THE SKY IS THE LIMIT. LEND
A HAND AND MEET YOUR GOALS.

From carpenters to international builders, all businesses depend on loans, including your institution. Use LoanEDGE™, our loan pricing tool, to attract, retain, build and grow profitable, long-term business relationships. Your Farin Advisor will roll up their sleeves and help you construct custom programs and products with profitable margins to meet your customer’s unique lending needs, as well as your institution’s income goals.

OUTPACE COMPETITORS, USE LoanEDGETM

Farin’s easy to use, interactive, web-based loan pricing solution.

LoanEDGE™ allows you to price not only a specific loan, but the entire value of each business relationship, including business and personal accounts.

SCHEDULE A MEETING

Find out how LoanEDGE
can help you make more
profitable loan offers… ►

New policy – Maximum margins!

To be competitive and maintain profitable margins, you need Loan Pricing Strategies, Policies, Programming and yes – Pricing – but there are other facets to be managed as well. Your Farin Advisors are experts in ALL of the interdependent disciplines that ultimately effect loan pricing and an institution’s ability to fund loans affordably.

In addition to our advisory services, our LoanEDGETM pricing solution, will help you make the most of your pricing strategies. LoanEDGETM is a web-based loan and relationship profitability measurement tool, which enables your management team and front line staff to easily and quickly calculate the value of a business relationship based on your specific profitability guidelines.

Whether you’re simply interested in bouncing ideas off an objective third party or would like help presenting long-term funding ideas to your board, your Farin Advisors are ready to help.

Why Trust Your Loan pricing to Farin & LoanEDGE™?

OUR EXPERIENCE

  • Farin knows Loan Pricing. We have over a century, literally, of retail banking experience – actually developing (while formerly employed at institutions) and helping our clients develop successful pricing policies, programs and offers.
  • Farin is recognized by institutions, regulators and trade associations as industry leading Loan Policy, Program and Pricing Experts. LoanEDGE™ is recognized as a top performing Loan Pricing, web-based software available for institution use in the industry.
  • Your Farin LoanEDGETM support team will help you implement the LoanEDGETM model, get up and running, and trouble shoot when you run into issues.

OUR FOCUS

  • We focus on advisory services and financial analysis. We are not distracted by other lines of business such as data processing or funds management.
  • Exceptional customer service is our goal. We are just the right size – big enough to provide cutting edge financial analysis, yet small enough to give you the attention you deserve.

“… LoanEDGE™ eliminates arbitrary loan decision making – all of the risks associated with a loan are quantified based on the characteristics of the loan. You easily can tell if a loan will hit your profitability target. The model’s reporting feature makes it easy, it calculates everything for you – plug and play.”

Steve Craven, Farin Senior Client Consultant, Loan Pricing Advisor

Getting started with LoanEDGETM

Starting with a face-to-face meeting of key decision makers, including your institution’s Chief Lending, Risk and Financial officers, the Farin team will help your institution develop a full understanding of the strategies and products previously offered and any obstacles to meeting growth goals your institution may face. During the session, your team will tackle critical issues and build profitable solutions to meet the competing needs of your Lending and Finance teams, concluding with an understanding between those teams on critical assumptions impacting loan pricing, as well as a set of guidelines to follow and goals for each lending area to achieve.

In-depth training on LoanEDGETM software

Your Farin Advisor will provide in-depth training on the LoanEDGETM model, including how it should be used by management for pricing decisions and at the loan officer level to calculate loan and total relationship profitability or “TRP.”

LoanEDGETM – incorporates the key aspects of:

ADVISORY SERVICES

PRICING STRATEGY

PLANNING PROGRAMS AND OFFERS

MODELING SCENARIOS

EDUCATION

“If you’re a loan officer looking to make a deal – and you know your competition has made a good offer – LoanEDGE™ can help you make a deal that works for everyone. LoanEDGE™ allows you to start throwing in some new accounts – a line of credit, a new bank account – the additional accounts in the mix raise up the overall profitability measure so that the bank can live with the loan offer and your customer gets what they want in terms of their loan. If I were a loan officer, I would talk to customer about their commercial accounts, as well as their personal accounts.”

Steve Craven, Farin Senior Client Consultant, Loan Pricing Advisor

LoanEDGETM FEATURES AND BENEFITS

  • Strategic tool designed to add structure and discipline to the pricing process
  • Detailed documentation to support lending decisions – ideal for regulatory compliance
  • Relationship pricing feature will help make your institution more competitive
  • Easily accessible and consistently updated, web-based tool
  • Measures the profitability of each transaction using four benchmarks (see below)
  • Easily set Institution specific ROA and/or ROE targets
  • Administrative level control over key decision making criteria, including credit loss and expenses
  • Customizable to reflect your institution’s specific credit loss ratios, origination fees, prepayments and expenses
  • Simple to understand and easy to master
  • Streamlined implementation; your model can be configured and installed in a few days
  • Web-based training and support tools – users can be set up in a few hours
  • Expert initial and ongoing advisory services and guidance provided by your Farin team
  • Available with prepopulated loan and deposit chart of accounts or can be built using a customized chart

“… We really appreciate Farin’s LoanEDGETM model that we use to help us with our commercial loan pricing … We are better equipped to price for differences in credit score, loan term, and dollar amount for each loan type. And we just made 1.5% to 2% loan rate changes for FICO scores.”

Margaret Hasenbeck, Vice President/CFO Community Credit Union of Florida, Central Florida

PLANNING FOR LOAN GROWTH…

Read Tom Farin’s article ►

THE FUNDAMENTALS OF LOAN PRICING — 2 PART WEBINAR

Tom Farin breaks it down
for you — Watch Now ►

LoanEDGE™ METRICS

Retail Investment Benchmark

Horizon Return on Assets

Horizon Return on Equity

Annual Net Income

Your institution can set target Return on Assets and Return on Equity. These targets are controlled by the Administrator and cannot be manipulated by users.

The LoanEDGETM model utilizes Farin’s extensive data base of investment options, including historical market rates, alternative funding sources, and prepayment tables. As these indexes change, the model is updated daily with the most recent data, which assures each time a deal is constructed it is being calculated using the most current information.

During your initial in-depth training session on the model, your team will also learn how to use the metrics to your advantage for pricing decisions and at the loan officer level to calculate loan and relationship profitability.

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FARIN LOAN PRICING VIDEO HEADLINE

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FARIN LoanEDGETM REPORT EXAMPLE

Steve Craven

Senior Client Consultant
608-661-4215
scraven@farin.com

“One of the most important features in LoanEDGE™ is the ability to measure customer or member Total Relationship Profitability or TRP. Give me a call to discuss this, it will be a great help to you in creating profitable loan offers and building solid relationships.”

More about Steve ►

REVIEW THE COMPONENTS OF OUR COMPREHENSIVE SUITE

For 30 years we’ve specialized in core areas of Financial Risk Management and developed these tools to help financial institutions like yours plan ahead and ultimately thrive in any economic environment.