Customer Case Study
Small Market Lender Leverages Big Market Technology
| Company Name: | Security National Bank (SNB) |
| Contact Person: | Keith Knudsen | EVP |
| Market Status: | SNB is an $130 million bank that was formed in 1928 and today serves four communities in Northeast Nebraska SNB has totally overhauled their infrastructure to streamline the way they do business. |
We use a Fast Track Analysis application for our consumer loans. The data entry is very minimal. In addition to the general information, the data needed to complete an application is borrower income, housing payments, other payments, additional payments, loan amount requested, and collateral value. By entering these figures, WebEquity® figures debt ratios and LTV's needed for consideration of the request.
In the past we would we use an excel spreadsheet to calculate debt ratio, use a different Web site to pull the credit report, and prepare a loan information worksheet to provide to loan clerks for loan processing. Now, we are able to consolidate all of these efforts into the WebEquity system and the figures are saved without having to touch a paper file.
The ratio analysis has proven to be very helpful in our commercial loan analysis. Liquidity Ratios, Profitability Ratios, Coverage Ratios, and Efficiency Ratios. We can also look at industry comparisons and look at our borrowers' financials in comparison to others in the industry. We can look at term debt coverage trends for up to six years. In addition, each balance sheet is customizable to the borrower and certain line items can be added or removed from the standard format.
After the first year's balance sheet is prepared, data entry is very minimal. Customer Input Worksheets are sent out to Ag borrowers approximately 60 days before their note comes due. After making any necessary changes to last year's schedule, they send the input worksheets back to us. We then change the numbers from last year's statement and update our analysis/credit presentation. The data entry and updated analysis, lien searches, credit checks, etc. can be done in less than 30 minutes.
If all of the pertinent information has been gathered, WebEquity has the ability to generate any ratios or trends that may be useful, i.e., Term Debt Coverage, Collateral Coverage, Equity/Asset calculations. We've also customized numerous scoring and rating models to evaluate the loan request.
We have customized numerous credit action models to fit the various types of loan applications that we have. Each credit action has a different Application, Credit Presentation, Loan Documentation Checklist, and Scoring and Rating Model to match the request. The credit action models are according to OUR loan policy to reflect the different requirements of each loan type.
The ability to obtain and save credit reports within the customer's file on WebEquity has put us one step closer to a paperless file. The report is prepared in an easy-to-read format with the ability to view a past report with the click of a button. It allows us to look at any changes in consumer debt from previous years.
As we have begun to image our loan documents, we are steadily progressing to having the ability to maintain a paperless file. Currently only those documents generated from WebEquity that needs signatures are printed. All notes, security agreements, etc. are scanned into our host system.
WebEquity allows us to provide some useful data to our customers in term of trends and key ratios pertaining to their business. It allows for quicker turnaround time and provides for consistencies in evaluating loan requests from one SNB location to the next.
