LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety (90) 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; (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. (i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions; (j) procedures to monitor previously charged-off assets and their recovery potential; and (k) compliance monitoring system to determine compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function. (2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller. (3) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety (90) 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) steps to enhance credit analysis and reduce credit, collateral, and Bank loan policy exceptions;
(e) a system to track and analyze exceptions, including measuring conformance with reasonable risk limits for exception rates approved by the Board and consistent with the Board’s risk appetite;
(ef) procedures to ensure conformance with Call Report instructions;
(fg) procedures to ensure the accuracy of internal management information systems;
(gh) requirements for pre- and post-funding analysis of credits;
(i) requirements for obtaining and reviewing current, full, and timely information throughout the term of each loan sufficient for adequate credit monitoring;
(j) 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, exception levels, and other loan administration matters;; and
(hk) 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.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(jl) procedures to monitor previously chargedappropriate loan and portfolio level stress testing, consistent with OCC guidance, including OCC Bulletin 2012-off assets and their recovery potential; and
33 (kCommunity Bank Stress Testing) compliance monitoring system to determine compliance (October 18, 2012), with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending functionparticular focus on credit concentrations.
(2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(3) The Within ninety (90) days, the Board shall ensure that the Bank has processesdevelop, personnelimplement, and control systems to thereafter ensure implementation of and Bank adherence to systems which provide for effective monitoring of:
(a) early problem loan identification to assure the program timely identification and systems developed pursuant 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.
(4) Beginning within ninety (90 days), on a quarterly basis management will provide the Board with written reports sufficient to enable the Board to provide adequate oversight over the Bank’s loan portfolio, 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, including trends;
(d) credit policy exceptions, including at a minimum, monthly Board monitoring of policy exception reports that track aggregate number and dollar amount of loans with material underwriting exceptions as a percentage of outstanding loans, as well as by type of loan and loan officer;
(e) the identification and status of credit related violations of law, rule or regulation;
(f) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this ArticleArticle and Paragraph;
(g) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(h) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(i) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies.
Appears in 1 contract
Samples: Banking Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety (90) days, develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's ’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;
(cb) procedures to ensure conformance with loan approval requirements;
(dc) a system to track and analyze exceptions;
(ed) procedures to ensure conformance with Call Report instructionsthe written loan policy;
(fe) procedures to ensure the accuracy of internal management information systems;
(gf) 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
(hg) 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.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(j) procedures to monitor previously charged-off assets and their recovery potential; and
(k) compliance monitoring system to determine compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function.
(2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(3) Within ninety (90) 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.
(4) Beginning June 30, 2004, on a quarterly basis, management will provide the Board with written reports including, at a minimum, the following information:
(a) the risk profile (i.e., risk distribution) of the loan and lease portfolios and any changes to that risk profile from prior periods;
(b) the identification, type, rating, and amount of problem loans and leases;
(c) the identification and amount of delinquent loans and leases;
(d) credit and collateral documentation exceptions;
(e) the identification and status of credit-related violations of law, rule or regulation;
(f) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(g) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(h) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(i) the identification of loans and leases not in conformance with the Bank’s lending and leasing policies, and exceptions to the Bank’s lending and leasing policies. The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety sixty (9060) 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, timeliness and accuracy in credit gradinggrading and recognition of nonaccrual loans, 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.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(j) procedures to monitor previously charged-off assets and their recovery potential; and
(k) compliance monitoring system to determine compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function.
(2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(3) Within ninety (90) 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, including non-accruals, 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.
(4) Beginning December 31, 2010, on a quarterly 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 violations of law, rule or regulation;
(e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies.
(5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety sixty (9060) 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) 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
(hi) 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.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(j) procedures to monitor previously charged-off assets and their recovery potential; and
(k) compliance monitoring system to determine compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function.
(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 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.
(4) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Compliance Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety (90) 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 policy guidelines and loan approval requirements, including collateral guidelines concerning the maximum ratio of loan value to appraised value or acquisition costs of collateral securing a loan;
(d) procedures to ensure conformance with insider lending laws and regulations;
(e) a system to track reviews coming due and completed under the bank’s large loan analysis program;
(f) a system to track and analyze exceptions;
(eg) procedures to ensure conformance with Call Report instructions;
(fh) procedures to ensure the accuracy of internal management information systems;
(gi) 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
(hj) procedures to track and analyze concentrations of credit (including loans to insiders), in order to identify and assess the inherent credit, significant economic factorsliquidity, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(j) procedures to monitor previously charged-off assets and their recovery potential; and
(k) compliance monitoring system to determine compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending functioninterest rate risks.
