Banker's Toolbox Launches Next Generation in CRE Loan Stress Testing with Crest^TM 2.0

NORTH HOLLYWOOD, CALIF., Oct. 14, 2009 – Banker’s Toolbox, a provider of commercial real estate loan (CRE) stress testing software and tools to comply with Bank Secrecy Act/Anti Money Laundering laws, has released the newest edition of Crest™, a tool that enables banks to stress test CRE loan portfolios to determine risk exposure, reveal strategies for creating a healthier loan portfolio, and better prepare for Safety and Soundness exams.

The new edition of Crest is streamlined to provide more accurate stress test results with less data requirements, overcoming the ongoing data-gathering challenge faced by all banks. This affordable program uses a proprietary model that allows for unified stress testing of all types of CRE loans.

“Examiners expect bankers to prove the strength of their CRE loan portfolio by stress testing based on current and potential future market conditions,” said Daniel Cho, chief executive officer, Banker’s Toolbox. “Crest is the only CRE loan stress testing tool that gives banks automated framework that can be used to effectively eliminate burdensome data management requirements and produce a baseline stress test within a single workday.”

The system enables banks to segment their CRE loan portfolio based on an unlimited variety of factors, including geography, property type or industry. Its universal stress factors empower bankers to run comprehensive, multi-variable scenarios that incorporate hypothetical changes to income, property valuation, and interest rate, without sacrificing flexibility and control for unique loan segments. The program’s straightforward and realistic analysis makes it simple for banks to outline hazardous CRE loan concentration areas within the lending base and forecast complications with risky borrowers.

“As commercial holdings face higher rates of delinquency and depressed property values become more prevalent, it is important to accurately evaluate our holdings so we can make more informed lending decisions and manage risk exposure,” said Cliff Nielsen, vice president and chief technology officer at Pacific Commerce Bank. “Crest gives us the ability to run multiple stress tests that analyze both collateral types and specific geographic areas, ultimately defining potentially problematic loan niches.”

In addition to state-of-the-art technology, the Crest solution includes expert assistance from Banker’s Toolbox risk management consultants who lend guidance through data cleanup and initial stress testing. Even after the system is up and running, quarterly or annual management reports can be outsourced to Banker’s Toolbox or a third-party consultant/auditor.

“When it comes to making decisions on CRE loan portfolios, more realistic, accurate information leads to stronger decisions for the bank,” added Cho. “Crest provides this data and analysis in an affordable, easy-to-use interface that is infinitely more manageable and cost-effective than the comparable tasks of maintaining data integrity in a spreadsheet or repeatedly hiring outside consultants.”

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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, risk management through fraud and kite prevention, secure wire processing automation, and commercial real estate loan portfolio risk assessment. 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.