A wealth of experience from competent professionals with specialized expertise in
a variety of areas critical to dealing with the challenges facing
bankers in today’s financial services environment
Our philosophy of audit and consulting is to provide exceptional service at a low cost
through an efficient organizational structure. Our non-hierarchical structure means
you receive managing partner level experience on-site throughout the engagement.
DLS Consulting, PLLC offers independent reviews of asset quality, loan underwriting and credit administration. The objective of the review is to determine the credit quality of the portfolio, determine acceptability of underwriting standards and policies, determine that policies are being followed, ensure that approvals are based on accurate information, and ensure that key documentation is adequate.
Reported to the Board of Directors (or audit committee / directors’ loan committee) and financial institution management:
The scope typically includes reviewing all large lending relationships focusing on commercial and commercial real estate loans, reviewing past due and non-performing loans, reviewing existing policies and policy changes, discussing cash flow analysis, loan ratings and credit exceptions with loan officers and conducting an exit review with senior management. The audit will include reviewing loan files for current and complete financial information, insurance, note and collateral documentation and assessing the level of repayment risk within the credit. Results of the loan review will be reported to the Board of Directors or Audit Committee in a report addressing asset quality, problem loan reporting, and credit administration.
DLS consulting provides stress testing of loans portfolios, typically in conjunction with a loan review. Stress testing provides management with an estimate of loss exposure under stressed market conditions including a significant decline in revenue, cash flow and collateral values. The stress testing is designed to provide additional information to management in their efforts to establish and support reasonable risk appetite and tolerances, set concentration limits, adjust strategies, and appropriately plan for and maintain adequate capital levels. The results of stress testing can also assist management in mitigating identified risks and vulnerabilities through such actions as increased portfolio monitoring, adjusted underwriting standards, and establishing appropriate action plans that address risks when the results are inconsistent with risk tolerance levels and the financial institution’s overall strategic and capital plans.
Our stress testing includes bottom-up transaction testing of commercial, and commercial real estate portfolios. Individual loans are stress tested for risk of default and potential loss exposure. The results are accumulated and extrapolated to the entire portfolio to provide the institution with an estimate of loss exposure under stressed conditions and its impact on earning and capital. Stress testing also provides management with a list of how individual loans faired under stressed conditions as well as an overall percentage of potential default and loss with a comparison to peer averages, giving you a snapshot of how your portfolio stacks up against your peers.
A review of internal controls is designed to assess the effectiveness of internal control over financial reporting and bank operations. The objective of the review is to evaluate the accuracy of financial information, assess the adequacy of internal control and evaluate operational efficiency. The review includes obtaining an understanding of the internal control, testing and evaluating the design and operating effectiveness of the internal control, verifying balances on the general ledger and subsidiary records, testing transactions and reviewing loan files for current and complete financial information, insurance, note and collateral documentation.
Our staff has extensive and current training and experience in regulatory compliance. A compliance audit or review assesses the effectiveness of the institution’s internal polices, procedures and audit functions and can be tailored to your specific needs. We offer a full range of compliance audit and support. The specific regulatory compliance areas tested can be determined by our staff or your management based on an assessment of risks and needs to focus audit resources toward higher risk areas.
Some of the more popular compliance reviews include:
Our staff has been involved with due diligence services for mergers and acquisitions for more than 20 years. Over the years, we have worked with clients of all sizes and established an excellent track record in asset valuation, loss exposure prediction and management assessment. Our due diligence services are timely, discreet and cost effective in providing clients with a conservative and realistic assessment of target institutions and loan portfolios. Contact us for a confidential discussion and advice regarding due diligence services.
An audit assesses an institution’s compliance with rules and regulations governing the ACH network. The audit procedures will cover the NACHA audit requirements and include a review of the bank’s policies and procedures, sample testing of these procedures, a review of schedules, forms and reports, and testing transactions for accuracy and compliance. Areas Covered in the Review of ACH Rule Compliance Audit include: