Fiserv Solutions From Sageworks
Jack Rash
Director – Financial Markets
Sageworks, Inc
919-851-7474 x 659
Press Release
© 2012 Fiserv, Inc. or its affiliates.2
600+ Clients from $25M to $20B
180+ are Fiserv clients
Who is Sageworks?
• Located in Raleigh, NC
• Privately held
• 140+ employees
• SOC 1 Type II Certified
• Clients in all 50 states
• 600+ clients up to $20B
© 2012 Fiserv, Inc. or its affiliates.
• 600+ clients up to $20B
• 180+ Fiserv clients already
• All solutions are ASP – Hosted
• Provides real-time industry data on privately held companies to itsclients and as an expert source for the Wall Street Journal, CNBC,Fox, Bloomberg, and many others.
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Typical Scenario – Disconnected Systems
Covenant Compliance
© 2012 Fiserv, Inc. or its affiliates.
Exception Tracking
Core Processing System
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Portfolio RiskManagement
Portfolio RiskManagement• Incomplete Scenarios
Risk Rating• Reactive• Subjective
Loan Administration• Labor intensive• Disconnected
Challenges for Financial Institutions
© 2012 Fiserv, Inc. or its affiliates.
Cash Flow Analysis• Inconsistent• Incomplete
• Incomplete Scenarios• Difficult to do accurately
• Subjective
ALLL• Not defensible• Inefficient process
Challenges
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One Integrated Solution for Portfolio Management
Standardized Cash Flow:
Analyst
Consistent Risk Rating:
Certainty
Sageworks Integrated Solutions
You get the right information at the right
time, so you can make the right decisions.
Single entry
© 2012 Fiserv, Inc. or its affiliates.
Certainty
Portfolio Risk Management:
Clarity
ALLL:
Surety
Exception Tracking:
Monitor
Core ProcessingSystem
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Single entryof data
Sageworks Clarity™Portfolio Stress Testing Solution• Forecast with confidence• Objectively plan for the worst-case
Sageworks Certainty™Risk Ratings• Identify problem loansearly• Know credit quality
Sageworks Monitor™Loan Administration and Tracking• Have a pulse on the portfolio• Free up staff resources
Solutions
© 2012 Fiserv, Inc. or its affiliates.
Sageworks Analyst™TruGlobal™ CreditAnalysis• Standardize cash flowanalysis• Improve accuracy
Sageworks Surety™ALLL Solution• Validated & Defensible• Improve quality and savesubstantial timeSolutions
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Sageworks Management Reporting™• Customize presentations for the Board or examiners• Easily access the information traditionally impossible
to assemble quickly
FinancialStatement and
Cash Flow
AnalystTM
Risk RateManagement
Collateraland Policy
PortfolioStress Test
AllowanceAllocation
© 2012 Fiserv, Inc. or its affiliates.
Cash FlowAnalysis
ManagementManagement
Stress Test Allocation
AnalystFinancial Statement and Cash Flow Analysis
• Analyst Features
• Input screens that mimictax forms
• Aggregatespersonal/business/guarantors
• Dynamic narrative analysis
• Your Goals
• Easy input of tax and financial data
• Global cash flow analysis
• “What-if” scenarios and projections
• Streamlined credit memo prep
© 2012 Fiserv, Inc. or its affiliates.
• Dynamic narrative analysis
• Real-time integration to privateindustry data
• Peer comparison and benchmarking
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Tax Return Input Mirrors Physical Returns• Analyst Features
• Input screens that mimictax forms
• Your Goals
• Easy input of tax and financial data
Associated tax schedulesare supported
© 2012 Fiserv, Inc. or its affiliates.
Input screens mirrortax forms:
•Business•Personal guarantors•Real estate
are supported
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GAAP Financial Statement w/ Schedules
Associated LedgerSchedules Are Supported
© 2012 Fiserv, Inc. or its affiliates.
