Credit Risk Management

Loan Review

Cadre’s proven loan review methodology provides management with a comprehensive, objective credit quality review.  Information developed during the review enables management to better gauge risk and potential loss in the portfolio, address weaknesses in individual credits and improve credit risk management and correct documentation errors.

Loan reviews are performed by experienced lending and credit risk management professionals, employing sampling and analytical methods compliant with regulatory requirements. 

Loan review engagements are completed through a combination of on and off-site effort.  This combination of on and off-site work helps our clients manage the costs, while ensuring that the quality of the review is maximized.

A typical engagement involves an initial on-site visit to:

  • Evaluate aspects of the financial institutions lending program;

  • Review availability and quality of credit documentation;

  • Obtain agreement on sample size, selection methodology and workflow process, and

  • Complete the initial review work.

Following the on-site visit, Cadre’s loan review professionals will complete quarterly reviews of segments of the financial institutions loan portfolio off-site, reviewing scanned images of loan and credit file documentation. 

For each loan relationship selected for review, Cadre will independently assess the quality and collectability of the loan and assign a risk rating, utilizing the Bank’s existing risk rating criteria.  Any changes in risk grades will be thoroughly reviewed with appropriate lending and credit administration staff. 

Cadre will provide periodic reports of our work including:

  • Details of all loans and relationships reviewed;

  • Risk ratings for each loan and loan relationship reviewed;

  • Recommendations for downgrades or upgrades of loan grades previously assigned by the Bank;

  • Conclusions regarding the overall quality of the loan portfolio; and  

  • Details of loan documentation or policy and regulatory exceptions on a loan-by-loan basis.

Cadre’s loan review provides management and Directors with critical insights into the quality of the financial institutions credit portfolio.

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