At the urging of examiners, First South Bank began exploring options for a portfolio stress testing and concentration analysis system. For the tool to provide meaningful results, it needed real-time information about the financial performance of the bank's borrowers. As a result, it was critical that the system the bank chose integrated with their financial data for a more thorough stress testing process that required less manual work for the team at First South Bank.
After a thorough evaluation and due diligence review, First South Bank purchased Abrigo’s Stress Testing and Abrigo’s Credit Analysis to meet its needs in these areas. The bank originally purchased Abrigo Credit Analysis because of its integration with Abrigo Stress Testing as a mechanism to feed the financial data into Abrigo Stress Testing. However, Frank Callison, EVP and Chief Credit Officer, notes, “Abrigo’s Credit Analysis is a much more powerful solution than we originally anticipated. It has gone way beyond our expectations.” The program’s breakdown of debt service coverage ratio by borrower and guarantor helps the bank isolate various silos of cash flow for its regulators and then also show the global debt service coverage ratio for a more complete view and understanding of the loan. The spreads, projection tool, and key metrics available in the output of Abrigo’s Credit Analysis have helped the bank streamline its credit analysis process.