Input Screens MirrorFinancial Statements:
• Income Statement• Balance Sheets• Equity• Real Estate
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Analyze Single Entities or Global Groups
Business(es) Personal Guarantor(s) Real Estate
© 2012 Fiserv, Inc. or its affiliates.12
Eliminates Double-Counting
TruGlobal™The true financial picture of an entity
Evaluate the impact of proposed loans
Live Excel Output• Analyst Features
• Aggregatespersonal/business/guarantors
• Your Goals
• Global cash flow analysis
Enables you to adjust termsof proposed/refinanced
loans to view impact
© 2012 Fiserv, Inc. or its affiliates.
Accurately assessesimpact on Global
Debt ServiceCoverage Ratio
EliminatesDouble-counting
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AutomaticallyCalculates
Accurate Ratios
Automatic Ratio Calculation w/ ComparativeIndustry Data
© 2012 Fiserv, Inc. or its affiliates.
Automatically CalculatesAccurate Ratios
Dynamic Narrative Reporting & Peer Comparison
© 2012 Fiserv, Inc. or its affiliates.
Projections w/ Line Item Manipulation• Analyst Features
• Scenario-driven processing engine
• Your Goals• “What-if” analysis and projections
© 2012 Fiserv, Inc. or its affiliates.16
FinancialStatement and
Cash Flow
Risk RateManagement
Collateraland Policy
PortfolioStress Test
AllowanceAllocation
CertaintyTM
© 2012 Fiserv, Inc. or its affiliates.
Cash FlowAnalysis
ManagementManagement
Stress Test Allocation
CertaintyRisk Rating Management
• Certainty Features
• Embedded qualitative andquantitative variables
• Parameter-driven scoring engine
• Real-time reporting engine
• Document assembler engine
• Your Goals
• Bank defined risk factors
• Automated calculations
• Early warning alerts
• Automated documentation
© 2012 Fiserv, Inc. or its affiliates.18
Objectivity to a Subjective Process
• Certainty Features
• Embedded qualitative andquantitative variables
• Your Goals
• Bank defined risk factors
© 2012 Fiserv, Inc. or its affiliates.
Incorporate your ownqualitative risk factors
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Set Predefined Templates
Choose a Predefined Risk
© 2012 Fiserv, Inc. or its affiliates.
Choose a Predefined RiskTemplate That Best Fits the
Loan/Client
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Systematized Weighting System
• Certainty Features
• Parameter-driven scoring engine• Your Goals
• Automated calculations
Flexible risk weightingand criteria based onthe “5 Cs of credit”
© 2012 Fiserv, Inc. or its affiliates.
the “5 Cs of credit”
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Tracking of a Loan’s Performance
• Certainty Features
• Real-time reporting engine• Your Goals
• Early warning alerts
© 2012 Fiserv, Inc. or its affiliates.22
Easily Generated Reporting
• Certainty Features
• Document assembler engine• Your Goals
• Easy and efficient documentation
© 2012 Fiserv, Inc. or its affiliates.23
FinancialStatement and
Cash Flow
Risk RateManagement
Collateraland Policy
PortfolioStress Test
AllowanceAllocation
MonitorTM
© 2012 Fiserv, Inc. or its affiliates.
Cash FlowAnalysis
ManagementManagement
Stress Test Allocation
MonitorCollateral and Policy Management
• Monitor Features
• Built-in workflow engine
• Built-in correspondence engine
• Built-in data import engine
• Built-in alert engine
• Your Goals
• Document and policy exceptiontracking
• Automated client correspondence(letter/email)
• Imports data from core, financialsand tax forms
• Early warning alerts for calls,
© 2012 Fiserv, Inc. or its affiliates.
• Early warning alerts for calls,ticklers, document, insurance,collateral, covenant
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Track Outstanding and Upcoming Ticklers
• Monitor Features
• Built-in workflow engine• Your Goals
• Document and policy exceptiontracking
Dashboard task viewfor delegated tasks
© 2012 Fiserv, Inc. or its affiliates.