(2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(3) Within ninety (90) 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.
(4) Beginning September 30, 2005, on a quarterly 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 violations of law, rule or regulation;
(e) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies.
(f) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (e) of this Article and Paragraph;
(g) an analysis of concentrations of credit (including loans to insiders), significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios; and
(h) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank.
(5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety (90) 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) an appraisal review process which includes the review and testing of assumptions;
(c) 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;
(cd) procedures to ensure conformance with loan approval requirements;
(de) 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) procedures to ensure loan files are maintained with the most current information;
(h) procedures to ensure annual review of credit relationships above $500 thousand dollars;
(i) a performance appraisal process, including performance appraisals, appraisals and job descriptions, and incentive programs for loan officers, descriptions which adequately consider their performance relative to policy compliance, documentation standards, accuracy in credit grading, and other loan administration matters;; and
(hj) 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.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(j) procedures to monitor previously charged-off assets and their recovery potential; and
(k) compliance monitoring system to determine compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function.
(2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(3) Within ninety (90) 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 or any other relevant measure;
(c) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function;
(d) adequacy of credit and collateral documentation; and
(e) concentrations of credit.
(4) Beginning June 30, 2009, on a quarterly 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, including financial statement, exceptions;
(d) the identification and status of credit related violations of law, rule or regulation;
(e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios; and
(g) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, including applicable underwriting guidelines, and exceptions to the Bank’s lending and leasing policies.
(5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety Within sixty (9060) days, developthe Board shall review, implementrevise, and thereafter ensure Bank adherence to a its written program to improve the Bank's loan portfolio management. The An acceptable 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, timeliness and accuracy in credit gradinggrading and recognition of nonaccrual loans, 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.
(i2) Upon revision, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(3) Within sixty (60) days, the Board shall review, revise, and thereafter ensure Bank adherence to effective monitoring systems. Acceptable effective monitoring systems shall include:
(a) early problem loan identification procedures to assure the timely and accurate identification and rating of problem loans and leases, including nonaccrual loans;
(b) statistical records that will serve as a basis for identifying sources of problem loans and leases based on by industry, size, collateral, division, group, indirect dealer, and individual lending officer submissionsofficer;
(jc) procedures to monitor previously charged-off assets and their recovery potential; and;
(kd) compliance monitoring system to determine 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.
(24) Upon completionOn a quarterly basis, management shall provide the Board with written reports. Acceptable written reports shall include, at a copy 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 violations of law, rule or regulation;
(e) the identity of the program shall be forwarded loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Assistant Deputy ComptrollerBank’s lending and leasing policies.
(35) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety sixty (9060) 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) 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
(hi) 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.
(i2) 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 thirty (30) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems that provide for effective monitoring of:
(a) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(jb) procedures to monitor 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; and;
(kd) compliance monitoring system to determine 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.
(24) Upon completionBeginning thirty (30) days after the effective date of this Order, and on a copy monthly basis thereafter, 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 violations of law, rule or regulation;
(e) the identity of the program shall be forwarded loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Assistant Deputy ComptrollerBank’s lending and leasing policies.
(35) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety (90) 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) steps to enhance credit analysis and reduce credit, collateral, and Bank loan policy exceptions;
(e) a system to track and analyze exceptions, including measuring conformance with reasonable risk limits for exception rates approved by the Board and consistent with the Board’s risk appetite;
(ef) procedures to ensure conformance with Call Report instructions;
(fg) procedures to ensure the accuracy of internal management information systems;
(gh) requirements for pre- and post-funding analysis of credits;
(i) requirements for obtaining and reviewing current, full, and timely information throughout the term of each loan sufficient for adequate credit monitoring;
(j) 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, exception levels, and other loan administration matters;; and
(hk) 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.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(jl) procedures to monitor previously chargedappropriate loan and portfolio level stress testing, consistent with OCC guidance, including OCC Bulletin 2012-off assets and their recovery potential; and
33 (kCommunity Bank Stress Testing) compliance monitoring system to determine compliance (October 18, 2012), with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending functionparticular focus on credit concentrations.
