Credit Evaluation School Instructor eBook - Oct 2023

People:

Borrower: Medical Associates of San Helena, LLC (MASH) Guarantor: Hawkeye Pierce, MD (100% owner) Fully amortizing 15 ‐ year term note to buy out retiring partner • 1st lien on medical practice real estate @ 80% LTV • Closely held shares of business • Dr. Pierce's Guaranty New customer who only banked with this bank due to the low rate offered 202x debt service coverage ratio (DSCR) of 1.35x

Purpose: Payment: Protection:

Problem:

Prospects:

Potentially a very profitable relationship for the bank

Commercial Credit Quick Hitter ‐ Pass Ask student to review key points on this Ask students to rate: Pass, Criticize or Classify. Should be a pass rating: 1.35x DSCR; 80% LTV; no delinquency issues.