Add documents
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Dashboard by Customer, Officer, or Type
• Monitor Features
• Built-in real-time alert engine
• Your Goals
• Early warning alerts for calls,ticklers, documents, insurancecollateral, covenants
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Early Warnings
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Automates Correspondence, with BankDefined Narrative
• Monitor Features
• Built-in correspondence engine• Your Goals
• Automated client correspondence
© 2012 Fiserv, Inc. or its affiliates.29
Client Testimonials
“Everyone at FSB has been completely blown away with the outstandinglevel of service and response from everyone at Sageworks!…I haven’t seena level of service and response like your company offers, in many, manyyears. In fact, I’d sort of given up on the notion than anyone still did that!Seriously, I am a very, very happy client.”
Frank CallisonFirst South BankSpartanburg, SC
“Monitor has improved our document tracking abilities immensely. The Monitormodule and its additional reporting and tracking capabilities were recently
© 2012 Fiserv, Inc. or its affiliates.30
“Sageworks software is very user friendly and their customer servicedepartment is exceptional. We have had a great experience withSageworks. They are an asset to us.”
Laura McKenzieVista BankAiken, SC
module and its additional reporting and tracking capabilities were recentlycommended by a regulatory agency as a vast improvement to our LoanPortfolio Risk Management efforts.”
Patrick H. CareyThe First National Bank of SycamoreSycamore, OH
FinancialStatement and
Cash Flow
Risk RateManagement
Collateraland Policy
PortfolioStress Test
AllowanceAllocation
ClarityTM
© 2012 Fiserv, Inc. or its affiliates.
Cash FlowAnalysis
ManagementManagement
Stress Test Allocation
ClarityPortfolio Stress Testing
• Clarity Features
• Dynamic concentration filters
• Dynamic variable engine
• Instantaneous Detailed Analysis
• Built-in data import engine
• Your Goals
• Customized scenarios(single and pooled)
• “What-if” analysis (many variables)
• Identify potential problem areas
• Data extracts from core and FDIC
© 2012 Fiserv, Inc. or its affiliates.32
Build Concentrations
• Clarity Features
• Dynamic concentration filters
• Dynamic variable engine
• Your Goals
• Customized scenarios(single and pooled)
• “What-if” analysis
© 2012 Fiserv, Inc. or its affiliates.
Target selected loans
Adjust stress factors
Set Target Ranges and See PotentialImpairment
• Clarity Features
• Instantaneous detailed analysis• Your Goals
• Identify potential problem areas
© 2012 Fiserv, Inc. or its affiliates.34
See Scenario Impact on Bank Financials
• Clarity Features
• Automated executivesummaries/reports
• Your Goals
• Identify potential problem areas
© 2012 Fiserv, Inc. or its affiliates.35
FinancialStatement and
Cash Flow
Risk RateManagement
Collateraland Policy
PortfolioStress Test
AllowanceAllocation
SuretyTM
© 2012 Fiserv, Inc. or its affiliates.
Cash FlowAnalysis
ManagementManagement
Stress Test Allocation
SuretyAllowance for Loan and Lease Loss Management (ALLL)
• Surety Features
• Pooled loan analysis usingmigration or historical lossrate approach
• Impairment analysis:Present Value, Fair MarketValue Collateral and LoanPricing
• Your Goals
• Automated FAS5 reserve calculation
• Automated FAS114 reserve calculation
• Automated documentation
• Incorporate macroeconomicdata/graphs
© 2012 Fiserv, Inc. or its affiliates.
Pricing
• Customizable disclosurenotes/comments
• Real-time data import fromFDIC/FRED
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“The ALLL represents one of the most
significant estimates in an institution’s
financial statements and regulatory
reports…each institution has a
responsibility for developing,
Interagency Policy Statement
© 2012 Fiserv, Inc. or its affiliates.
This will be an icon.
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responsibility for developing,
maintaining, and documenting a
comprehensive, systematic, and
consistently applied process for
determining the amounts of the ALLL
and the provision for loan and lease
losses.”
