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Loan Review
During their customized loan review process, our specialists will assess your loan policies, procedures, internal grading systems, delinquency reporting and collection efforts, as well as your loan approval process, underwriting, and documentation standards and systems.

Loan Review

Loan reviews are strong risk management tools for banks

Did it make you think about the quality of your bank’s loan portfolio when you heard about the FDIC quietly taking control of another community bank? In the first six weeks of 2009, the FDIC took control of 15 community banks compared to 21 community banks in all of 2008. 

Customized loan review audits to meet your unique needs

As a result of these tough economic times, more and more community banks are turning to the community bank specialists at Plante & Moran for their assistance with loan reviews of the bank’s various loan portfolios. Our loan review specialists provide risk management services to more than 200 community banks with assets ranging from $100 million to $3 billion.

When you engage us for a loan review we will bring that experience to your bank, listen to your concerns, and customize our approach to meet your unique situation. 

Evaluation of lending policies

Our loan review audit process begins by evaluating your organization’s lending policies, procedures, and quality control activities. We look for any significant credit quality issues that may require management’s attention, as well as affect our strategy for conducting the loan review.

Areas to be considered in the credit administration assessment include: 

  • Loan policies and procedures 
  • Loan authorities and the approval process 
  • Loan underwriting and the credit analysis function 
  • Loan documentation standards and systems 
  • Internal loan grading systems 
  • Delinquency reporting and collection efforts

Issues and suggestions resulting from the credit administration assessment will be discussed with management. 

Testing credit quality

Following the assessment, we will begin sampling your loan portfolio according to review parameters provided by the bank. For most banks we are looking for potential problem loans in the bank’s portfolio that have yet to be identified. We will also review loans on the bank’s watch list and analyze bank reports regarding renewals, extensions, and delinquencies to determine if any trends in these areas are cause for concern. 

Suggested strategies to control risk

You can depend on us to keep you informed of our findings every step of the way. We’ll meet with bank management throughout the loan review audit process and consult with management before finalizing our reports.

An effective loan review program is essential to maintaining value and viability of a financial institution. Let us help you with yours.

Contact Us

Jim Bowman

877.622.2257, x74559

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“We are impressed with the fresh ideas the professionals on our Plante & Moran team provide us. And their quick turnaround on our year-end financial statements is amazing.”

Jim Mensching, Senior Vice President
Itasca Bank & Trust Co.