Credit Evaluation School, Sacramento, CA

Red Flags

Failure to Detect Existing and Emerging Loan Problems

Collection Difficulties Reduces Quality Time in Servicing Remaining Loan Portfolio

Failure of Early Recognition of Losses

Borrower Delays in Providing Financial Information

Unauthorized Capitalization of Accrued Interest

Red Flags Loan Concentrations Excess Out of Territory Loans High Loan Growth Excess Off-Balance Sheet Items, i.e. Loan Commitments and Letters of Credit Trends in Local and Regional Economies