importance of conducting periodic independent loan reviews and consulting with qualified experts, such as ProBank Austin, to identify and control credit risks.
Loan reviews may include the following:
- Overall Evaluation of Portfolio Quality
- Evaluation, Adequacy, and Compliance with Written Policies
- Review of Credit Administration, Underwriting, and Approval Processes
- Analysis of Borrower Financial Statements
- Evaluation of Collateral
- Verification of the Perfection of Security Interests
- Review of Compliance with Lending-Related Safety and Soundness Laws and Regulations
- Training of Internal Loan Review Personnel
- Establishment of a Loan Rating System
- Validation of the Methodology for Establishing an Adequate Allowance for Loan and Lease Loss (ALLL) Accounts
- Evaluation of Documentation Standards, Tracking Mechanisms, and Reporting Functions
ProBank Austin requires Loan Review engagement letters to be authorized by the Board of Directors, or by a Board Committee. ProBank Austin will present Loan Review Reports to the Board or to an independent entity.