RMPI Consulting, LLC – Your Risk Management & Process Improvement Specialists – Tel: 617-973-5742
Strategic Thought Leadership for Community Banks

Effective Loan Workout
It is critical for financial institutions to be aware of the quality of their portfolio as well as identify potentially troubled loans as early as possible. In these turbulent economic conditions, careful monitoring of assets quality, internal controls, and administrative procedures are fundamental to effective credit management.  Quality portfolios can quickly change to criticized in this economic crisis.  Lending officers and relationship managers are often slow to recognize or admit problems on the horizon. Keeping up with increasing troubled debt not only can be an administrative burden but a regulatory capital drain.Even with the most diligent credit monitoring systems in place, problem loans can and will occur in any lending institution’s portfolio.  It is neither efficient nor cost effective for bank officers to try to turn around a problem loan. Valuable time is wasted that could be better utilized underwriting new profitable loans.  Let RMPI Consulting, LLC (“RMPI”) experienced professionals handle and manage your difficult loans.  RMPI understands the sensitive position your Bank has in your community and will make sure the Bank’s image and professionalism is protected during the loan resolution process.  We value your business – we’ve worked for and with banks from $92 Million to $170 Billion.  RMPI is here to help you succeed whether you need: loan workouts, turn-around management, TDR, or OREO management services, or advice on sale of distressed loans. RMPI’s philosophy is to maximize the return to the bank with an eye on short and long term capital burdens.

As the region’s largest and most comprehensive consulting practice dedicated to community banks, we’ve been able to help organizations like yours address credit risk management issues.  All our engagements have always saved our clients more money than the expense we’ve charged.  We allow your lending and relationship management team to focus on their primary mission of developing new business and fostering profitable existing relationships. We provide you with a professional loan workout capability as you need it. We provide you with a plan to maximize recovery and minimize collection expense while continuously assessing the impact on capital.


How Can RMPI Help?
Our experienced team of financial services industry professionals can assess your existing portfolio management program and make recommendations that will help you implement an effective credit solution including:

Loan Workouts:

  • Determine and evaluate the causes of the problem loans
  • Develop cost-effective solutions and implement a workout program on an outsource basis or
  • Establish, implement, or enhance existing work out policies and procedures with internal lending department
  • Manage the daily issues associated with the problem loans or sit in on weekly/bi-weekly criticized asset committee meetings
  • Establish proper reserves and apply FASB 114 analysis
  • Identify proper accrual treatment

Trouble Debt Restructures:

  • Re-Examine existing loan structure
  • Develop alternative modification to maximize performing percentage of loan
  • Implement internal Bank management of TDR and or work with borrower to legally restructure loan
  • Accounting treatment of non accrual portion and monitoring of loan.

OREO Management Services:

  • Construction over-site
  • Marketing over-site
  • Property Management

Note Sales:

  • Structure loan to maximize market value
  • Organize Investor package: loan credit write up, discounted cash-flow analysis, information database
  • Access to large institution investors as well as strategic targeting to individuals or market focus


For more information please contact David Brown, Partner, at Dbrown@RMPIConsulting.com or call 617-973-5742