Western Independent Banker - January/February 2008 - (Page 24) We are RWG. RWG is a consulting firm that provides strategic and training support to financial institutions. Our backgrounds range from bank presidents to bank examiners and we bring a wealth of knowledge and expertise in the following areas: • Loan Management Services • Regulatory Directives / Enforcement Actions • Management and Efficiency Studies • Ongoing Training and Education • Expert Witness and Legal Services Please visit www.reynoldswilliams.com Or call us today at 877-878-8084. “Reynolds Williams provides us with a tremendous level of expertise in credit review and related services. They allow us to leverage our credit review resources effectively and provide us valuable outside perspective on key credit issues.” -ELIZABETH S. KUEHL AVP LOAN REVIEW MANAGER QCR HOLDINGS, INC. CEDAR RAPIDS, IA Inappropriate insider transaction procedures can quickly sour a regulatory relationship. 3. Ensure that the pre-opening pipeline of loans and core deposits is substantial. Regulators will focus keenly on your march to profitability, and of course, the number one issue for a new institution is growth. The pre-opening pipeline of loans and core deposits should be enough to at least reach the break-even point of asset growth. While projected financial statements typically do indicate adequate growth, you are wise to document realistic plans and lists of new business prior to opening your doors. 2. Ensure that the pre-opening pipeline of loans and core deposits is substantial. (This is not a typo. This point is so important, we’ve listed it twice. Please read #3 again!) 1. Be prudent with credit underwriting. Resist the urge to loosen underwriting standards for the sake of growth. As we pointed out in #3 and #2 above, growth is critical for a de novo institution. However, bad loans can wipe away hard earned profits overnight. Len Filppu is executive vice president/director of operations for AuditOne LLC, a San Jose, California-based independent internal audit firm specializing in banks and their service providers. He can be reached at 408-980-8099 or www.audit-one.com. Kevin K. Watson is executive vice president/director of audit services for AuditOne LLC. He can be reached at 562-802-3581 or kevin. watson@audit-one.com. ©2008 Reynolds Williams Group 359799_BK.indd 1 1/9/08 8:40:18 AM 24 Westernpromo3.indd 1 www.wib.org Western Independent Banker 12/17/07 2:00:00 PM http://www.reynoldswilliams.com http://www.audit-one.com http://www.wib.org http://www.wib.org
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