(2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(3) Within ninety (90) 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.
(4) Beginning within ninety (90 days), on a quarterly basis management will provide the Board with written reports sufficient to enable the Board to provide adequate oversight over the Bank’s loan portfolio, 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, including trends;
(d) credit policy exceptions, including at a minimum, monthly Board monitoring of policy exception reports that track aggregate number and dollar amount of loans with material underwriting exceptions as a percentage of outstanding loans, as well as by type of loan and loan officer;
(e) the identification and status of credit related violations of law, rule or regulation;
(f) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(g) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(h) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(i) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies.
(1) Within sixty (60) days, the Board shall review and revise the Bank’s loan review program to ensure the Bank maintains an effective, independent, and on-going process to review, the Bank’s loan and lease portfolios and ensure the timely identification and categorization of problem credits. The program shall provide for appropriate scope and coverage of the loan and lease portfolio in light of the Bank’s size and risk profile and ensure adequate staffing of the loan review function. It shall also provide for a written report to be filed with the Board after each review and shall use a loan and lease grading system consistent with the guidelines set forth in the “Rating Credit Risk” section of the Comptroller’s Handbook. Such reports shall, at a minimum, include comments and conclusions regarding:
(a) the loan review scope and coverage parameters;
(b) the overall quality of the loan and lease portfolios;
(c) the identification, type, rating, and amount of problem loans and leases;
(d) the identification and amount of delinquent loans and leases;
(e) credit and collateral documentation exceptions and the adequacy of financial analysis performed by lending staff;
(f) the identification and status of credit related violations of law, rule, or regulation;
(g) loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies;
(h) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (b) through (g) of the Article;
(i) concentrations of credit;
(j) loans and leases to affiliates, executive officers, directors, principal shareholders (and their related interests) of the Bank;
(k) the adequacy of the ALLL; and
(l) any recommendations for improvements.
(2) The Board shall evaluate the loan and lease review report(s) and shall ensure that immediate, adequate, and continuing remedial action, as appropriate, is taken upon all findings noted in the report(s), and documentation of the action taken by the Bank has processesto collect or strengthen assets identified as problem credits, personnel, and control systems to ensure implementation of and adherence to shall be preserved in the program and systems developed pursuant to this ArticleBank.
Appears in 1 contract
Samples: Banking Compliance Agreement (Midsouth Bancorp Inc)
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety (90) 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, including nonaccrual, capitalization of expenses, and troubled debt restructures;
(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.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(j) procedures to monitor previously charged-off assets and their recovery potential; and
(k) compliance monitoring system to determine compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function.
(2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(3) Within one hundred twenty (120) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of:
(a) statistical records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, indirect dealer, and individual lending officer;
(b) previously charged-off assets and their recovery potential;
(c) compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function;
(d) adequacy of credit and collateral documentation; and
(e) concentrations of credit.
(4) Beginning June 30, 2012, on a quarterly 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 violations of law, rule or regulation;
(e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies.
(5) Within ninety (90) days the Board shall ensure proper collateral documentation is maintained on all loans and correct each collateral exception listed in the XXX, in any subsequent Report of Examination, in any internal or external loan review, or in any listings of loans lacking such information provided to management by the OCC at the conclusion of an examination.
(6) Effective immediately, the Bank may grant, extend, renew, alter or restructure any loan or other extension of credit in excess of ten thousand dollars ($10,000) 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 (3)(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 (3)(d) is not necessary or in the best interest 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.
(7) Within ninety (90) days, the Board shall engage the services of an independent, professionally certified, or licensed appraiser(s) to provide:
(a) a written or updated appraisal, in accordance with 12 C.F.R. Part 34, for each parcel of real property that represents primary collateral behind any extension of credit where:
(i) the loan was criticized in the ROE or by the Bank's internal loan review, and the most recent independent appraisal is more than twelve (12) months old; or
(ii) accrued interest or loan fees have been or will be added to the outstanding principal balance, and the most recent independent appraisal is more than twelve (12) months old, excluding first lien single family mortgage loans under five hundred thousand dollars ($500,000); or
(iii) the loan exceeds two hundred thousand dollars ($250,000), and the most recent independent appraisal is more than twelve (12) months old.
