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Bank credit advisory services for investment bankers

Diligent works closely with managing directors and analysts of financial institution groups and loan sales advisors evaluating community banks and their loan portfolios. We provide a clear understanding of the credit risk, and estimates of current expected loss in portfolios originated or acquired by community banks.  Diligent helps investment bankers manage client expectation and removes uncertainty by assisting with loss modeling, loan review, asset summary reports, and data tape validation.

Bank credit advisory services for investment bankers

Preliminary Evaluation to Establish Realistic Expectations

Diligent’s preliminary data tape testing and analysis is designed to reveal adverse credit characteristics validating or invalidating Risk Ratings and important management estimates, such as the ALLL. Based on our experience and data from the Bank we are able to develop preliminary estimates of the probability of default, loss given default, and current expected credit loss for the target portfolios.

Augmenting the preliminary evaluation, Diligent performs loan level reviews and analysis to validate assumptions for probability of default and loss given default driving the estimate of current expected credit loss.  This review results in a refined estimate of current expected credit loss and serves as the basis for fair value accounting.

Prevent overpayment and underperformance

Diligent offers a unique point of view on bank and loan portfolio acquisitions, having participated in over 175 whole bank transactions and loan portfolio sales/acquisitions. Our diligence delivers actionable intelligence, with fully documented assessments of both opportunity and risk, to facilitate an informed transaction.

Diligence for investment bankers

  • Sell side M&A
  • Buy side M&A
  • Reverse diligence
  • Loan review
  • Asset summary reports
  • Loan data tape validation
  • Portfolio acquisition modeling
  • Loan sale preparation
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