The model is fully integrated into LQAS as a standard (free) feature. Like other areas of the system, it relies on the importance of factors that if ignored causes increased classifications and failures. Most are ignored by the FASB specifications.

It can accommodate up to 9999 CECL pools and each pool can have options toggled on and off at will.

Most data are known information that is fed to the model by LQAS itself reducing the bank’s time and effort to comply with this otherwise complicated and time-consuming task.

Most of the CECL requirements revolve around the history of note grades at the note level. We have examples in our demo system going back to 2000 tracking this data. This means if we have a client that has been on LQAS since 2000 we will have twenty-one years of history for historical losses if the bank wishes to go back that far. Newer banks can simply enter their historical grades (Watch and worse) for the desired historical period. This is one of the main reasons that our model is free. Most of the processing was already done prior to CECL being proposed.

The model can also follow migration loss percent if the bank desires. Classification migration has been a standard feature of LQAS for over twelve years.

LQAS monitors all collateral on all loans daily. We start with the OCC CRE spreadsheet and build on their model. We feel that other collateral types are as dangerous as CRE such as Stock, Oil and Gas, Inventory and AR in a downturn. You can apply rules to any collateral in our model. Collateral value and Debt Service Coverage are recalculated based on the stress factors. The stressed amounts are totaled by note, customer, officer, branch or department, region, division, and bank. The stress model is included in LQAS as a standard (free) feature.

LQAS can prepare you for your next examination and loan review the following ways:

• A PC-based system can organize lending backroom details to anticipate Examiner/Loan Review requirements.
• Reporting allows bank management to monitor and control credit/collateral exceptions, keeping ahead of problem loans, as well as examiners.
• Increase the bank’s credibility with examiners. The typical loan review process is 80% manual recording of information and 20% actual evaluation. With an automated system, that ratio can be reversed so that the majority of time can be spent on analysis and working with bank management to improve overall loan portfolios.
• Reduction of labor costs by reducing the time taken to research and organize vast amounts of detail.
• Time spent digging through files for supporting documentation is done in seconds when used with our document imaging option.
• Examiner type line sheets, covering the entire borrowing relationship, can be generated and printed in seconds.
• Automated export process – LQAS    – . Our review/examination tool.

Addressing Regulatory Issues:

Operational and Managerial Standards are now dictated to the bank by the regulators. LQAS now covers all areas of loan monitoring requirements. Staying on top of portfolios is critical for bank managers, especially in light of the FDIC Improvement Act of 1991, which can hold managers and/or lenders individually accountable for exceptions. We are committed to adding any features as regulations dictate in the future. We have recently enhanced our reserve calculations to comply with changes in regulations.

 Debt Summary:

LQAS can monitor and total the entire debt picture of the borrower for loan limits, examiner/loan review loan cutoffs and guarantor monitoring. Having this information available from the nearest computer terminal is invaluable to any bank.

 Write ups:

Write ups can be done on LQAS at either/or the customer or loan level. Customer and loan write ups can be written with a standard template (created by each institution) or can be done without a template. Write ups contain full word processing capabilities including spell check. Ratios can be entered before a customer write up is done and saved with the write up. Write up histories are maintained by LQAS.

FEATURES including but not limited to:

• Total debt calculation including unfunded commitments and indirect unfunded.

• Up to 1200 split grades per loan with automatic adjustment of graded loan amount via current balance download from mainframe even if the loan has multiple grades.

• RAF set per grade and loan type with ability to change bank wide or set specific to a loan

• Unlimited customer write ups & history with spell check.

• Unlimited loan write ups & history with spell check.

• Direct regulatory access for examination via   .

• Digitize submission of all customer, loan and document information to the regulators as requested by OCC.

• Ability to assign the customer a grade and to split grade at the customer level.

• Updated ALLL calculation to comply with current regulations.

• Portfolio Stress Testing that goes beyond testing CRE

The Loan Review section of LQAS has proven to dramatically reduce the time and expense involved in reviewing the portfolio. The majority of this reduction is due to elimination of “File Cracking” to determine the adequacy of the supporting documentation.

 is our next step in improving efficiency in the review/examination process. Imagine a system that can slice off a portion of the portfolio pinpointing the lines to be selected and dropping all of this information including related document images onto a CD-ROM. This CD is a fully operational subset of LQAS that can be shipped to the external reviewer or examiner and installed on their computer for access to the selected lines. This function should eliminate travel time and expense during the review. This CD can also be given to examiners when they walk into your institution to eliminate pulling of credit and collateral files.

Some selection criteria includes:

• Loan cut amount
• Loan number
• Specific customer
• Worst grade
• Days past due
• Customers past due for a review
• Grade and loan cut
• Random

In less than 4 seconds LQAS – Pinpoint selected 53 lines to be reviewed based on the loan cut, worst grade, DOE and days past due sampling we requested. Indirect is flagged after all criteria has been entered. Our newest version has additional selection criteria that can be mixed with any other criteria to define the review sample in a single step. Several teams of regulators have conducted their reviews using this feature. Call for details.

Reviewer direct access is a new feature. The reviewer can logon to LQAS directly and will be confined to the sample. This enables LQAS to be ready for a review once the sample is defined. Preparing for an exam now takes minutes for LQAS clients.

SOME FEATURES INCLUDE:

• Line Sheets
• Exception reports
• Coming Due Reports
• Exception & Coming Due Letters
• Officer Performance Monitoring
• Automated bank defined checklists
• Fully automated customer/loan review
• Classified loans reports
• Split grading on loans with history and RAF
• SIC/NAICS tracking and concentrations
• Immediate generation of document waivers
• Critical exceptions (defined by bank)
• Critical aging reports
• Debt totaling including direct, indirect, unfunded, related and indirect unfunded
• Relationship tracking
• Custom fields
• Covenant tracking and reporting
• Policy exception tracking and reporting
• Multiple search fields
• Accessible via your web browser or your iPad

And much more…..

