Supervisors Symposium - December 2023

Internal Use Only

Banks must start emphasizing forward looking indicators over lagging indicators . . .

Credit Predictive Indicators / Exceptions

Credit Indicators

Covenant Exception Trends

Charge off trends

Performance Based Lagging Indicators Helps to assess current asset quality and overall

Policy Exception trends

Delinquency Trends

Forward Looking Indicators

Term/Condition Exceptions

ACA Trends

Helps to assess risks that drive the performance ratios

Non accrual Trends

Pricing Exceptions

financial condition

Concentration Trends

TDR Trends

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Internal Use Only

And minimize use of credit elements that lead to problems . . .

Credit Predictive Indicators / Risk Appetite

Credit Predictive Indicators / Risk Appetite

New Products and services

Leveraged Lending

Out of territory lending

CRE Pipeline for renewal

Forward Looking Indicators

Extended Amortizations

Cash out refi’s

Helps to assess risks that drive the performance ratios

Originate to sell

Non recourse

Concentration Trends

Originated or Purchased

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