T Gschwender Logo


Roger Graham, EVP/Quality Assurance

We have been doing loan reviews for a very long time, over a quarter of a century! When you do things for a long time, you tend to get good at it, provided you listen to your clients and customers. So what really makes us better than our competitors?

TGA uses a three tiered “risk-based” approach when completing a loan review. We start by looking at your overall credit risk profile by completing a Credit Risk Assessment. This helps us determine your current level of credit risk, the direction of that risk, and the quality of your credit risk management/monitoring systems. Once completed, it helps us determine how much of the portfolio (the penetration level) to review.

Then we take each and every one of your loans within your portfolio and place them into high, moderate, and low risk buckets. This is done based on each loan’s characteristics. Not a simple task but technology has helped speed up this process. We then cover 100% of your high risk loans, a minimum of 50% of your moderate risk loans and 10% of your low risk loans in our sample.

Lastly, how we assign a risk rating is also risk based. We look at the 5 C’s of lending of each loan plus Credit Administration (loan structure, loan monitoring, quality of financial statements, etc…). Each of these variables are risk weighted based on their importance and are assigned a variable rating. Then our proprietary risk rating model takes over and helps us assign the appropriate regulatory risk rating to the loan.

Our process is transparent and ensures consistency in our risk ratings, which we have perfected over the last 25 plus years. In addition, our loan review software is available for you to use to complete your annual reviews where you must validate the risk rating.

I suppose if you do things long enough, you are going to get better at it. Unfortunately, this philosophy does not hold true for my golf game.

Contact us at info@tgschwender-assoc.com for more information.


ABOUT US: T. Gschwender & Associates, Inc. is a diversified consulting company that has been providing services to financial institutions since 1984. Our clients include small community banks and credit unions with less than $100 million in assets to much larger regional institutions with over $5 billion in assets. We like to describe ourselves as a highly sophisticated "Credit Department," able to handle all functions from initial borrower due diligence to collateral liquidation, and everything in between. Our goal is to provide these services in a timely and cost effective manner, allowing our clients to tap into resources they would not otherwise be able to employ internally.