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For this exam, what areas of focus were you relieved you spent a lot of time preparing for?
Loan file reviews and documentation exceptions.
Now that the exam is complete, what areas did you wish you had spent more time on?
ALLL methodology.
What exam questions did they ask that were unexpected?
Explanation of qualitative and environmental factors in the ALLL.
Based on how this exam went, what will you do differently to prepare for your next exam?
Continue collection of past due accounts, work on documentation exceptions (taxes, inspections, financials...), keep timely reviews on larger credits, document, document, document especially in board minutes, RESOLVE OUR ALLL METHODOLOGY TO INCLUDE QUALITATIVE AND ENVIRONMENTAL ADJUSTMENTS, fine tune our IRR and contingency funding measurement and methodology.
In preparation for this exam, was there any work you did (such as a XLS, report, binder, etc) that really impressed the examiner? Please explain (and be sure and sell it on the Exchange):
Not that they mentioned, but we uploaded much more documentation than in past exams. Having recently written up loan reviews seemed to speed up the exam and allowed us to identify and correct documentation exceptions that arose prior to the exam.
Area of Focus | What should your peers know about this focal point? |
| Loan Quality | Measure and control Past Due / Gross Loans, Texas Ratio, Have recent reviewsd of large credits, have firm plans for collection on the dicsuss only credits. |
| Loan Loss Reserve | Have qualitative and environmental adjustments in the ALLL and have your model validated. |
| IT/BSA | These areas were much streamlined from prior exams but we had made improvements to our policies, procedures, and training in these areas. |
| Training | Document training on all relevent areas both outside general training and internal policy training |
| Interpretation of Regulations | Be prepared to document and defend your interpretation of regulations. |
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