First Federal Savings Bank of Twin Falls Implements CRE Loan Stress Testing Software to Comply with Concentration Guidance

Banker’s Toolbox’s Crest™ helps bank proactively manage commercial real estate loan portfolio

AUSTIN, Texas--()--In response to increased attention being paid to commercial real estate (CRE) regulatory guidance issued in December 2006, First Federal Savings Bank of Twin Falls (Idaho) has implemented Crest™, a commercial real estate loan stress testing solution from Banker’s Toolbox. The software helps the bank to proactively identify potential areas of weakness within its CRE loan portfolio in relation to changing economic situations.

Crest, which is compatible with all core processors, allows First Federal Savings Bank the ability to stress test their CRE portfolio to determine risk exposure, reveal strategies for creating a healthier loan portfolio, and manage risky areas. First Federal Savings Bank selected Crest because the software was flexible enough to incorporate the bank’s custom purpose codes in their HORIZONTM core processor from FIS. The bank also cited the software’s ability to test portfolios on future changes–vacancy rate, expenses, interest rates and potential gross income–and return reports on loan-to-value ratios (LTV), debt coverage ratios (DSCR), and net collateral shortfall.

“Crest gives us a tool to review our portfolio from the top down, flagging loans that may need additional attention, and providing us time to help the borrower,” said Elaine Bowman, assistant to loan administrator for First Federal Savings Bank. “Moving forward, we can set up stress thresholds and proactively take action on loans that may need special work.”

The results empower banks to note hazardous loan concentration areas within the lending base and forecast complications with borrowers. Bowman also praised the simple video-based training and intuitive interface of Crest, making it easy for bank personnel to learn the new software.

“Crest accurately assesses current portfolios and calculates the impact of possible market changes, enabling banks to be proactive in addressing potential problems in their loan portfolio,” said Daniel Cho, chief executive officer of Banker’s Toolbox. “When banks like First Federal Savings Bank have an easy-to-use tool to analyze risk, they receive the information needed to mitigate that risk as soon as possible.”

About First Federal Savings Bank of Twin Falls

Founded in 1915 First Federal Savings Bank of Twin Falls (Idaho) now operates 10 branches and employees more than 195 employees. The bank manages $445 million in assets and is the leading mortgage lender in the Twin Falls Valley. For more information, visit the bank’s website at www.firstfd.com.

About Banker’s Toolbox, Inc.

Austin, Texas-based Banker’s Toolbox, Inc., helps banks manage risk and streamline compliance examinations. The company’s product suite consists of affordable solutions for money laundering detection and reporting, commercial real estate loan portfolio risk assessment, risk management through fraud and kite prevention and secure wire processing automation. The Banker’s Toolbox team is a unique combination of seasoned bankers and information technology consultants who specialize in designing, developing and implementing risk management solutions nationwide while providing unparalleled customer service to regional and community banks. For more information, visit the company’s website at www.bankerstoolbox.com.

Contacts

Banker's Toolbox, Inc.
Saira Ali
Marketing Officer
512-279-5790
saira@bankerstoolbox.com
www.bankerstoolbox.com

Release Summary

Banker’s Toolbox’s Crest™ helps First Federal Savings Bank of Twin Falls proactively manage and stress test their CRE portfolio

Contacts

Banker's Toolbox, Inc.
Saira Ali
Marketing Officer
512-279-5790
saira@bankerstoolbox.com
www.bankerstoolbox.com