Credit Evaluation School Instructor eBook - Oct 2023

Internal Use Only

Loan Selection Condition of the bank • Previous Examination Reports • Uniform Bank Performance Report • Correspondence Risk Focus • Commercial loans

• Real Estate • Consumer

• The condition of the bank is one of the most important considerations in loan scoping. • Review the prior exam reports, UBPR, and correspondence specifically for loan related issues. • If the prior exam indicated that the loan department was not proactive in identifying problem credits, we would want to take that into consideration in determining scope. If UBPR shows a spike in past due ratios, we would want to investigate further. If correspondence indicated that there has been a change in loan department management, we would want to consider any pending changes. • We may also want to focus our risks in areas of known risks such as ADC loans, or ag loans, or whatever the current focal point may be.