Credit Services

Independent Credit Review Consulting Services

In-Depth Credit Reviews:
Comprehensive credit reviews to identify potential risks and opportunities

Loan Review Department Assessments:
Evaluation and optimization of loan review departments for enhanced efficiency and effectiveness

Design and Implementation of Loan Review Programs:
Customized loan review programs tailored to your bank’s specific needs

ACL Reviews & Credit Profile Assessments:
Reviews of Allowance for Credit Losses (ACL) and credit profiles to ensure accuracy and compliance

Capital Stress Tests:
Stress testing to assess capital adequacy and identify potential vulnerabilities

Stress Testing

Stress Testing:
Bottom-up and top-down approaches for comprehensive risk assessment

Portfolio Analysis:
Wholesale and consumer portfolio evaluation for potential vulnerabilities

Risk Identification:
Identification of key risk factors and mitigation strategies

Regulatory Compliance:
Expert guidance on regulatory requirements and expectations

Merger & Acquisition Due Diligence

Experienced Team:
Seasoned team with direct experience acquiring and integrating over 30 banks

Proven Track Record:
Completed over 300 due diligence assignments in the last 15 years

Diverse Client Base:
Serving banks, private equity groups, financial services companies, and bank investor groups

Comprehensive Services:
“Soup to nuts” services with a primary focus on credit and risk loss forecasting

Mergers of Equals:
Expert guidance for complex mergers of equals

Reverse Due Diligence:
Independent review of your bank’s readiness for acquisition

Credit Portfolio Management Consulting Services

Credit Training:
Expert training on credit risk assessment and management best practices

Outsourced Underwriting & Financial Spreading:
Efficient and accurate credit decision-making support

Leveraged Loan Management:
Expert guidance on managing leveraged loan portfolios

Exception-Based Monitoring:
Design and implementation of monitoring programs for Small Businesses and middle-market borrowers

Enterprise Valuation Framework:
Development of tailored frameworks and models for valuing leveraged loan portfolios

Consumer Portfolio Management:
Comprehensive credit risk evaluation for consumer portfolios (Credit Cards, Auto Loans, HELOCs, Installment Loans, Residential Mortgages)

Loss Forecasting & Stress Testing:
Scenario analysis and stress testing to prepare for potential losses

Climate Risk Consulting Services

Risk Assessment:
Identify climate-related risks and opportunities specific to your bank’s operations and portfolio

Regulatory Compliance:
Ensure alignment with evolving climate-related regulations and guidelines from US regulators

Portfolio Resilience:
Develop strategies to manage climate-related risks in your loan and investment portfolios

Climate-Informed Decision Making:
Integrate climate considerations into your credit risk assessment, lending practices, and investment decisions

Stakeholder Engagement:
Develop effective climate-related disclosures and communications for stakeholders, including investors, customers, and regulators

Climate Strategy Development:
Create a tailored climate strategy to position your bank for long-term success and sustainability

CECL and Allowance Methodology Consulting Services

Annual Review:
Annual review of CECL model appropriateness and verification of implementation and execution

Model Validation:
Comprehensive validation of CECL models, including:

• Model data and estimation
• Testing and documentation
• Verification of implementation and execution

Q Factor Approach:
Expert guidance on the Q Factor approach for estimating lifetime losses

Ongoing Support:
Ongoing support and updates to ensure continued compliance and best practices

CRE Risk Assessment And Program Optimization

Program Documentation:
Documenting the “How” and “Why” of existing Commercial Real Estate Risk Program

Governance:
Review and enhancement of governance structure and policies

Interaction Model:
Assessment and optimization of borrower, Relationship Manager, Underwriter, and Portfolio Manager interactions

Credit Risk Servicing:
Evaluation and improvement of credit risk assessment and servicing processes

Risk Mitigation Strategies:
Development of front-end and back-end risk mitigation strategies for income property and construction lending

Data Aggregation & Reporting:
Enhancement of data aggregation, reporting, and information analysis processes

Emerging Risk Identification:
Integration of emerging risk identification in new loan underwriting and portfolio monitoring

Portfolio Monitoring:
Ongoing monitoring and assessment of CRE portfolio risk

Design and Review Risk-Based Capital Allocation Approach

Lending Products and Business Lines:
Development of risk-based capital allocation approaches for specific lending products or business lines

Capital Allocation Framework:
Design and review of capital allocation frameworks to ensure alignment with risk appetite and regulatory requirements

Risk Assessment and Quantification:
Expert assessment and quantification of credit, market, and operational risks to inform capital allocation decisions

Regulatory Compliance:
Ensure compliance with US banking regulations and guidelines (e.g., OCC, FRB, FDIC)

Ongoing Review and Update:
Regular review and update of capital allocation approaches to reflect changing risk profiles and market conditions

Competitive Analysis And Peer Group Insights

Peer Group Analytics:
Development of peer group analytics to benchmark performance and identify areas for improvement

Regulatory Development Impact Assessment:
Assessment of regulatory developments and their potential impact on your bank’s competitive position

Competitive Landscape Analysis:
In-depth analysis of the competitive landscape to identify market trends, opportunities, and threats

Market Share Analysis:
Analysis of market share and growth potential to inform strategic decisions

Competitor Profiling:
Detailed profiling of key competitors to identify strengths, weaknesses, and strategic initiatives

Fractional Chief Credit Officer Services

Interim or Ongoing Support:
Experienced Chief Credit Officer guidance on a fractional basis

Credit Risk Management Expertise:
Deep understanding of credit risk management and regulatory requirements

Strategic Credit Leadership:
Development and implementation of credit strategies aligned with your bank’s goals
Credit Policy and Procedure Development: Review, update, and design of credit policies and procedures

Credit Training and Coaching:
Training and coaching for credit staff to enhance skills and knowledge

Regulatory Compliance and Examination Support:
Expert guidance on regulatory compliance and examination preparation

Cost-effective solution for scaling your credit operations

Develop and Validate Risk Rating Models

EL-Based and Dual Risk Rating Models:
Development of Expected Loss (EL)-based and Dual Risk Rating models to assess credit risk and portfolio performance

Risk Rating Validation:
Review and validation of risk ratings to ensure accuracy and consistency

Model Development and Implementation:
Expert guidance on developing and implementing Dual Risk Rating models tailored to your bank’s specific needs

Model Validation and Performance Monitoring:
Ongoing validation and performance monitoring to ensure model accuracy and effectiveness