Credit Evaluation School Instructor eBook - Oct 2023

MATCH THE RED FLAGS TO THE EXAMPLES PROVIDED

Over ‐ Lending To Individuals And Industries

• “Since hiring Felicia and giving her loan authority, our loan growth has skyrocketed. Despite this economy, Felicia has been able to increase our loan portfolio 40 percent! She has the highest loan production of anyone and customers are lining up to meet with her. Go Felicia!”

Inexperienced Loan Officers

• “Cashy McCash ‐ Face has total exposure of 28 percent of Total Capital, but this is not of concern due to high levels of liquidity Cashy has in a trust. We’ve always leant him money and he’s always paid.”

Inadequate Staffing

• Smalltown Bank performs a document review of all newly originated loans within tweleve months of their origination.

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MATCH THE RED FLAGS TO THE EXAMPLES PROVIDED

Over ‐ Lending To Individuals And Industries

• “Since hiring Felicia and giving her loan authority, our loan growth has skyrocketed. Despite this economy, Felicia has been able to increase our loan portfolio 40 percent! She has the highest loan production of anyone and customers are lining up to meet with her. Go Felicia!”

Inexperienced Loan Officers

• “Cashy McCash ‐ Face has total exposure of 28 percent of Total Capital, but this is not of concern due to high levels of liquidity Cashy has in a trust. We’ve always leant him money and he’s always paid.”

Inadequate Staffing

• Smalltown Bank performs a document review of all newly originated loans within tweleve months of their origination.

17