Sageworks Surety: Independently Validated byNational CPA Firm
Procedure 1 – Tested for accuracy in calculation:“No differences were noted” for ASC 310-10-35; ASC 450-20
Procedure 2 – Tested for data integrity pulled from externalinformation sources: “We noted no exceptions.”
Procedure 3 – Tested various aspects of the calculation:General Reserve Loans / ASC 450-20:
© 2012 Fiserv, Inc. or its affiliates.
General Reserve Loans / ASC 450-20:“Less than 0.006% difference – determined to be immaterial.”Specific Impaired Loans / ASC 310-10-35:“No exceptions noted.”Qualitative Risk Factors:“All factors are in line with current Interagency Policy Statement.”
Procedure 4 – Compare components of Surety to US GAAP:“Application provides the user with the ability to comply under GAAP.”
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Tie with the FRED for Pooled LoanAnalysis
• Surety Features
• Pooled loan analysis using migrationor historical loss rate approach
• Your Goals
• Automated FAS5reserve calculation
© 2012 Fiserv, Inc. or its affiliates.
Economic data fromFederal Reserve
Adjust qualitative risk factors anddocumentation for defensible strategy
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Integrated Impairment Analysis
• Surety Features
• Impairment analysis: Present Value,Fair Market Value Collateral andLoan Pricing
• Your Goals
• Automated FAS114reserve calculation
© 2012 Fiserv, Inc. or its affiliates.
Clear and Defensible Documentation
© 2012 Fiserv, Inc. or its affiliates.
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Other Features: ASU 2010-20 Disclosure Reports
Utilize ManagementReporting for buildingcustomizable reports o
© 2012 Fiserv, Inc. or its affiliates.43
Standardizedtemplates for ASU2010-20 Disclosures
Eliminate Data Entry with Data Feeds
FiservCore
Collateral andPolicy
ManagementEngine
AllowanceAllocation
Stress TestEngine
FDICFRED
Customer Extract
Loan Extract
Real-time Bank Data
Real-time Peer Bank Data
© 2012 Fiserv, Inc. or its affiliates.
AllocationEngine
FRED Real-time Peer Bank Data
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Your Organizational Benefits
PresidentCFOChief CreditOfficer
Loan Officers&
Credit Admin
Operations& IT
ExaminersAuditors
External LoanReview
Compliance
© 2012 Fiserv, Inc. or its affiliates.45
TransparencyDefensible ProcessesReal-time ReportingEarly Warning AlertsImproved EfficiencyEasily Satisfy RegulatoryRequirements
Detailed Security LevelsSystem Business RulesCentralized Data Repository
Simple Data ExtractsBuilt-In Report WriterNo Software to ManageNo Hardware RequirementsEmbedded IntegrationBetween Applications& to FDIC & FRED
Documented ProcessesEmbedded Peer BenchmarksInstant Audit TrailSecure
ConsistencyAccuracyNo More ExcelImproved DecisioningIndustry IntelligenceBusiness Development Tool
Your Loan Management Processes
Fiserv’s Loan Administration Suite by Sageworks
ClarityTM SuretyTM
PortfolioStress Test
AllowanceAllocation
FinancialStatement and
Cash FlowAnalysis
AnalystTM MonitorTMCertaintyTM
Risk RateManagement
Collateraland Policy
Management
© 2012 Fiserv, Inc. or its affiliates.46
Consistent and completeAccurate and standardizedResultImproved credit qualityEfficient meetings
ProactiveObjectiveResultEarly warning alertsMore accurate ALLLreserves
AutomatedStreamlinedResultOne-click reportingLower overhead costs
ComprehensiveEasy and accurateResultFully preparedModel entire portfolioForecast with confidence
DefensibleEfficient processResultSatisfy regulatory requirementsPeace of mind
AnalysisManagement
Questions?
For further information contact your AE who I partner with or feel free toreach out to me directly:
Jack Rash
Director –Financial MarketsDirector –Financial Markets
919-851-7474 ext. 659
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