Recent developments of our system include reducing loan review expense and increased examiner credibility.
Our clients range from over five hundred billion to many community banks across the country.
Our latest version can automatically grade and writeup loans. Our demo system worked the entire bank in two seconds.
I have heard from our clients that preparing for an exam can take days or weeks of valuable time. I mentioned at a recent bank conference that LQAS can prepare a bank for an exam in one hour. Everyone that heard me stopped talking and asked in unison how we pulled it off. I was concerned that I had exaggerated the system’s performance. Once I returned to the office I created the list of reports below in FOUR MINUTES.
I am mentioning below all of the reports for your review. LQAS contains the data needed. The reports either exist in the system or they can be created as custom reports for each client bank.
The reports include:
LQAS pulled a sample of the portfolio based on a loan cut of $400,000. I also pulled additional lines containing Watch or worse classifications down to $50,000. Indirect, guarantors, and other direct debts were listed in less than a second with the click of a button. The sample represents 79% of the bank’s loan portfolio. This portion ran in around thirty seconds.
Examiner Line Sheets for the entire sample were listed again with one click. The system generated 103 pages which include the entire sample. Some banks distribute the line sheets to the lenders as a defensive move for loan discussion. The line sheets took less than thirty seconds to produce.
Loans to Directors, Officers, and Employees. Usually a required report to supply examiners. A standard loan review report in the system. It ran in less than ten seconds.
LQAS understands all grades in the bank. Our demo bank has watch coded as 3. Again 1 click and all watch credits are listed in less than five seconds.
Classified Loan report will ask which grade to start. Substandard is rated 5 in the demo bank, everything 5 and above are listed in less than five seconds.
Large Liabilities report. This report lists everything above a cut that is input when the report comes up. It has multiple uses as well as loan limit monitoring. Again it ran in less than five seconds.
Bank Summary lists bank wide totals of loans, exceptions, grades and CECL allocations. All banks want to see this report during a CECL demonstration. It will show a bottom line number to compare to the bank’s GL to make sure they have an adequate reserve. Available in a two seconds.
Excess of Threshold lists all loans that have inadequate loan to value ratios against a predetermined threshold. The system monitors collateral values for each piece of collateral separately. Commodity or Stock loans can be revalued bank wide by inputting updated valued on a single screen and pressing a button. The entire portfolio is updated in two seconds.
There are several other reports that quickly paint a deeper picture of the condition of the bank. I highly recommend using them internally and do not share with the regulators unless asked.
All reports were run against our demonstration bank. Larger banks will take longer, but should still take much less than an hour. This replaces days and sometimes months needed in our client banks before installing LQAS.
Immediate Contact Chris Crawford President [email protected] 512-986-6093