Are you on track for CECL transition?
All financial institutions are required to follow the CECL model – some starting in 2020 and the rest soon after. The new requirements to use historical information, current conditions, forecasts, and macro market conditions for estimation, will put greater demands on the institutions’ credit and information technology teams to generate significantly more data…Continue Reading
Credit Training Helps Sharpen Internal Credit Analysts
At Cobblestone Management we recognize that primary challenges for community banks today is finding the capacity to develop internal credit analysts and junior lenders. We take pride in keeping our team at the forefront of the ever-changing regulatory landscape. Staying abreast of these changes, as well as staying on top evolving technologies, tools, and processes, is integral to ongoing team development and training.Continue Reading
Using Stress Test to Leverage your Balance Sheet
In our current environment of heightened regulatory scrutiny on construction and development lending, one ought to be thinking about key elements of your construction portfolio and how it supports growth and aligns with your business objectives. If your construction loan portfolio is approaching or has grown over 100% of capital, then it is likely you will be subject to increased scrutiny from your regulators. An expert third-party validation can help you execute your strategy and achieve your goals.Continue Reading
Policy Exception Reporting is a New Focal Point of Regulators
One of the benefits of having so many financial institutions as clients is our ability to stay constantly informed regarding regulatory “hot-button” issues. Much of those issues have revolved around stress testing, credit underwriting support and enterprise risk management.Continue Reading
How Massachusetts Banks Have Grown in Commercial Lending Over the Past Year
In order to understand where your institution fits in the competitive commercial lending marketplace, peer analysis and the periodic measurement of industry trends is a must. As we consider it one of Cobblestone’s primary missions to help financial institutions remain informed, we did some number-crunching on your behalf to determine annualized commercial lending trends up to Q2 2017.Continue Reading
Regulators Outline Priority List for 2017 Safety and Soundness Exams
The OCC, which has been at the forefront of regulatory scrutiny of community banks, outlined its operating plan and list of priorities for its examiners in 2017. Specific to its review of commercial lending activities within community banks, the OCC operating plan highlighted credit underwriting as a major area of focus.Continue Reading
Are You Paying the Right Price for Underwriting & Analysis?
In the January 2017 issue of the RMA Journal, in an article titled “Banks Needn’t Fear a 1984 Scenario”, the RMA quantified the cost of underwriting a commercial loan. Their estimate specific to the cost of credit analysis was $6,140 per underwrite.Continue Reading