April 2020 Newsletter  

There was a scene from the movie “Anchorman” of street fight among rival newscasters.  Afterward, the character Ron Burgundy (played by Will Ferrell) comically said “That really escalated quickly…it really did!” That is how I am feeling right now about COVID-19 or the “coronavirus” pandemic. Not that there is anything funny about COVID-19, but just how fast this really escalated. The sudden impact it has had on everyone and every business and your financial institution is beyond what I can cover in this article or that you likely have time to read with the pace that everything is happening. It’s truly an event and crisis unlike anything that I have ever experienced or witnessed in my 40-year professional career.

I am going to assume the same holds true for you personally and professionally. I have talked to many bankers in the past week and they all say they are in the midst of adjusting to working from home, closing their lobbies, and conducting triage on customers by performing countless loan modifications to provide support and relief. Safety of employees and responding to customers is your #1 priority at this time. At Suntell, we understand and will support you through these difficult times.

The Square 1 Credit Suite is loaded with a large number of loan portfolio management and credit risk management tools that you will likely need as your commercial and agricultural loan portfolio comes under stress in the coming year resulting from the current and ongoing COVID-19 business shutdown. Examples include:

  1. Higher Loan Originations – increasing demand for emergency cash flow funding or refinancing terms.
    2. Higher Loan Delinquencies – requires efficient past due management.
    3. Higher Credit Defaults – requires an efficient watch list and action plans.
    4. Volatile Credit Risk – requires efficient credit risk rating and reporting.
    5. Increased Board Communication – requires efficient generation of loan portfolio reports to the Board.
    6. Stress Testing – now is the time to stress test your CRE loans or your entire portfolio to assess exposure and ALLL funding.

 

Be safe out there!

Thank you,

Duane Lankard
Suntell CEO and Founder

Makers of the Square 1 Credit Suite