Commercial Loan Policy
Commitment Report
Spreads
Industry
Ncino
100
This is the most recent financial reporting change in policy that moved the requirement limits up for these two types of statements being required with affiliated hard exposure to $5MM and above but less than $10MM and $10MM or above.
Found in Financial Reporting 2.06
What is Reviewed and Audited quality financial statements?
The lack of audited or reviewed statements in these instances would constitute an exception to CLP 2.06B Business.
100
This is the first section of the Commitment Report
What is the Request section?
100
This is the first document that you will use to complete the spreads.
What is the Balance Sheet or Assets on the balance sheet.
100
All of these industries combined are deemed of highest risk to BOKF are categorized in which bucket?
What is Bucket C?
100
This is the name BOKF gave to the NCino Platform
What is INC?
200
80% and 50% are the standard advance rates for revolving lines of credit.
What are qualified accounts receivable and qualified inventory?
Found in 2.04 Collateral Policy
Advance rate in excess of 80% is citable as an exception CLP 2.04C LTV.
200
This is the main part of the commitment report that verifies the borrower's capacity and is the reason we have a job?
What is the financial analysis?
200
Revenue or Sales is the top line for this statement.
What is the top or first line of the Income Statement?
200
This industry type has balance sheet trends with inventory that spoils, no accounts receivable, and are deemed part of the highest risk bucket C category.
What is the restaurant or service industry?
200
This is the name of the tab within the party under the details section used to access Commitment Reports using the magic wand?
What is Product Package?
300
This section of loan policy discusses the proper structure of a credit facility to include short term extensions, renewals, and amortization on loans with various types of collateral.
What is Permitted Terms?
Section 2.03
By policy, only one extension is permitted for a period not to exceed 90 days. Multiple extensions and/or extensions exceeding 90 days are exceptions to policy and should be cited as an exception to CLP 2.03 A Term.
300
The part of the CR should include the borrower's industry, primary revenue source, owners, management team, and competition.
What is the borrower background?
300
This section of the balance sheet ties to the Income Statement.
What is the Net Worth or Equity section?
300
This industry is the creation or production of goods using machines, tools or chemicals
What is Manufacturing?
300
This is what the banker has to complete for a new loan request?
What is opportunity?
400
This section of policy provides the team guidance of the level of background checks, credit reports, and monitoring requirements for new prospects and then applies when existing relationship grow above $1MM, $1MM to $5MM and over $5MM.
What is required due diligence / monitoring?
2.05 - Required Due Diligence/Monitoring
Tier 3 is under $1MM
Tier 2 is over $1MM
Tier 1 is over $5MM
400
This section of the CR justifies and provides the reader the factors (rationale) or assessment of the future probability of default.
What is the Risk Rating Rationale or Risk Rating Justification?
400
This is the most commonly missed current liability when spreading financials since we might have to calculate it.
What is Current Portion or Maturities of Long-Term debt?
400
This industry consists of businesses that buy goods in bulk from suppliers or manufacturers and then sells the product in smaller quantities, to retailers, or other businesses?
What is wholesalers or distributors?
400
This is the object tied to a covenant.
What is COMP (covenant compliance number)?
500
The operating company is sold and the real estate term loan is then converted into an income producing property (Non-Owner Occupied) which requires additional reporting requirements such as rent rolls and operating statements (greater than $500M).
What is 2.06 Financial Reporting on Income Producing Property?
Multi-Tenant requires semi-annual
Single-Tenant requires annual (as long as lease exceeds term of the loan).
500
This section of the CR protects the bank and confirms/verifies the value of a secondary source of repayment?
What is the collateral section?
500
There are 3 ways to change the Equity or Net Worth section of the balance sheet.
What are .....
Profit / Loss
Distributions/Contributions
New Debt / Payoff Debt
500
This industry type typically attempts to break-even on an annual basis.
What is a non-profit or not for profit?
500
This is what underwriters use to track their own assigned tasks.
What is the home page or dashboard?