PREPARING FOR AN EXAMINATION IN MINUTES
Hearing from current and prospective customers that preparing for an exam takes days or weeks of valuable time. I attended a recent meeting with several bankers and I told them that LQAS could create the information needed for an exam in less than an hour. Everyone that heard me appeared impressed. Once I returned to the office I created the list of reports below in FIVE MINUTES.
When the COVID crisis is over it will be business as usual for the banks and regulators. Using LQAS is a tremendous cost savings in monitoring the portfolio and quickly supplying data to any area that requests it. We have had banks improve their CAMELS ratings by TWO in eighteen months using our system. We position the Bank’s management team to know all aspects of the loan portfolio so the regulators cannot tell them anything they don’t already know.
INCLUDED REPORTS
LQAS contains all of the data needed to create these reports. We start with a core download. All other lending areas that are maintained on various systems in the bank are converted into LQAS. the system can track credit and collateral documents, monitor all borrowing relationships and guarantors, monitor collateral values across the entire portfolio. this includes loan to value monitoring with targets based o primary collateral. All data in the system is available for the reports mentioned below.
I can forward the actual report set if you wish to review. My email is ccrawford@lqas.com. If I missed something let me know.
REVIEW SAMPLE SUMMARY
PPLIST – LQAS pulled a sample of the portfolio based on a loan cut of $400,000 and 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 in the sample report. This portion ran in around ninety seconds.
EXAMINER LINE SHEETS
SAMPLELINESHEETS – Line Sheets for the entire sample were listed with one click. The system generated 103 pages which include the entire sample listed on the PPLIST. Some banks distribute the Line Sheets to the lenders as a defensive move for loan discussion. The Line Sheets for the entire sample took about a minute to produce. Examiners in recent years have their own automated Line Sheets. I have been told they are usually two pages long. Our Line Sheets include information that they do not have. They are constantly filling in the blanks with information that they pull from the actual files or various systems in the bank. Once again all data resides in our system.
LOANS TO DIRECTORS, OFFICERS, AND EMPLOYEES
DOE – Loans to Directors, Officers, and Employees. A required report to supply examiners also a standard loan review report in the system that ran in less than a minute.
WATCH LIST
WATCH – LQAS understands all grades in the bank. Our demo bank has Watch coded as 3. One click and all watch credits are listed in less than a minute.
CLASSIFIED LOANS
CLASSIFIED – this report will ask which grade to start. Substandard is rated 5 in the demo bank, everything 5 and above are listed in less than a minute.
LARGE LIABILITIES
LARGELIA – 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 a minute.
BANK SUMMARY
BANKSUM – Bank Summary lists bank wide totals of loans, exceptions, grades and CECL allocations. All banks want to see this report during a CECL demonstration to show a bottom line number to compare to the bank’s GL to make sure they have an adequate reserve. Available in a few seconds.
LOAN TO VALUE MONITORING
THRESHOLDX – 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 less than five seconds.
ELECTRONIC SALES BROCHURE
Here is our newest addition to our website. It is an electronic version of our sales brochure. It covers all major areas of the system and can be updated with all of our newest features. The newest one is our free CECL model. If you click LQAS and CECL it will show sample screens and discuss what it can do for the bank.
LQAS DEMONSTRATION
Short demos can last thirty minutes while more comprehensive tours through the system can last sixty to ninety minutes depending on questions.