Financial institutions have been required to estimate the inherent risks existing in their various lending portfolios for many years. However, in recent years the accuracy of this estimate has experienced increased regulatory scrutiny and is frequently challenged by external auditors and examiners. As a result, many financial institutions find themselves overwhelmed with the process of estimating and documenting the Allowance for Loan and Lease Losses (ALLL) on a monthly or quarterly basis.  For many financial institutions, the process can take several days if not longer each month and can require involvement from several of the institution’s finance, credit, and/ or lending staff.  This process is labor intensive, manual, and often prone to error, through the use of an assortment of data bases, spreadsheets and other documents. Additionally, the financial institution must stay current not only with published regulatory guidance, but also with new accounting standards being issued from FASB.

Bankers can minimize the inherent imperfections of this estimate by adopting a supportable and consistently applied methodology and providing verifiable documentation of their findings. This methodology must include a systematic approach in which the institution carefully examines the impact of their loan policies, and implements a structured approach to evaluating the losses inherent in their portfolio.  Current spreadsheets and policies may or may not be adequate to meet these demands.  Any efforts to streamline the process and better document the financial institution’s assumptions are beneficial in defending the estimation of the ALLL in a comprehensive manner.

Turner and Associates, Inc. is prepared to review the bank's current system and recommend changes when necessary or assist in the preparation of a new structure if one is not in place. Additionally, Turner and Associates has teamed up with Sageworks^® , a leading provider of loan portfolio credit risk and management solutions to financial institutions. Tom Ryan of Turner and Associates is certified to train financial institutions on the Sageworks Surety module.

Strategic planning within a community bank is necessary to establish a profitable, organized approach to planning for the future. The goal of strategic planning is to increase profitability through a heightened focus of management and staff towards attaining specific goals. Turner and Associates, Inc. is prepared to assist community banks with their strategic planning process by analyzing their various lending portfolios and reporting our results and conclusions to management. This lending portfolio analysis includes: investigating and reporting on each portfolio's sensitivity, risk quality, industry concentration, and projected charge-offs. The results of our findings provide management the tools to determine the programs and actions required to support the revenue requirements of the strategic plan.

The lending policy is, with few exceptions, an accepted and indispensable part of the lending function. Its importance and content dictate the need to maintain a high standard of quality and a high degree of efficiency in its preparation. We believe that a lending policy should be written to provide information and support to the current lending structure, thus minimizing any change to established standardized procedures. Turner and Associates, Inc. is prepared to review and comment on the strengths and weaknesses of the bank's current lending policy or assist in the preparation or revision of the bank's proposed lending policy.

The collection function in a community bank is a necessary ingredient to identifying potential problem loans before its too late. The collection department should work closely with the loan officers and the managed asset department as collection issues become apparent. Turner and Associates, Inc. assists community banks by designing a collection department that will effectively monitor past due accounts and proactively collect these accounts by placing timely phone calls and sending appropriately worded collection letters.

Our initial visit, anywhere within Ohio, Indiana, Pennsylvania, Michigan or Kentucky, will be free of charge. Any advice that is offered and any analysis provided during that initial visit are never billed to our clients.

Upon the engagement of our services, our fees and costs will vary depending on the type of engagement that is required. For example loan review services can be provided on an annual, semi-annual, quarterly or monthly basis. They can be provided for certain industry segments and for specific lenders. As such, loan review can be contracted on a fixed fee or hourly basis depending on the needs of the bank. Our other services, except managed assets, are typically provided on an hourly basis, with hourly rates based on the experience level of the Turner and Associates, Inc. personnel required for the engagement. The managed asset department typically requires either a "sounding board" approach which is billed at a flat rate monthly, or a more hands-on approach which is billed based on a percentage of dollars collected or recovered. In either case an experienced managed asset specialist would be available via phone or in person to answer management's questions regarding problem loans. Of course every bank's needs are unique, and Turner and Associates, Inc. can adapt our engagements accordingly. Note that all out of pocket expenses incurred on behalf of a client are reimbursed to Turner and Associates, Inc. monthly.

Our hourly rates and fixed fees are very competitive compared with others in our profession. We understand that our clients require a high level of service while working within the framework of a tight budget. At Turner and Associates, Inc. we work with our clients up front to structure a cost-effective engagement that provides affordable services that our clients require.