* With purchase of our document imaging option

INTEGRATED IMAGING

LQAS/DQAS scans, stores and retrieves images on all documents. Scanning support includes speed of up to 110 images per minute in duplex scanning mode. Blank pages scanned are dropped automatically by LQAS/DQAS. Storage of document images on the server has dropped in cost to under 30 cents to store 100,000 pages. Offline backup is accomplished on industry standard CD/DVD-ROMS that have one hundred year guaranty (Kodak Gold Media). Retrieval is accomplished by selecting a document in the tracking system and pressing one button. The retrieval has been performed in as fast as two seconds at a branch hundreds of miles away. Images can be rotated 90 degrees, flipped at the scanning or retrieval stages and any portion of the document can be zoomed.

SOME FEATURES INCLUDE:

• Automatic indexing of documents – no need for separate indexing people/department
• Bulk scanning allows an entire stack of various documents to be scanned into the system in one pass. All images are indexed to the tracked document automatically.
• 2 second retrieval of images
• Zoom, pan & rotation of images
• Annotations, notes & highlights can be added to the images.
• Retrieval of previous scans maintained in scan date order
• Allows for offsite storage of stored images for Disaster Recovery
• Tell instantly whether a document has scanned or imported images available
• Bar code labeling and scanning included with the document imaging option
• Easy exporting of images for examiners
• Available via web browser
• Importing of documents from any location included with document imaging option
• Quality control

DISASTER RECOVERY

All images are recorded on write-once CD ROMS or DVDs. Multiple disks can be created for storage at various locations if main location becomes disabled for whatever reason.

Relationship Monitoring

LQAS allows you to tie relationships together. With the proper tying of relationships it can keep track of a customer’s direct debt, indirect debt and related customers. The links can be created from a download from your core system, or you can manually create the links within LQAS. Once created, the entire relationship of the borrower is available on screen and in relationship reports. The relationship summary report will give you all direct debt, indirect debt, unfunded commitments, total debt, debt plus unfunded amounts and related amounts for the customer. This information is also available on a single screen within LQAS. Detailed information is also easily obtained.

Guarantors and debts that your customer guarantees are just a click away.

The relationship reports will reflect deposit balances as well, if you are downloading both deposit account and loan account information.

Large relationship and legal lending limit monitoring are other features available with our relationship monitoring.

Debt Totaling

LQAS can monitor and total the entire debt picture of the borrower for loan limits, examiner/loan review loan cutoffs and guarantor monitoring. The total debt calculation includes direct debt, indirect debt, unfunded commitments and debt plus unfunded commitments. Non bank customers can be loaded and tracked for possible legal lending limit violations due to guaranteeing an excessive debt amount. Partial guarantees by percentages and or caps for all debt or just loan specific are also supported with automatic calculation of the actual guaranty amount.

INTEGRATED BAR CODING – LQAS has integrated bar coding built in for both the loan and deposit parts of the software. Bar code labels or full sheet barcodes are generated by LQAS with a single click for a document and can also be printed for the credit file and collateral file. The bar code can be affixed to the appropriate document or file or put in front of the document to be imaged. Bar coding the document serves multiple functions. If a document is bar coded it can be sent to the image scanner for improved workflow management for higher throughput. The document bar code is also used for location tracking of the original document if the bank chooses to bulk file the document.

BULK FILING – The ability to bulk file your documents is now available in LQAS. This is a huge time saver for your bank. Documents can be coded on the checklist to be bulk filed, shredded or no bulk filing. (File in the file or note jacket). This information appears on the bar code label so no one has to remember what happens to what document or where it gets bulk filed.

** New Feature: Available for viewing through a scheduled Internet demo.

Additional Uses of the software are as open as your imagination. Some banks are using it for scanning/storing maintenance logs, board reports, etc. . Some download additional information from their mainframe into LQAS so that they can generate various reports and manipulate the data from LQAS. Board reports can be generated directly from LQAS when the appropriate information is downloaded from your mainframe. This assists in the preparation of the reports as well as saves time. Custom reports can be written by AMT or by someone at your bank using Crystal Reports.

NEW FEATURES

Pending Status / Pipelining – Customers, loans, accounts that are coded pending have all security open for them to allow front line people to use LQAS as an electronic online checklist during the loan/account process.

File Check In/Out – LQAS now helps you keep track of the physical file, generate bar codes for the file, & using the bar code you can check the file out to people as well as quickly check the file back in. No more manual cards to keep track of files and anyone with appropriate security can see who has checked out the file. Reports will tell you what files are out, to whom & how long they have been out. You can even block files from being checked out.

Officer Calls / Referrals / Memorandums – Action types defined by the bank have now been added to the memorandum sections. This will enable a bank to use these areas for various other things like: Officer calls on potential new customers, electronic log of calls on past due loans, etc.

Covenant Tracking – Targets can be set for debt to income, ROA, ROE, DSC, etc. and covenants generated when these are not met. Reports are also available.

Portfolio Stress Testing – We have implemented the OCC model and added stress testing to all other collateral types so a more accurate picture can be obtained.

Enhanced Financial Statement Detail – Multiple financial statement types can be loaded to feed our ratio analysis and covenant tracking.

IPad viewer for Lenders and CSR’s – This app will securely read data from LQAS and deliver it to the mobile lender or CSR. This includes requested data and all images from the credit and collateral file.

Exception & Coming Due Letter Emailing – letters can be printed or emailed.