Sageworks Blog

May 16, 2013 10:30

In a recent post, we reviewed what types of data should be used in stress testing, whether the institution is using a top down or bottom up approach. But where can the analyst find this data if it's coming from disparate systems?



Key loan and customer information will often be found in the financial institution’s core operating system. For larger institutions using several core systems, integrating the data into a central platform may be necessary. It is critical to have codes built into the loan portfolio to filter various concentrations of loans and to provide granularity when stress testing loans with higher risk characteristics. If the data isn’t already available, financial institutions can start amending underwriting policies to ensure this type of loan-level detail is collected. [More]

May 13, 2013 09:41

For many financial institutions, bottom up stress testing may be the more useful exercise, particularly for institutions with high levels of commercial real estate. For stress testing a loan portfolio using a bottom up approach, a number of basic data fields are required. Several of these fields, including basic loan information such as call code, loan type, property type, risk rating and location, are already being captured in the institution’s core accounting system. [More]

Sep 19, 2012 13:12

Seeing examiners walk through your financial institution’s door is often a cause for fear, or at least apprehension. They cause your institution to devote time and resources toward compliance, and they tend to have a way of finding the six loans in your portfolio that don’t have up-to-date information. Ease exam tension by following these nine steps. [More]

Aug15

Helping Clients through Better Benchmarking Brad Schaefer [email] Analyst

Aug 15, 2012 08:40

Helping your business clients with industry-specific, financial benchmarking is extremely important to measure and improve their performance. To provide real value, you need industry data that is accurate, up to date, and relevant to your client’s size and location. Learn how you will also benefit from their increased success as you continue to advise your clients while they grow. [More]

Jul 18, 2012 13:14

Allowance for loan and lease losses (ALLL) is an important regulatory procedure for banks and national bank regulatory agencies issued an updated inter-agency policy statement on the ALLL “to ensure consistency with generally accepted accounting principles (GAAP) and more recent supervisory guidance.” Learn how to efficiently comply and calculate the allowance for loan and lease losses. [More]

May 22, 2012 07:51

As memberships in U.S. credit unions have grown, many institutions are expanding their offerings to include member business loans. Whether it’s a credit union making this move for the first time, or a bank diving deeper into commercial lending, I find that institutions encounter several common “hot-button” issues associated with commercial lending. One common “hot-button” issue has to do with handling the documentation associated with commercial loans. Commercial lenders must balance customer service issues with the need to have detailed documentation to keep compliance officers and examiners happy. [More]