(b) a written appraisal on each parcel of Other Real Estate Owned where it is needed to bring the Bank into conformity with the provisions of 12 C.F.R. Part 34.
(8) The Board shall specifically instruct the appraiser(s) to comply with the requirements of 12 C.F.R. Part 34. The details surrounding any and all other instructions given to the appraiser(s) by the Bank, whether written or oral, shall be provided to the Assistant Deputy Comptroller for review prior to the appraiser(s) undertaking the actual appraisals.
(9) All such appraisals shall be completed within one hundred twenty (120) days, and certification by the Board attesting to the completion of the appraisals shall be forwarded to the Assistant Deputy Comptroller within thirty days after certification. Certification by the board requires an independent internal review process to be completed and then certified by management and the board. Documentation of this certification must be maintained in the board minutes and credit or Other Real Estate files.
(10) Written documentation supporting each appraisal ordering and review shall be retained in the loan file, along with the appraisal.
(11) Within sixty (60) days, the Board shall require and the Bank shall develop and implement an independent ordering and review process to ensure that appraisals conform to appraisal standards and regulations. The appraisal ordering and review process shall ensure that appraisals are:
(a) performed in accordance with 12 C.F.R. Part 34;
(b) consistent with the Bank has processesguidance in OCC Bulletin 2005-6 (Frequently Asked Questions on the Appraisal Regulations and the Interagency Statement on Independent Appraisal and Evaluation Functions, personnelMarch 22, 2005); and
(c) consistent with OCC Bulletin 2010-42 (Interagency Appraisal and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this ArticleEvaluation Guidelines, December 10, 2010).
Appears in 1 contract
Samples: Banking Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Within sixty (60) days of the Amendment, the Board shall, within ninety (90) days, shall develop, implement, and thereafter ensure Bank adherence to a written program to improve the Bank's ’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.
(i2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection.
(3) Within one hundred and twenty (120) days of this Amendment, the Board shall develop, implement, and thereafter ensure that the Bank maintains management information systems that provide for the effective monitoring of:
(a) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(jb) procedures to monitor records that will serve as a basis for identifying sources of problem loans and leases by industry, size, collateral, indirect dealer, and individual lending officer;
(c) previously charged-off assets and their recovery potential; and;
(kd) compliance monitoring system to determine compliance with the Bank's ’s lending policies and laws, rules, and regulations pertaining to the Bank's lending function;
(e) adequacy of credit and collateral documentation; and concentrations of credit.
(24) Upon completionBeginning with the first calendar quarter of 2006, management will provide the Board with quarterly reports within fifteen (15) days of quarter end that include, at a copy 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 violations of law, rule or regulation;
(e) the identity of the program shall be forwarded loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Paragraph;
(f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Assistant Deputy ComptrollerBank’s lending and leasing policies.
(35) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Formal Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety (90) days, develop, implement, and thereafter ensure Bank the Bank’s 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 loan policy exceptions;
(e) procedures to ensure conformance with applicable Call Report instructions;
(f) procedures to ensure the accuracy of internal management information systems;
(g) a performance appraisal processprocess for loan officers, 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 principal components of creditthe Bank’s loan portfolio, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios.
(i2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection.
(3) Within ninety (90) days, the Board shall develop, implement, and thereafter ensure Bank adherence to systems which provide for effective monitoring of:
(a) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(jb) procedures to monitor 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; and;
(kd) compliance monitoring system to determine 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) the principal components of the Bank’s loan portfolio.
(24) Upon completionBeginning immediately, on a copy quarterly 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 violations of law, rule or regulation;
(e) the identity of the program shall be forwarded loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(f) an analysis of the principal components of the Bank’s loan portfolio and significant economic factors and their impact on the credit quality of the Bank’s loan and lease portfolios;
(g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Assistant Deputy ComptrollerBank’s lending and leasing policies.
(35) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety Within sixty (9060) days, developthe Board shall review, implementrevise, and thereafter ensure Bank adherence to a its written program to improve the Bank's loan portfolio management. The An acceptable 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, timeliness and accuracy in credit gradinggrading and recognition of nonaccrual loans, 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.
