Due-Diligence Review Services

Our experienced loan professionals can conduct due-diligence and/or valuation of a loan portfolio for purchase or sale. They will perform an independent review and appraisal of the portfolio based on the stated parameters and objectives of the engagement.

Typically, a due-diligence review of a bank’s loan portfolio will specifically address:

• All cited assets and past-due loans
• All loan relationships of $1MM and greater
• All Reg. O loans
• Grading and Reserve adequacy and recommendations

In addition, the review will generally address:

• Sample of loans that represent a cross-section of the loan portfolio
• Selection of loans that have attributes that may suggest a credit weakness
• In total, a review of loans in dollar terms that represents 50%-70% of the portfolio
• Review of Exception, Past-due, and Overdraft reporting
• Observations of the loan approval and underwriting processes
• Observations from the review of Loan Administration
• Observed concentrations of risk

The above is offered as an example of the scope of due-diligence; the actual scope of a due-diligence review will be determined based on the client’s specifications. In a valuation of a commercial loan portfolio for purchase or sale, all of the loans would be reviewed.

Our years of experience in credit underwriting, lending, loan review, due-diligence, problem asset management, and loan asset sales make us a valuable resource in the evaluation of a loan portfolio.