Credit Evaluation School Dec 2022

Internal Use Only

Loan Selection Coverage • Loan volume or particular area of the loan trial • History can dictate how much to review • Confidence in management also lends to coverage Resources • Number of employees assigned to examination • Length of time allowed on site/scheduling

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Internal Use Only

Standard Review Items  Previously Classified  Internal Watch List  External Loan Review  Past Dues • Delinquency Threshold • Files worked or discussed only  Nonaccrual  Restructured  Insider and Related-Interest  Participations

 Loans above the “cut”  Letters of credit

 Unfunded Loan Commitments  Financed Sales of Other Real Estate  Unusual Loans • Capitalized Interest • Out-of-Territory • Long-term Unsecured • Evergreen  New Loan Sampling  New Loan Officer Sample

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