The goal of the loan review program is to provide a custom designed process, which will address the needs of each individual client bank with a sound and independent credit evaluation. The end result will clarify management’s loan risk position, while satisfying the regulator’s scrutiny.
Capital Partners’ loan review program is a cost effective management tool. The program is heavily reliant upon active participation by and active discussion with management and line lenders. An objective, systematic review of the loan portfolio is provided with a quantitative analysis of the bank’s risk position. Furthermore, the program utilizes consistent risk clarification and recommends remedial action where necessary.
The fully automated loan review process will supply the bank with the following information:
An additional benefit of Capital Partners loan review program is the positive feedback it has received from various state and federal regulators because of the credit administrative reporting and the remedial action recommendations. Our clients have found this program has reduced the cost of the regulator’s examination when used in a proactive fashion.
Due Diligence, as performed by Capital Partners, is the conducting of a full and complete analysis of a financial institution prior to its acquisition or merger. The comprehensive evaluation of a targeted institution is, very simply, sound business. Far too many banks can trace their troubles to an ill-advised acquisition.
The preparation for a Due Diligence goes far beyond merely an examination of asset quality, or what is perceived to be asset quality. Even though the time involved in such a survey is brief, the analysis, by its very nature, requires specific information and has a specific scope and direction.
Among the areas reviewed during a Due Diligence are:
Banking’s recent history clearly exhibits the exciting rewards for institutions entering an acquisition or merger from an informed, practical starting point. Performed correctly, this move can add real value for the stockholders through new markets, economies of scale and geometric growth of the new, larger organization. The Due Diligence process follows the proven business practice of establishing value before establishing a price.