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LOAN PORTFOLIO MANAGEMENT Sample Clauses

LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty (60) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (c) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (e) procedures to ensure conformance with Call Report instructions; (f) procedures to ensure the accuracy of internal management information systems; (g) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; and (h) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios. Upon completion, a copy of the program shall be forwarded to the ADC. (2) Within sixty (60 ) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; and (f) concentrations of credit. (3) Beginning August 31, 2006, on a monthly basis management will provide the Board with written reports including, at a minimum, the following information: (a) the identification, type, rating, and amount of problem loans and leases; (b) the identification and amount of delinquent loans and leases; (c) credit and collateral documentation exceptions; (d) the identification and status of credit related vio...
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within 60 days from the date of this Agreement, develop, implement, and thereafter ensure Bank adherence to, a written program to improve the Bank's loan portfolio management and correct each deficiency cited in the 2009 XXX, the 2010 XXX, and any subsequent Report of Examination. The program shall be designed in conformity with the “Loan Portfolio Management” booklet of the Comptroller’s Handbook (dated April 1998). The program shall include, but not be limited to: (a) sound credit risk management practices discussed in OCC Bulletin 2006- 46 - Interagency Guidance on Commercial Real Estate Concentration Risk Management; (b) an effective and ongoing internal problem loan identification system to review the Bank's loan and lease portfolios to assure the timely identification and categorization of problem credits; (c) a system to track loan policy exceptions by number and dollar total (compare to capital), by type, and in aggregate; and report trends to the Board monthly; (d) a system to track compliance with loan covenants, and develop loan covenant monitoring reports; (e) controls over loan Call Report coding, especially for commercial real estate owner/non-owner occupied properties, require internal audit to test the controls to ensure the Call Report is accurate; (f) procedures to ensure that appraisal review maintains adequate documentation to support findings, especially whether capitalization/discount rates and the reasonableness of income and expense projections are adequately supported in appraisals (required by USPAP); if not adequately supported, the reviewer should obtain a written explanation from the appraiser and disclose any potential appraisal issues/weaknesses to the credit administration and the credit granting authority; (g) procedures to ensure that an adequate number of qualified staff are employed, independent of the lending function, to review appraisals in order to determine compliance with the appraisal regulation and USPAP guidance; and (h) appraisal procedures that ensure the flow of information between the appraisal review and credit administration functions to ensure impairment analyses and the transfer of loans to Other Real Estate Owned are appropriate and timely. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Beginning no later than September 30, 2010, and on a monthly basis, management will provide the Board with written reports including, at a mini...
LOAN PORTFOLIO MANAGEMENT. (1) Within sixty (60) days, Board shall establish credit risk management practices that ensure effective credit administration, portfolio management and monitoring, and risk mitigation. In doing so, the Board shall adopt and the Association (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to a written credit policy to improve the Association's loan portfolio management. The credit policy shall include (but not be limited to): (a) revision and/or development of the Association’s procedures to ensure accuracy of risk ratings and proper and timely problem loan identification, including non-accrual loans; (b) procedures that require ongoing monitoring of borrower ability to repay the loan through receipt and documented review of current borrower, principal and guarantor financial information; (c) procedures and controls to periodically verify the existence and lien position of collateral; (d) procedures that ensure the utilization of interest reserves is consistent with established controls and clearly defined parameters for projected costs. (e) credit risk rating definitions consistent with applicable regulatory guidance; (f) procedures for early problem loan identification, to ensure that credits are accurately risk rated at least monthly; (g) written reports, regularly submitted to the Board, identifying the aggregate loans and leases not in conformance with the Association’s lending and leasing policies, and exceptions to the Association’s lending and leasing policies; (h) a system to effectively monitor previously charged-off assets and their recovery potential; and (i) a requirement to identify, track and report real estate loans that exceed the supervisory loan-to-value limits. (2) The Board shall ensure that Association personnel performing credit analyses are adequately trained in cash flow analysis, particularly analysis using information from tax returns, and that processes are in place to ensure that additional training is provided as needed. (3) The Board shall ensure that management adequately staffs the Credit Department with personnel who possess the appropriate expertise relative to the Association’s risk profile. (4) Within sixty (60) days the Board shall adopt, implement and ensure Association adherence to a written portfolio stress testing policy that considers changes in interest rates and appropriate economic factors. (5) A written report of the stress test results shall be provided to the B...
LOAN PORTFOLIO MANAGEMENT. (1) Within sixty (60) days, Board shall adopt and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to a written credit policy to improve the Bank's loan portfolio management. The credit policy shall include (but not be limited to): (a) a description of the types of credit information required from borrowers and guarantors, including (but not limited to) annual audited statements, interim financial statements, personal financial statements, and tax returns with supporting schedules; (b) procedures that require any extension of credit (new, maturity extension, or renewal) is made only after obtaining and validating current credit information about the borrower and any guarantor sufficient to fully assess and analyze the borrower’s and guarantor’s cash flow, debt service requirements, contingent liabilities, and global liquidity condition, and only after the credit officer prepares a documented credit analysis; (c) procedures that require any extension of credit (new, maturity extension, or renewal) is made only after obtaining and documenting the current valuation of any supporting collateral, perfecting and verifying the Bank’s lien position, and that reasonable limits are established on credit advances against collateral, based on a consideration of (but not limited to) a realistic assessment of the value of collateral, the ratio of loan to value, and overall debt service requirements; (d) procedures to ensure that loans made for the purpose of constructing or developing real estate include (but are not limited to) requirements to: (i) obtain and evaluate detailed project plans; detailed project budget; time frames for project completion; detailed market analysis; and sales projections, including projected absorption rates; (ii) conduct stress testing of significant project and lending; and (iii) obtain current documentation sufficient to support a detailed analysis of the financial condition of borrowers and significant guarantors. (e) a requirement that borrowers and/or guarantors maintain any collateral margins established in the credit approval process; (f) procedures that prohibit the capitalization of accrued interest on any loan renewal or extension; (g) procedures that prohibit, on any loan renewal, extension or modification, the establishment of a new interest reserve using the proceeds of any Bank loan to the same borrower or guarantor; (h) procedures to ensure that all exceptions to the cr...
