Credit Risk Management Analytics LLC restructures to focus on Credit Software and Analytics, changes name to CRMa, LLC
(Raleigh, NC – 26 August) – CRMa, LLC (CRMa), a financial services software and analytics company that provides underwriting, loan review, due diligence, ALLL/CECL and ERM solutions to Community Banks, announced today the release of its enhanced Credit Concentration Analytics solution.
Community Banks are contending with the increasing risk profile of and regulatory scrutiny around commercial real estate (CRE) concentrations. Indeed, the regulatory community had telegraphed in December 2015 their intentions of focusing bank examinations on commercial real estate concentrations, and just last month the OCC raised its regulatory stance on CRE lending from "monitoring status" to "an area of additional emphasis". To explain their renewed attention, they cited intense growth, competitive pressures and an easing in underwriting standards eerily similar to the lead-up to the Great Recession—during which many community bank failures were driven by concentrations in Construction & Development (C&D) and CRE loans.
CRMa Chief Analytics Officer Jeff Berkson noted that "many of our Community Bank clients are experiencing this regulatory scrutiny first-hand, and even banks well under the regulatory concentration guidelines are struggling with this challenge. We’ve developed a cost effective and miniaturized data warehouse that brings together concentration levels relative to risk based capital, growth rates, current allowance, stress tests and underwriting factors, and results can be run against any portfolio segmentation including the regulatory 'big three' of product, industry and geography. Our interactive Credit Concentration Analytics solution can be deployed via web-based dashboards or directly within Excel where many bank CFOs, CROs, CCOs and relationship managers are already comfortable."
Ion Mixon, EVP at The First, A National Banking Association, in Mississippi, has used the new solution: "CRMa’s Concentration Analysis product has allowed us to take our Concentration Management process to a whole new level. This product allows us to look at our concentrations on a granular level and the portfolio at a wide level, and it has helped us to exponentially increase our knowledge of the concentrations within our loan portfolio. It will help us 'write our story' for bank regulators and for investors who have questions about concentrations and how they impact our bank’s overall credit risk."
You can find out more at: https://www.crma.com/concentration_analysis.html.
About CRMa, LLC
CRMa, LLC (CRMa) was formed in 1989 to advise community financial institutions on loan risk management. Today, CRMa helps community and regional financial institutions, nationwide, achieve more positive bottom-line results by delivering best-in-market loan reviews, portfolio due diligence, quantitative analyses, stress testing, compliance and risk training, underwriting software, and enterprise risk management solutions. We are based in Raleigh, NC and Austin, TX and we have grown a robust, in-house staff of senior credit, analytics, risk management and IT experts.
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