Credit Risk Analysis

Allowance Model

Bend Don’t Break

The economic impact of the current healthcare driven crisis is obvious when one looks at the most recent economic data.  What isn’t obvious, however, is how the current crisis will impact loan losses for lenders, including CDFIs and community banks.  We …


COVID-19 and The New Normal

The last 7 days have been quite unlike anything we’ve ever faced during our years in banking.  We understood the why and the how of the Great Recession twelve years ago.  The contagion then was banks and well, we are bankers.  But …

5 C's of credit

When Does Character Count?

When it comes to the 5 C’s of credit, character always counts. What should a lender do when a borrower exhibits questionable character? Is there wiggle room to ignore certain character flaws and not others? …