Higher examiner expectations in loan documentation, administration and credit analysis have made it harder for bankers to keep up, especially those trying to do loan review part-time. Midland National Bank President, Ron Lang, has hired the independent loan review team at BBOK for nearly a decade to perform a semi-annual loan analysis. Lang discusses the benefits of using an outside firm for loan review.
Q: Why has Midland National Bank outsourced the loan review process?
Lang: Community banks by nature revolve around customer relations and that relationship can make it difficult to remain unbiased. The BBOK loan review team removes familiarity and reviews the loan strictly on facts and numbers. They help us make sure we are looking out for the bank first and foremost.
Q: Why did your bank choose BBOK?
Lang: BBOK is a service provider for banks and a bank themselves, so they are personally dealing with loan activity daily for their bank and their customers. An accounting firm may be qualified to do loan analysis but at the end of the day they are an accounting firm. And Todd Schoenhofer is a former bank examiner so he has been on both sides of the table. They are assistive, fair and level-headed.
Q. What are some of the deliverables you receive?
Lang: Our board appreciates BBOK’s depth of analysis and reporting. BBOK’s ability to show our bank’s performance in relation to peers in the Midwest region is always insightful. Once we get BBOK’s report we share it with our board and show them how we are implementing their suggestions. Seldom do we disagree with BBOK’s recommendations. Their suggestions and analysis are independent for a reason and that benefits our bank.
To see a loan analysis sample or learn more about how BBOK can help your bank improve lending policies, procedures, processes and personnel, call Todd Schoenhofer at 800.999.5725.