Best Practices in Risk Ratings & Credit Reviews
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Every credit is unique but your risk rating approach should not be. A standardized approach to risk ratings and reviews gives your organization an advantage in how to manage risk in your loan portfolio. Come listen to this panel of experts as they share best practices on how they establish, adjust, and execute risk ratings in their financial institution.
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Best Practices in Risk Ratings & Credit Reviews
- 1. BEST PRACTICES IN RISK RATINGS & CREDIT REVIEWS A panel discussion
- 2. Confidential & Privileged DocumentConfidential & Privileged Document Overview of Pinnacle Bank • Stock Symbol: Nasdaq/NGS PNFP • Founded in 2000 in Nashville, TN • Office locations: 115 offices in 11 primarily urban markets in Tennessee, North Carolina, South Carolina and Virginia • $22.2 billion in assets • Full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners • Vision: Best financial services firm and best place to work in the Southeast
- 3. Confidential & Privileged DocumentConfidential & Privileged Document Overview of Omaha FSB Bank • Security National Bank is one of the Midwest’s largest privately-held community banks with nearly $860 million in assets. • Family-owned bank with 13 retail banking locations in the Omaha Metro Area • For more than 53 years, the bank has offered comprehensive financial solutions for business and private banking, consumer and mortgage needs.
- 4. How many risk factor dimensions are in your institution’s rating and monitoring system and how did you arrive at that conclusion?
- 5. What does your grading system look like? How many grades? What are the boundaries? What product lines are included or excluded?
- 6. How granular does your institution look at the risk ratings? Do you feel it is adequate or too much? What are the benefits of this approach?
- 7. Who assigns and monitors ratings at your institution and why?
- 8. Risk rating models versus personal judgement? Why?
- 9. What role do risk ratings have in your loan review process?
- 10. How is risk rating incorporated into profitability, pricing and relationship manager compensation?
- 11. For more information contact Mike Horrocks Mike.Horrocks@bakerhill.com @mikehorrocks
Editor's Notes
- Gary L. Pool – Pinnacle Bank, Nashville, TN. Gary enjoys a variety of outdoor activities and likes to travel. His primary funding for those activities comes from his 15 years with Pinnacle Bank. He began his career at Pinnacle in Internal Loan Review and preparation of the ALLL. He is currently a Loan Portfolio Analyst in the Retail Lending area. He is a member of Pinnacle’s Retail Credit Committee and the Credit Policy Committee. He is responsible for the administration of the Baker Hill Portfolio Risk Manager module. Previously, he was an examiner with the Office of the Comptroller of the Currency for 18 years. He examined banks from $25 million to $10 billion in asset size. He taught several schools at both the district and national level. Gary is a graduate of Texas Tech University and currently lives in Franklin, TN.
- Vince Pille, Executive Vice President & Chief Credit Officer Security National Bank of Omaha 1120 So 101st Street Omaha, NE 68124 402 449-0905 vpille@snbomaha.com Professional Experience I have 38 years banking experience; all in commercial lending and loan administration. Security National Bank (1991-present)- Executive Vice President, Chief Officer; Supervise credit and loan administration functions for $858 million community bank with $523 million in loans, Chair Loan and Asset Quality Committees, also serve on the Board of Directors Norwest Bank (1987-1991)- Business Banker; Manage banking relationships with small businesses in Omaha FirsTier Management Consultants (1985-1987)- Field Consultant; Analyze lending activities of community banks, report findings and make recommendations Omaha Bank for Cooperatives (1980-1985)- Loan Officer; Manage lending relationships with agricultural cooperatives (primarily grain elevators and farm supply businesses) Professional/Civic Affiliations I have held numerous leadership positions in various organizations. RMA (Risk Management Association (National organization of commercial lenders & other credit professionals) Community Bank Council member Douglas County CDBG Re-Use Loan Committee Chairman of Omaha Chamber of Commerce Central Council, served as Director of Omaha Chamber of Commerce Chairman of RMA Midlands Chapter (local chapter of national RMA) President of Kiwanis Club of Greater Omaha Trustee and Administrative Board Member of St. Paul’s Methodist Church, Papillion Cub Scout and Boy Scout Leader Volunteer Coach for numerous youth softball, football and wrestling teams Trustee for Sarpy County SID #38 Trustee/Clerk for Sarpy County SID #231 Education/Professional Development Blair High School- 1976 Kearney State College- 1980 BS Business Administration IBAA Graduate School of Community Bank Management, University of Texas Numerous seminars for commercial lending and related activities Personal Wife- Cindy, four adult children Residence- 1402 Clearwater Circle, Papillion NE 68046 About Security National Bank of Omaha Community Bank founded in 1964 by the Landen family who still own and manage the bank 13 full-service branches, Home Mortgage Department and Wealth Management/Trust Department in Omaha, NE/Council Bluffs, IA Wealth Management/Trust and Loan Production Office in Des Moines, IA Niche markets are C&I Banking for family-owned businesses and Private Banking/Wealth Management for high net worth individuals Total Assets $858 Million, Total Loans $523 Million, WM Assets Under Management $1.2 Billion 217 Employees
- For example, watch lists, troubled assets, etc.