- Before
- Assembles four options from four spreadsheets, each on different value and timing assumptions, the week before committee.
- Now
- Opens each troubled loan to four options on one set of assumptions, with the break-evens solved, and edits a cited memo.
One troubled loan, from the file to the committee’s vote
Halvorsen Crossing owes $18.4 million. The anchor tenant left, the loan matured on 31 August, and the short-term accommodation ends on 30 October. The loan committee meets Thursday. Here is the week, screen by screen, in the working solution.
- 01Monday
Twelve troubled loans, one discipline
Dana Okafor · Special assets officerDana opens her workouts: 12 troubled loans, every one compared on four options, one set of assumptions and the 9.0% policy rate. Each row shows what went wrong, the rating, when the accommodation ends, the best option today and how far ahead it is. Halvorsen Crossing is at the top — Substandard, accommodation to 30 Oct, committee Thursday 15 Oct.
“Re-valued when a new appraisal, rent roll, statement or bid arrives.”
- 02The cash flow
What the building earns now
Financials readerTellmark Insurance Services left 41,200 sq ft on 31 March. Occupancy fell from 91% to 62%, and net operating income for the twelve months to September is $1.18M — down from $2.31M in 2024. Debt service coverage is 0.71× as written; the panel beside it shows coverage under each option against the 1.20× policy minimum for a renewal.
Never adjusts a figure without the line it came from.
- 03The collateral
Value and rates, each with its source
Value and rate updaterThe Whitford appraisal of 9 September puts the property at $13.2M as-is at an 8.75% cap rate, against $26.5M at origination and a loan balance of $18.4M. Four nearby office sales closed at $88 to $112 a square foot. The value trend (−4% a year), the discount rate, the extension and A note rates all sit on one panel, each linked to its source.
- 04The guarantor
What Erik Halvorsen can really bring
Guarantor and sponsor analystNet worth of $11.60M, but $1.90M liquid against $42.30M of guarantees on six other loans — one, Cobalt Flats, already in special servicing. His $750,000 paydown for a two-year extension is credible; it leaves $1.15M, about seven months of carry. Global cash flow coverage across his properties is 0.94×.
Never treats contingent liabilities as zero.
- 05One click
“Re-value on today’s numbers”
Dana Okafor · Special assets officerDana presses one button. Six agents work in a rail beside the comparison, step by step: the financials, the value and rates, the guarantor, the options, the classification and accounting effect, and the memo — reading the file’s 47 documents, each step with its source.
- 06Seconds later
Four ways out, on one set of numbers
Option modelerExtend, restructure, sell the note and foreclose line up in four columns with the same rows: net present recovery, collateral value used, borrower cash flow, time to recovery, chance it fails, charge-off now and classification after. Selling the note to Gravenstein Capital recovers $12.29M — 66.8% of the balance — with cash in 45 days. The A/B restructure recovers $11.70M with a 28% chance the A note re-defaults; the extension $11.38M with an 85% chance it fails.
“Sell the note recovers $12.29M — $0.58M more than restructure, on the same 9.0% rate and $13.20M value.”
- 07Try it
What would change the answer
Dana Okafor · Special assets officerUnder the columns, the break-even for every rival is solved on the same model: foreclosure wins only if the value is above $14.73M, 12% over the appraisal; the restructure only if the discount rate falls below 7.6%; the extension only if the chance of a full refinance in 24 months is above 27%, against 15% today. Dana clicks “Try it” on foreclosure — the value moves up, all four columns re-value, and foreclosure takes the lead. “Back to the file” restores the appraisal and policy.
- 08Drafted
A term sheet from the best bid
Memo and term sheet writerThree bids from the Tamsin Loan Advisors process sit side by side — Gravenstein Capital at $12,650,000 closing in 45 days, Ashbury Credit Partners at $12,180,000, Pell Street Opportunity Fund at $11,720,000. The non-binding loan sale term sheet sets out price, deposit, diligence, closing, recourse and the accounting: a $5,936,500 charge-off and a $1,036,500 provision over the $4.9M allowance.
Drafted for Dana to edit — nothing goes to a buyer or the borrower from here.
- 09Before committee
The committee memo, every figure cited
Dana Okafor · Special assets officerThe memo is drafted in the bank’s six sections — what happened, collateral and guarantor, options on one set of assumptions, recommendation, what would change the answer, accounting and classification — with seven margin notes back to the T-12, the appraisal, the guarantor’s statement, credit policy §14.3 and the bid summary. A checklist beside it shows what the examiners will look for, from the 2023 interagency policy statement.
- 10Thursday, 08:52
The committee decides, on the record
Ruth Castellano · Chief credit officerRuth chairs the loan committee. The note sale is approved 4–0. She signs the $5,936,500 charge-off and the rating to Loss on the charged-off part; next, the purchase agreement goes to counsel, with closing by 30 November. The case history keeps every step — who changed an assumption, which agent valued what, the memo sent with the assumptions locked as version 3.