Seven Habits of an Effective Loan Committee

Why Should You Attend:

Your bank’s credit administration seems disconnected, un-organized and free flowing and lacks effective management oversight; or you are in a lending position and the credit administration function at your bank fails to provide structure, guidance and leadership. If any of these scenarios point to you or your financial institution, this course will address the factors you need to know to make a positive difference in the effectiveness of your loan committee at your bank.

The loan committee is the body of individuals within the bank charged with choosing the proper type of risk to bring into the loan portfolio while yielding maximum returns for the bank. The importance of this committee is paramount to a bank’s success and the board should have input in its development and functions. What are the seven effective habits of an effective loan committee? High performing banks with an outstanding credit culture all have certain characteristics in common in their credit approval process. This course will explore these essential areas, while providing attendees insight into the role and purpose of the loan committee.

It will also discuss respecting and utilizing the multiple personalities on the committee, such as:

• The Supporter
• The Pragmatist
• The Clock Watcher
• The Rule Stickler

Areas Covered in the Webinar:

• Recognize the documents required to complete the five steps in the documentation process
• Have a good working knowledge of the purpose of each document
• Be able to provide a broad overview of the loan documents’ provisions to borrowers
• Be exposed to some loan processing management techniques
• Obtaining the right information and knowing how to analyze it
• Communicating effectively with other committee members and loan officers
• Taking minutes that matter

Who Will Benefit:

• Commercial Loan Officers
• Consumer Loan Officers
• Credit Analysts
• Loan Review Personnel
• Compliance Officers
• Internal Auditors
• Branch Managers
• Credit Administration
• Loan Operations Staff
• Participants with some experience or prior class work in analyzing financial statements and/or credit analysis

Instructor Profile:

Robert Hawkins began his banking career at Compass Bank (now BBVA) as a management trainee in 1978. In May 1981, he joined the Federal Reserve Bank of Atlanta as an assistant bank examiner. He received his commission in 1985 and was promoted to senior examiner in 1991.

In the latter role, Mr. Hawkins led supervisory events at the district’s largest and most complex banking organizations. On three occasions, he was chosen by the senior officer group to participate in the Shared National Credit Program which is a joint, interagency initiative that was created to evaluate and assign the appropriate risk ratings to credits, $20 million and above, shared by two or more financial institutions.

In 2004, he was promoted to Assistant Vice President in Community Bank Supervision. In this role, he supervised three examination teams, 25 banks and a myriad of bank-holding companies. He served as an instructor for the Federal Reserve Board of Governors’ Credit Risk Analysis School and he was a frequent panelist and speaker. He retired from the Reserve Bank recently.

Topic Background:

Bank directors’ and executive management’s responsibilities include: setting the course for the bank; selecting competent management; measuring progress and maintaining asset quality. The focus of this training program will be on maintaining asset quality or the “A” in the CAMELS rating system.

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