Where do I start with Commercial Lending?

Eric LaPlante- Product Management, Baker HillElaine Yates- System Administrator & Commercial Credit Analyst,

Republic Bank & Trust Company

Commercial loans are like snowflakes…

Soon enough, you’re in over your head…

What now?!?!

Copyright © 2016 Baker Hill Solutions LLC – Confidential & Proprietary

Data Data Data

Everywhere!!

Fighting technology

Best commercial pathWhat does your current commercial process look like?

The Holy Grail

Pricing

4.3%

5.1%5.4%

Baker Hill Advisor for Relationship Lending

“Client information, account information, loan requests and relationships can be seen in one screen, auto tag document or query.”

Elaine YatesRepublic Bank and Trust Company

Baker Hill Advisor for Relationship Lending

“Think outside of the box to allow the system to reduce repetitive typing.”

Elaine YatesRepublic Bank and Trust Company

• $4.6 Billion Bank• 800+ associates• 44 branches in five states• Bank was formed in 1977 as Republic Bank of

Shelby County – Shelbyville• Went public in 1998

Commercial Lending ProcessLoan Origination/Info

Gathering

• Scope of lending opportunity(s)

• Compilation of base information to support lending opportunity(s)

Needs Analysis/Deal Structure

• Credit Analysis• Relationship

Exposure• Credit Memo/Write-

up

Credit Decision

• Approval Authority • Approval Conditions

Client review & acceptance

• Commitment letter• If negotiation

required, go to Step 4

Processing

• Verify Approval condition(s) will be met

• Pre-closing checklist

• Financial covenant compliance

Pre-Closing/ Documentation

• Pre-Closing checklist

• Final approval• Preparation• Validation • Compliance

Closing

• Closing instructions / checklist

• Execution of closing documents

• Funding

Post-closing / funding

• Closing Documentation Review

• Perfection of Collateral

Core Upload

• Booking to core (loan boarding)

• File creation• Exception

management • Compliance

Client acquisition and retention Credit quality and origination Compliance and post closing funding

Step 1 Step 2 Step 3 Step 4

Step 5 Step 6 Step 7 Step 8 Step 9

Approval Process

• Underwriter reviews the credit memo, the financial spreads and any additional information they have requested.

• Underwriter will place comments in the Touch History of the opportunity. Then they will change the stage to the next process and use status for the decision. If decline, the officer can bring it to another underwriter for an override.

• Using the Touch History lets everyone see all of the decisioning comments from all the underwriters who touched the opportunity.

• Decision tab shows the final decision

Other documentation that could be created

• Order forms (appraisal, Title, Environmental)

• Welcome Letter• Flood Letter• Appraisal Cover Letter• Notice of Credit Decision• 1-4 Family Appraisal Waiver• Deposit relationships• Loan Summary Sheet• Statement Tracking Letters

Overall company gains

• Successful Implementation• Improved our overall process• Expedited our approval process• Reduced keying of account data and

annual review information• Ability to perform more task with less

action needed• More communication with less phone calls• Going Green (We went paperless!)

What are you thinking about now?• Easiest area to attack• Needing to relook at the big picture of

how we handle commercial lending• Time to bring in consulting and or review

our strategy with an outside view• Portfolio growth (Pricing and

Profitability)• Benefits of working in one solution• Technology (Most cases not the best

place to start)• Where do I start!?!?!

THANK YOU

Optimize,

Change, Innovate#BHCM16@bakerhill

For more information, visit our Solutions Showcase, or, contact your presenter at Eric.Laplante@bakerhill.com