Stress Testing FIT™
Loan Portfolio Stress Testing | Capital Stress Testing

How has the current market and pandemic impacted your capital?
PCBB’s Stress Testing FIT and expert advisors can quickly stress test your loan portfolio under various economic conditions so you can understand key vulnerabilities and determine the resulting impact on your earnings and capital.

Key Benefits:

  • Top-down and Bottom-up approaches
  • Quickly stress test your loan portfolio
  • Multiple scenarios and stress factors
  • Easily meet regulatory compliance
  • Pre-exam assistance
Article: Top Six Stress Testing Tips During COVID-19

The process of stress testing portfolios can aid in strategic decision making, credit policy development, strengthen the quality of concentration risk management, support reserve methodology, and determine regulatory capital at risk.

OCC Supervisory Guidance, Community Bank Stress Testing

Two Approaches to Stressing Your Loan Portfolio

Deluxe

Approach
Top-down — Portfolio Level approach
Up to 4 scenarios based upon different forecasts
User configurable forecast (GDP & Unemployment)
 
Loan Data
Industry segmentation
National and regional industry results
 
 
Reporting and Analysis
Multiple regression-based analysis
Transparent inputs and calculations
Robust reporting
Comprehensive graphics

Pro

Approach
Top-down & Bottom-up approach
Multiple Scenarios (pre-stress, baseline and adverse)
Stress factors: DCR/DTI, LTV, NOI, Debt Service, Cap rates
 
Loan Data
Industry segmentation + custom groups
National and regional industry results
Your institution’s note level data
 
Reporting and Analysis
View concentrations: branch, officer, MSA, NAICS, etc.
Transparent inputs and calculations
Robust reporting
Comprehensive graphics
Advisory assistance included

Flexible Capabilities

Stress Testing FIT calculates your losses under different economic environments with multiple configuration options and in the context of current reserves and forward earnings. FIT Advisors provide you with insight along the way.

  • Flexibly review your losses by asset class either from top-down or bottom-up
  • Back-testing and projections included at no additional cost
  • Pro-forma impact on earnings and capital adequacy