LOAN PORTFOLIO MANAGEMENT. (1) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to an updated written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) a pricing policy that takes into consideration costs, general overhead, and probable loan losses, while providing for a reasonable margin of profit; (b) guidelines for loans to insiders, including a statement that such loans will not be granted on terms more favorable than those offered to similar outside borrowers; (c) guidelines and limitations on concentrations of credit; (d) measures to correct the deficiencies in the Bank's lending procedures noted in any XXX; (e) procedures to strengthen credit underwriting, particularly in the commercial real estate (CRE) portfolio; (f) an action plan to control CRE growth; (g) procedures to ensure satisfactory and perfected collateral documentation; (h) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (i) procedures to ensure conformance with loan approval requirements; (j) a system to track and analyze exceptions; (k) procedures to ensure conformance with Call Report instructions; (l) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios; (m) procedures to ensure the re-appraisal of property that defines the criteria for when a new or adjusted appraisal is required based upon changes in market conditions or original project plans; and (n) a comprehensive loan review process that quantifies the overall level of credit risk and assesses the quality of credit risk management. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to updated systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, division, group, indirect dealer, and individual lending officer; (c) previously charged-off assets and their recovery pot...
LOAN PORTFOLIO MANAGEMENT. The Board shall, within thirty (30) days, develop, implement, and thereafter ensure Bank adherence to, a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to:
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty (60) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's loan portfolio management. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (c) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (e) procedures to ensure conformance with Call Report instructions; (f) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters. (2) Upon completion, a copy of the program shall be forwarded to the ADC. (3) Effective immediately, the Bank may grant, extend, renew, alter or restructure any loan or other extension of credit only after: (a) documenting the specific reason or purpose for the extension of credit; (b) identifying the expected source of repayment in writing; (c) structuring the repayment terms to coincide with the expected source of repayment; (d) obtaining and analyzing current and satisfactory credit information, including cash flow analysis, where loans are to be repaid from operations; (i) Failure to obtain the information in (2)(d) shall require a majority of the full Board (or a delegated committee thereof) to certify in writing the specific reasons why obtaining and analyzing the information in (2)(d) would be detrimental to the best interests of the Bank. (ii) A copy of the Board certification shall be maintained in the credit file of the affected borrower(s). The certification will be reviewed by this Office in subsequent examinations of the Bank; and (e) documenting, with adequate supporting material, the value of collateral and properly perfecting the Bank's lien on it where applicable. (4) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases; (b) previously charged-off assets and their recovery potential; (c) comp...
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within sixty (60) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's management of the consumer and commercial portfolios. The program shall include, but not be limited to: (a) procedures to ensure satisfactory and perfected collateral documentation; (b) procedures to ensure that extensions of credit are granted, by renewal or otherwise, to any borrower only after obtaining and analyzing current and satisfactory credit information; (c) procedures to ensure conformance with loan approval requirements; (d) a system to track and analyze exceptions; (e) procedures to ensure conformance with Call Report instructions; (f) procedures to ensure the accuracy of internal management information systems; (g) an adequate training program for all loan officers to ensure that the Bank maintains adequate, qualified staff in all loan administration areas; (h) a performance appraisal process, including performance appraisals, job descriptions, and incentive programs for loan officers, which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters; and (i) procedures to track and analyze concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller and prior written determination of no supervisory objection. (3) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems that provide for effective monitoring of: (a) early problem loan identification to assure the timely identification and rating of loans and leases based on lending officer submissions; (b) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, and individual lending officer; (c) previously charged-off assets and their recovery potential; (d) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (e) adequacy of credit and collateral documentation; (f) concentrations of credit; and (g) loan growth. (4) Beginning sixty (60) days after the effective date of this Agreement, and on a monthly basis thereafter, management will provide the Board with written report...
LOAN PORTFOLIO MANAGEMENT. (1) Within sixty (60) days, the Board shall develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's Commercial Real Estate Loan portfolio management. For the purpose of this Article, Commercial Real Estate Loans includes loans reported on the Bank’s Call Report Form FFIEC 041, Schedule RC-C Part 1, Items 1.a.1, 1.a.2., 1.d., and 1.e.
LOAN PORTFOLIO MANAGEMENT. (1) Within sixty days (60) days, the Board shall develop, adopt, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of: (a) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function; (b) the adequacy and documentation of analyses of current and comprehensive financial data from borrowers, including guarantor contingent liability information and rent rolls; and (c) the adequacy and documentation of global cash flow analysis and updates related to guarantor support. (2) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the systems developed pursuant to this Article.