Presenter: Aaron Lewis, Young & Associates
Effective loan portfolio management is critical to the safety, soundness and profitability of the community bank. Each institution is unique and through its board of directors and senior management will adopt a lending strategy in order to maximize shareholder value. This presentation will discuss institution credit culture and philosophy, including practical steps that can be taken to communicate management’s philosophy to front line staff. In support of effective portfolio management this presentation will touch on a broad range of topics including the importance of diversity and concentration management, watch list management, and stress testing. The presentation will conclude with red flag practices which may negatively impact the bank’s loan portfolio which could lead to income loss, directly impacting capital. Each topic identified below could be the subject of its own webinar, it is the intention of this presentation to provide a comprehensive overview of Effective Loan Portfolio Management.
Items to be covered include:
- Identifying your bank’s lending philosophy and communicating this philosophy to front line staff
- The importance of a strong sales culture and its impact on portfolio diversity and strength
- Watch list management and impact on non-performing loans
- Understanding the need for consistent and meaningful top down and bottom up stress testing
- Defining and actively managing concentrations
- Practices to avoid in managing the community bank portfolio
Target Audience: This presentation is intended for midlevel management within the community bank lending discipline. Material presented will range from immediate to advanced, however will be presented in a way that is understandable for those with limited portfolio management experience.