(i2) Upon revision, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(3) Within sixty (60) days, the Board shall review, revise, and thereafter ensure Bank adherence to effective monitoring systems. Acceptable effective monitoring systems shall include:
(a) early problem loan identification procedures to assure the timely and accurate identification and rating of problem loans and leases, including nonaccrual loans;
(b) statistical records that will serve as a basis for identifying sources of problem loans and leases based on by industry, size, collateral, division, group, indirect dealer, and individual lending officer submissionsofficer;
(jc) procedures to monitor previously charged-off assets and their recovery potential; and;
(kd) compliance monitoring system to determine 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.
(24) Upon completionOn a quarterly basis, a copy of management shall provide the program shall be forwarded to the Assistant Deputy ComptrollerBoard with written reports.
(3a) 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 violations of law, rule or regulation;
(e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies.
(5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety (90) 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 real estate appraisals and evaluations comply with 12 C.F.R. Part 34, Subpart C, (c) procedures to identify and monitor loans in exception to the supervisory loan to value guidelines set forth in 12 C.F.R. Part 34, Subpart D, (d) 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;
(ce) procedures to ensure conformance with loan approval requirements;
(df) a system to track and analyze exceptions;
(eg) procedures to ensure conformance with Call Report instructions;
(fh) procedures to ensure the accuracy of internal management information systems;
(gi) 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
(hj) 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.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(j) procedures to monitor previously charged-off assets and their recovery potential; and
(k) compliance monitoring system to determine compliance with the Bank's lending policies and laws, rules, and regulations pertaining to the Bank's lending function.
(2) Upon completion, a copy of the program shall be forwarded to the Assistant Deputy Comptroller.
(3) Within ninety (90) 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.
(4) Beginning December 31, 2008, 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 violations of law, rule or regulation;
(e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies.
(5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Compliance Agreement
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety Within sixty (9060) days, the Board shall develop, implement, and thereafter ensure Bank adherence to a an updated written program to improve the Bank's ’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;
(bh) 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;
(ci) procedures to ensure conformance with loan approval requirements;
(dj) a system to track and analyze exceptions;
(ek) 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;
(hl) 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.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(jm) procedures to monitor previously chargedensure the re-off assets and their recovery potentialappraisal 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
(kn) compliance monitoring system to determine compliance with a comprehensive loan review process that quantifies the Bank's lending policies overall level of credit risk and laws, rules, and regulations pertaining to assesses the Bank's lending functionquality 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 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.
(4) Within sixty (60) days, management will provide the Board with written reports on a monthly basis, 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 violations of law, rule or regulation;
(e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and paragraph;
(f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(h) the identification of loans and leases not in conformance with the Bank’s lending and leasing policies, and exceptions to the Bank’s lending and leasing policies.
(5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
LOAN PORTFOLIO MANAGEMENT. (1) The Board shall, within ninety Within sixty (9060) days, the Board shall develop, implement, and thereafter ensure Bank adherence to a 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;
(bh) 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;
(ci) procedures to ensure conformance with loan approval requirements;
(dj) a system to track and analyze exceptions;
(ek) 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;
(hl) 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.
(i) early problem loan identification procedures to assure the timely identification and rating of loans and leases based on lending officer submissions;
(jm) procedures to monitor previously chargedensure the re-off assets and their recovery potentialappraisal 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
(kn) compliance monitoring system to determine compliance with a comprehensive loan review process that quantifies the Bank's lending policies overall level of credit risk and laws, rules, and regulations pertaining to assesses the Bank's lending functionquality 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 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.
(4) Within sixty (60) days, management will provide the Board with written reports on a monthly basis, 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 violations of law, rule or regulation;
(e) the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (d) of this Article and paragraph;
(f) an analysis of concentrations of credit, significant economic factors, and general conditions and their impact on the credit quality of the Bank’s loan and lease portfolios;
(g) the identification and amount of loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and
(h) the identification of loans and leases not in conformance with the Bank's lending and leasing policies, and exceptions to the Bank’s lending and leasing policies.
(5) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program and systems developed pursuant to this Article.
Appears in 1 contract
Samples: Banking Agreement
