Credit Analysis

AgFirst offers SunGard’s Optimist Analysis Tool Suite (“Optimist”) to support Associations’ credit analysis and lending processes. This industry leading software provides comprehensive solutions for lending decisions and ongoing credit compliance and servicing. This solution allows each Association to establish uniform processes and conduct consistent analysis of credit requests. Optimist provides automated workflows that streamline processes and reduce errors. Furthermore, its database provides the ability to perform comprehensive portfolio management.

AgFirst configured Optimist to make timely credit decisions and address challenges unique to agricultural lending. The system provides a broad range of features and allows for extensive financial analysis, macroeconomic forecasting models, risk ratings, loss given default models and portfolio management.

Risk assessment is dependent on standardized and accurate financial and non-financial information analysis. This tool provides Associations a single solution to collect, analyze and report on customer information with uniform procedures. This helps reduce risks of errors with standard and thoroughly tested custom models and templates. Optimist enables Associations to have a complete view of clients’ financial profiles across a wide range of assets, including company financials, real estate holdings, personal financials and other pertinent data. The robust database prevents data loss and redundancy, and it reduces efforts required for management, audit and regulatory reporting.

In addition to financial analysis, key performance indicators and diagnostic tools, Optimist provides communications tools and reports that help promote better dialogue with borrowers. This enables lenders to conduct an informed discussion regarding their client’s credit profile and helps build, manage and sustain profitable lending relationships.

Optimist’s analysis platform provides lenders the flexibility to create, manage and edit loan approval documents, and offers options to create and print custom reports. Standard and custom models provide support to commercial and consumer lending with the capability to capture and analyze a borrower’s lending request in detail or summary form. Optimist has a full credit analysis feature set, and functionality includes but is not limited to:

  • Standard templates for commercial and consumer loans, including templates for Agricultural Cash and Personal Statements, Agricultural Accrual Statements, Commercial and Industrial Statements and Credit Scored Loans.
  • Analysis of company and personal financials in the same application.
  • The capture of personal financials of multiple guarantors.
  • Creation of a cash flow statement from tax forms (1040) and other personal financials.
  • Cash to accrual conversions.
  • Multiple consolidations.
  • Debt schedule spreading.
  • Net worth reconciliation.
  • Association and member adjusted periods.
  • A flexible projection tool (including consolidations).
  • Earned livestock inventory changes.
  • Scenario and customer stress testing.
  • Analysis charts and graphs.
  • Cross template consolidations.
  • Detailed financial analysis using sub-charts.
  • Key performance indicators and ratios.
  • Industry benchmarking.
  • The ability to stress test projections to determine breakeven analysis and “what if” analysis impacts on projected cash flows.
  • Formal credit reports detailing the borrower's business performance and credit risk, delivering a completed credit risk management and measurement solution.
  • Integration of personal financials with credit write-ups.
  • Accurate calculation of exposure and risk with standardized and custom Risk Rating/Probability of Default (PD) and Loss Given Default Models, including:
    • The ability to create industry-specific risk models.
    • Standardized risk reporting.
    • The ability to create quantitative and qualitative risk ratings.
    • The ability to capture and track all risk rating overrides.
    • The ability to support uniform risk rating methodology throughout the Association.
  • Graphic representation of a customer's trend for Risk Rating/Probability of Default.

Optimist provides greater consistency in forms and templates and maintains all relevant financial and non-financial obligor information within one central database. This provides lenders access to information by customer or on a deal-by-deal basis. Furthermore, Optimist’s database provides the information and reporting tools Associations need to manage their portfolios and monitor credit risk.

AgFirst has integrated Optimist with our current loan origination system, Credit Delivery. As we enhance our loan origination solutions, Optimist will be more highly integrated within our suite of tools and processes, creating greater automation and efficiency.