Credit Evaluation School - May 2023

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

Internal Use Only

Standard Review Items

 Loans above the “cut”  Letters of credit

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

 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