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Analyze the quality of your portfolios
1. Generate Model
Let’s use Sample Bank as an example to run the Asset Quality Model
Once you click on Generate Dashboards, an authoring message will pop-up. This message shares our most recent troubleshooting tips. Once you have read through the messages, click “Yes”
After you hit Yes, the below message will pop-up. This lets you know that if another user requests the same model, they would be joining as an active user in the model. Click “OK” to continue.
2. Tab Generation
The Asset Quality Model will appear on your browser, and you will be taken directly into the model.
3. Landing Page
This tab shows the name of the model and has a forward icon to move to the next tab. You can also move through the tabs by clicking on the tabs at the bottom of the Dashboard.
4. Navigation Pane
This tab shows you the list of navigation icons in the Dashboard and where they will take you.
5. Home
This tab shows you the list of sections in the Dashboard and their summary description. You will be able to move through the contents of the Model by clicking on the forward arrows next to each Linked Guide.
6. Risk Ratio Analysis
Examine your company's financial health by comparing key metrics from your financial statements.
7. Thresholds
Threshold inputs allow you to choose between FinPro Industry Thresholds and your Bank’s specific Thresholds. The user has the ability to switch between FinPro industry thresholds or set Bank Specific Thresholds for all risk ratios and concentrations by clicking “Threshold Switch” or “FinPro Thresholds”
8. Comparison Analysis
This shows the loan concentrations and compositions compared to the two comparable group medians and overlaid against the chosen thresholds: high risk (red), moderate risk (yellow), and low risk (green).
9. Bank Historical Trend
This tab shows the Bank’s last eight quarter loan concentration and composition trend.
10. Comp 1- Historical Trend
This shows Comparable Group 1’s last eight quarter loan concentration and composition trend.
11. Comp 2- Historical Trend
This tab shows Comparable Group 2’s last eight quarter loan concentration and composition trend.
12. Industry Qualitative Factors
In this tab, for each loan category, the user has the ability to include bank specific qualitative factor allocations for each industry agnostic qualitative factor, as well as, up to 5 bank specific qualitative factors. The user also has the ability to write supporting commentary as to why ACL allocations were needed.
13. Qualitative Factor Results
This tab shows you the Qualitative Factor Results by loan category. Use the drop down below to select the Loan Concentration.
14. Historical Loan Loss
This tab allows you to analyze your Bank’s historical loan losses. Use the drop down below to select the Loss Rate Type.
15. Weighted Average Remaining Maturity (WARM) Computation ($)
In this tab, utilizing the Bank’s annual loss rate along with the qualitative factor adjustments, you can calculate the Bank’s weighted average remaining maturity (WARM) to determine current and proposed ACL.
