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Understanding the Amortization Table

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The amortization table provides a monthly breakdown of the principal, income, expenses, and capital for each loan priced in your opportunity based on the regional and product assumptions set by your administrators. You can view the amortization table in Advanced Analytics in the opportunity screen.

 

The Amortization Table

amortizationTable.png

Table Views

Scenario

To view the amortization for loans in a specific scenario, you can select the scenario from the "Scenario" dropdown.

Loan

To view the amortization for a specific loan in a scenario, select the loan from the "Loan" dropdown.

Copy to Clipboard

Selecting "Copy to Clipboard" provides the option to copy the amortization table and paste in Excel for easier viewing and to perform any calculations if desired.

 

Table Columns

Column Name Definition

Month

The month duration point in the overall maturity. Each row of data in the table will correspond to the month indicated.
Contractual Beginning Balance The contractual ending balance from the prior month
Principal Draw The principal amount drawn during the month
Contractual Average Balance

The contractual loan balance at the duration point in the term.

Note: This does not include prepayments.

Contractual Principal Repayment

The principal amount due to be repaid during that month based on the payment type structure, payment frequency, first payment start date, and interest calculation (accrual method) ie Actual/360, etc. selected on the Opportunity Screen. A scheduled repay or decrease in commitment for an LOC will also appear here.
Contractual Ending Balance Contractual Beginning Balance + Principal Draw - Contractual Principal Repayment
Projected Beginning Balance The projected ending balance from the prior month including prepayments if applicable.
Projected Average Balance

The projected loan balance at the duration point in the term including any expected prepayments.

The average of this column is the annualized average balance displayed on the Financial Statement.

Projected Ending Balance Projected Beginning Balance + Principal Draw - Projected Repay
Nominal Loan Rate The Initial Rate charged to the borrower as input in the Opportunity Screen. For Adjustable Rate loans, this will also include the rate resulting from the index and spread at the adjustment period. Rates are based on the index and spread as of the pricing date.
Interest Payment 

Projected Average Balance * Nominal Interest Rate / 12 * Accrual Adjustment (e.g. 365/360) taking into consideration the first payment month and payment frequency selected on the opportunity screen.

This is the interest accrual as it would appear to the borrower.

For example, for an amortizing loan, if the payment frequency is quarterly, then the interest payment will appear every 3 months in conjunction with the quarterly principal payment. 

Projected Repay The projected principal payment including any Single Monthly Maturity payment as determined by the Constant Prepayment Rate and based on the payment type structure, payment frequency, first payment start date, and interest calculation (accrual method) ie Actual/360, etc. selected on the Opportunity Screen.
Monthly Prepayment  Projected Average Balance * Prepayment Rate / 12
Accrual Interest Income 

Projected Average Balance * Nominal Loan Rate / 12 * Accrual Adjustment (e.g. 365/360)

This is the monthly interest accrual as it would appear to the bank.

Origination Fees  Allocation of Origination Fees (including the Upfront Premium Received on a participation loan) paid either 1) on a weighted average basis across each month of duration based on Projected Average Balance OR 2) divided equally among each month in maturity depending on which method is selected at the regional level. If a participation loan includes an Annual Interest Rate Premium, the Annual Interest Rate Premium/12 is also added. This will also include the Swap Fee in the first month if applicable. 
Origination Expenses 

Allocation of Origination Expense (including the Origination expense entered under Additional Expenses in the Participation field and guarantee origination expense if applicable) on a weighted average basis across each month of duration based on Projected Average balance.

Note: This value can also be adjusted based on scaling factors applied to risk ratings

Monthly Tax Exempt Impact

For tax exempt loans, shows the monthly tax exempt impact for the loan.

Index Scaling Impact

For tax exempt loans with a scaling factor <100%, shows the monthly index scaling factor impact.

Cap/Floor Impact 

For floating and adjustable rate loans, the monthly cap/floor impact based on cap/floor value and cap/floor approach method relative to the nominal interest rate.

Interest Income 

Accrued Interest Income + Origination Fees - Origination Expense + Cap/Floor Impact+ Tax Exempt Impact. 

The average of the annual totals of this column is the interest income displayed on the Financial Statement.

Servicing Expense 

Annual Servicing Expense/12

Note: This value can also be adjusted based on scaling factors applied to risk ratings

Participation Servicing Expense Using the Annual Servicing Amount entered under Additional Expenses in the Participation field: Annual Servicing/12
Guarantee Servicing Expense  The monthly guarantee servicing expense (if configured in product assumptions)
Unused LOC Fees (Unused Commitment [not shown in the table] * Unused Fee %)/12
Annual Fees  Annual Fees (excluding Unused LOC fees)/12
Average Liabilities  When capital is not included in funding, this equals the Contractual Average Balance. When capital is included in funding, this equals (1 - Equity %) * the Contractual Average Balance

CoF Rate (Pre LP) 

The weighted sum of the corresponding funding curve rates as part of strip funding excluding Liquidity Adjustments weighted by the principal repayment amounts

LP Rate 

The weighted sum of the corresponding liquidity curve rates, as part of strip funding, weighted by the principal repayment amounts.

Unfunded LP Rate 

Depending on how administrators defined regional assumptions, this will be either 1) The transfer duration rate for the unpaid principal balance at a point on the funding curve * the liquidity factor OR 2) the unused line cost rate. You can view the method used on the General Tab of the Assumptions Screen.

CoF for Liabilities 

The sum of average liabilities * the sum of the CoF Rate, LP Rate, and Unfunded LP Rate. 

The average of the annual totals of this column is the Interest Expense displayed on the Financial Statement.

Net Interest Income

Interest Income - CoF for Liabilities

The average of the annual totals of this column is the Net Interest Income displayed on the Financial Statement.

Loss Provision Rate  The expected loss rate based on risk rating, outstanding balance,  principal repayment, and any collateral or guarantee mitigation at that point in maturity
Loan Loss Provision  The expected dollar amount of loan loss provision at the maturity point based on the loan loss provision rate.
Earnings on Capital

The Earnings on Capital for the month, when Earnings on Capital is greater than 0 and capital isn't included in funding at the region level. 

The average of the annual totals of this column is the Earnings on Capital displayed on the Financial Statement.

Average Other Capital  The projected monthly Operational and Market Risk Capital allocation (also named unmitigatable capital) based on the Projected Average Balance.
Average Credit Capital  The projected monthly Credit Capital based on the Projected Average Balance
Average Economic Capital 

The projected monthly Economic Capital needed based on the Projected Average Balance. This is also the sum of Average Other and Average Credit Capital.

The average of this column is the Average Economic Capital displayed on the Financial Statement.

Average Regulatory Capital 

The projected monthly Absolute Minimum Capital allocation needed based on the Projected Average Balance. 

The average of this column is the Average Regulatory Capital displayed on the Financial Statement.

Average Capital Employed

When using the "Maximum of Regulatory and Economic Capital", this will be the greater of either the Regulatory or Economic capital for the month. If only Regulatory or Economic are used, this will be the same value as the capital selection. 

The average of this column is the Average Equity displayed on the Financial Statement.

 

Additional Information

On the math behind the calculations: How Does the Math Work?

On capital calculation: How to Determine Capital Calculation

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