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The Relationship Pricing Tab

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In PrecisionLender, a Relationship contains the full picture of a customer relationship for the purposes of pricing and profitability management. Within each relationship page, there is a Pricing Tab and an Associations tab. The Pricing Tab contains the Relationship Dashboard that shows the Strategic Value of the currently active loans and deposit accounts and the full Opportunity pricing history for this Relationship. 

 

Portfolio/Relationship Impact

relationship impact charts

Strategic Value

Funds Transfer Value (FTP)

  • The value as of the date the loans were last repriced; for fixed rate loans, this will be the when the loan originated, and for floating or adjustable rate loans, it will be when the loan last adjusted.

 

What Each Category Shows

Loan Balance

  • Total balance of all loans in this Relationship.

Commitment

  • Maximum retained amount that could be drawn over the lifetime of the accounts.
  • The outstanding balance of a term loan, or the credit limit of a line of credit.

Net Commitment 

  • The difference between the amount of the new commitment and the existing commitment the borrower intends to pay off.

Net Funding

  • The difference between the amount of a new loan and the payoff or renewal balance.

Deposits

  • Total balance of all deposits in this Relationship.

Other Fees

  • Total balance of all fees or treasury services in this Relationship.

ROE

  • Weighted Return on Equity of all accounts in that category.
  • Net income / Average Equity  
    • Where Average Equity is the amount of risk-based capital allocated to the loan.

ROA

  • Weighted Return on Assets for all accounts in that category.
  • Net income / Average Assets (aka average balance or average outstanding).
    • Where Average Assets is the estimated annualized loan balance based on amortization and utilization (if applicable) over the Expected Life of the loan.

Net Income

    • Weighted Annualized Net Income for all accounts in that category.

If We Lose

  • Remaining Accounts if:
    • All opportunities are lost.
    • All At Risk accounts are lost.

At Risk

  • All accounts marked as At Risk.

Current

  • All currently active accounts.

Payoff/Renewal

  • All Accounts marked as Payoff or Renewal.

New

  • All open opportunities for this Relationship.

If We Win

  • All Open Opportunities
  • Plus all Current Accounts
  • Minus all accounts marked as Payoff or Renewal

 

Accounts 

Below the Relationship Dashboard, you will see the details for the Opportunity Pricing History - Open and Closed Opportunities, the details for each Active Loan Account and Active Deposit Account, showing current balances, current rates, Strategic Value, and Funds Transfer Value.

 

Opportunities

Here you will have the ability to:

  • Open a new opportunity that will be automatically associated with this Relationship.
  • Add or remove this Relationship from one of the listed opportunities.
  • View all past and present opportunities associated with this Relationship

list of open and closed opportunites for this relationship

 

Active Core Relationships

  • Shows the relationships from your core system that are included in this Relationship in PrecisionLender.
  • Each core relationship has a number on the far left that is used to identify which relationship each active account is related to.

list of active core relationships

 

Active Loan Accounts

  • List all active accounts that are associated with this Relationship.
  • The chevron icon in the "Product" field indicates that this field contains a popup with more information. Clicking this field will show you import data, general loan information, and financial statements for FTP Value and Strategic Value.

list of active core accounts

 

Payoff
  • Indicates if this account has been marked as being paid off by any of the open opportunities.
    • An empty box means the account  has not been marked to payoff.
    • p means the account  has been marked to payoff.
  • Can only be changed in the Payoff/Renewal field of the opportunity
At Risk
  • Indicates if this account has been marked as At Risk by any of the open opportunities.
    • An empty box means the account  has not been marked as At Risk.
    • r means the account  has been marked As At Risk.
  • Can only be changed on the Relationship Impact Tab of the opportunity.
Core Account Identifier
  • Indicates what Core Relationship this account is associated with.
Product
  • Product type of this account as imported from the core system.
  • Determines many of the assumptions that will be used to calculate the value of this account.
  • Opens a popup where you can:
    • Set an expected payoff date for this account (Loan Accounts Only).
    • See the account data that was imported from the core system.
    • See the inputs that are used to calculate the Strategic and FTP Value of this account.
Comments
  • Displays any comments that are included as part of the import from the core system.
Risk Rating
  • Risk Rating associated with this account.
  • This value is imported from the core system.
Amount/Commitment
  • Original commitment of this account.
  • This value is imported from the core system.
Current Balance
  • Balance of this account at the time the data was last pulled from the core system.
Average Balance
  • If the import from the core system includes an average balance, it will be displayed here.
  • If not, PrecisionLender will calculate a trailing 12 month average of the balance
    • If there are less that 12 months of data, PrecisionLender displays a time weighted average.
Rate
  • Current interest rate for this account.
  • This value is imported from the core system.
Average Pretax Income (Other Accounts Only)
Strategic Value
  • Calculated using the current funding curve.
    • Net Income
    • ROE
FTP Value
  • Calculated using the funding curve from the closing date.
    • Net Income
    • ROE
 - Additional Information
  • Opens a popup showing:
    • Any collateral associated with this account
    • Any associations this account has to other Relationships such as:
      • Guarantors for loan accounts
      • Signers and Co-Signers for deposit accounts

 

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