David Ruffin Principal IntelliCredit info@IntelliCredit.com David Ruffin is co-founder and principal of IntelliCredit, a division of QwickRate. He has extensive experience in the financial industry including a long and pronounced emphasis on credit risk in a variety of roles that range from bank lender to senior credit officer. QwickRate is an associate member of the Indiana Bankers Association. MARY ALICE AVERY mavery@wilmingtontrust.com 302.636.6127 CARMEL VIADO cviado@wilmingtontrust.com 702.866.2247 Trustee Services for Senior and Subordinated Debt and Trust Preferred Securities Investment Subsidiaries and Holding Companies Custody ENTITY MANAGEMENT DELAWARE AND NEVADA EXPERIENCE Wilmington Trust is a registered service mark used in connection with corporate and institutional services offered by certain U.S. and European subsidiaries of M&T Bank Corporation. Not all services are available through every domestic and international affiliate or in all jurisdictions. ©2024 M&T Bank and its affiliates and subsidiaries. All rights reserved. AMP-6681 240326 VF ▶ Perform stress tests, preferably paired with loan reviews, that go beyond providing theoretical losses. Also focus on suspect borrowers who could potentially move the needle on losses higher. ▶ Embrace practical and affordable portfolio analysis tools that provide early detection of weakening trends and emerging hotspots, particularly within your bank’s lending concentrations. Your loan portfolio is your DNA, so know what it is telling you before regulators arrive. Smaller banks remain laggards in this area. Waiting for call report data to depict loan quality is a fool’s errand, because as they say, “Those horses are already out of the barn.” We all join in the optimism of the lending officer ready to put recession fears behind them, but history and current conditions mandate that the industry keep its guard up and manage what appears poised to be the greatest level of credit stress since 2008’s Great Recession. 1 https://www.NBER.org/papers/w31970 2 https://bit.ly/MWBankFail 3 https://www.QwickAnalytics.com/QCBI/ 4 https://bit.ly/FedSR7-1 5 https://bit.ly/FedSR23-5 MAY/JUNE 2024 41
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