Banker’s Toolbox , a provider of commercial real estate portfolio stress testing and money laundering and fraud detection, announced that Memphis, Tenn.-based Paragon National Bank ($300 million in assets) successfully implemented its Commercial Real Estate Loan Stress Test (Crest™) software to proactively stress test and monitor its Commercial Real Estate (CRE) portfolio.
Paragon National Bank selected Crest because the bank’s rapid growth necessitated a more structured and automated process of analyzing its CRE portfolio. The system enables the bank to segment its commercial real estate holdings and apply stress factors to see how hypothetical changes could impact the health of the portfolio. Additionally, Crest’s speedy implementation enabled the bank to meet an internal deadline for having a new program in place without straining the budget.
“It is vital in this market to be able to quickly implement programs that will help us make our bank stronger,” said Andy Taylor, senior credit officer at Paragon National Bank. “The time it took for us to go from a demo to full speed – including a fantastic training – exceeded our highest expectations.”
Paragon National Bank also cited the ease of using Crest’s reporting features as a key in the decision. The program’s analysis makes it simple for the bank to outline and report on the health of its loan concentration areas. Crest is also designed to provide more accurate stress test results with less data requirements, overcoming the ongoing data-gathering challenge faced by all banks.
“Community banks are very aware of the impact commercial real estate and the current market pressures can have on a bank’s health,” said Daniel Cho, chief executive officer at Banker’s Toolbox. “Crest enables banks like Paragon National Bank to quickly evaluate and manage the potential risk in their CRE loan portfolio, which should help with regulatory exams and mitigate loan concentration risk in the future.”
About Paragon National Bank
Memphis, Tenn.-based Paragon National Bank, founded in 2005, is a locally owned community bank that focuses on small business, private banking and residential mortgage clients. At $300 million in assets, the bank prides itself on cutting edge technology and products, an experienced team, and a high level of customer service. For more information, visit the bank’s Web site at www.bankparagon.com .
About Banker’s Toolbox, Inc.
North Hollywood, Calif.-based Banker’s Toolbox, Inc., helps banks manage risk and streamline compliance examinations. The company’s product suite consists of affordable solutions for money laundering detection and reporting, commercial real estate loan portfolio risk assessment, risk management through fraud and kite prevention and secure wire processing automation. The Banker’s Toolbox team is a unique combination of seasoned bankers and information technology consultants who specialize in designing, developing and implementing risk management solutions nationwide while providing unparalleled customer service to regional and community banks. For more information, visit the company’s Web site at www.bankerstoolbox.com .