WHAT DOES A COMMERCIAL LOAN OFFICER DO?

Published: August 2, 2024 - The Commercial Loan Officer proactively fosters relationships with members and targeted businesses, guiding them towards a comprehensive range of commercial lending products. This role involves developing tailored strategies and contact plans to deepen existing relationships and cultivate new loan opportunities. Additionally, the officer ensures exceptional customer service and meets annual performance goals through effective portfolio management and cross-selling of the bank's services.

A Review of Professional Skills and Functions for Commercial Loan Officer

1. Commercial Loan Officer Duties

  • Attendance: Regular and punctual attendance.
  • Credit Evaluation: Evaluate client/applicant’s credit to determine the appropriate lending decision based on company risk-tolerance levels.
  • Collateral Assessment: Evaluate collateral by performing site visits.
  • Product Knowledge: Develop a strong knowledge of the bank’s products and identify opportunities to recommend other products or services to customers.
  • Sales Strategy Development: Assist in developing and executing sales strategies to either maintain or gain clients for increased commercial lending revenue and deposit growth.
  • Relationship Building: Foster relationships with key members of the community and build a network while continuing to service the needs of existing customers.
  • Portfolio Management: Develop, manage, and maintain a credit portfolio.
  • Regulatory Knowledge: Garner an understanding of internal bank policies and a strong understanding of banking regulations.
  • Credit Monitoring: Recognize and report deterioration in the credit quality of a loan or borrowing relationship.
  • Problem Loan Management: Assist in recommending and administering workout programs for problem loans.
  • Loan Reporting: Promptly and accurately provide required information for adversely-rated loans and take appropriate steps to protect the bank's position.
  • Credit Strategy Implementation: Work with the Chief Lending Officer and credit team to implement strategies for working out adverse credits.

2. Commercial Loan Officer Details

  • Client Development: Develops core Commercial and Industrial loan customers and relationships while supplementing overall business with Commercial Real Estate loans.
  • Credit Assessment: Interviews loan applicants and evaluates credit data, cash flow, financial statements, and collateral to determine their creditworthiness.
  • Communication: Communicates reasons for denial to applicants when their loan request has been denied.
  • Renewal Review: Reviews loan renewal requests to ensure continued creditworthiness of the applicant and timely payment of the loan.
  • Product Pricing: Prices loan and deposit products with the dual goals of enhancing bank profitability and retaining or generating customer business.
  • Approval Submission: Submits loan request memorandums to the Senior Loan Committee or appropriate authority for approval.
  • Loan Servicing: Services the loan from loan closing to the date of loan payoff.
  • Customer Satisfaction: Ensures customer satisfaction throughout the life of the loans, resolving problems as they arise.
  • NSF Review: Reviews the Nonsufficient Funds (NSF) report on a daily basis and resolves items.
  • Delinquency Monitoring: Monitors the past due list to ensure that loans are paid on a timely basis.
  • Customer Counseling: Contacts and counsels customers with delinquent accounts by phone or letter to arrange loan payment.
  • Collateral Evaluation: Inspects and evaluates collateral pledged to existing and prospective loans.

3. Commercial Loan Officer Responsibilities

  • Loan Evaluation: Evaluating loan requests and making recommendations.
  • Data Entry: Inputting information and generating necessary paperwork for loan evaluation and closing loans.
  • Business Development: Soliciting new loan business and deposit accounts from present and prospective customers.
  • Relationship Management: Maintaining ongoing business relationships with present customers in order to take advantage of additional cross-selling opportunities.
  • Referral Generation: Making referrals to other bank lines of business.
  • Sales Collaboration: Serving as a member of the bank's sales team, making joint sales calls to improve the opportunity for new business development.
  • Product Knowledge: Maintaining a thorough knowledge of the features and benefits of all bank commercial products and services.
  • Customer Service: Providing direct service to commercial customers of the bank with respect to deposit, loan, and other miscellaneous products and services.
  • Record Keeping: Maintaining records of all customer calls and meetings held with present and prospective customers.
  • Portfolio Monitoring: Monitoring loan portfolio to support risk management.
  • Delinquency Management: Contact customers who are delinquent on their loan payments.
  • Policy Implementation: Assist the Chief Loan Officer in formulating and implementing loan policies and procedures.

4. Commercial Loan Officer Accountabilities

  • Portfolio Management: Actively and effectively manages the commercial portfolio.
  • Product Development: Assists management in the development of new products and services for customers.
  • Business Growth: Works diligently with retail partners in an effort to grow business that supports the overall strategic direction of the bank.
  • Community Engagement: Participates in community activities to promote the bank’s relationship within the market.
  • Market Awareness: Keeps abreast of current market and business conditions and trends.
  • Credit Servicing: Works with portfolio managers and loan operations to effectively service existing credits to maintain portfolio integrity and quality.
  • Professionalism: Carries out responsibilities with a commitment to process excellence, the highest professionalism, respect for others, and in accordance with the organization's policies and applicable laws.
  • Financial Analysis: Analyzes complex financial data and writes detailed credit memorandums.
  • Loan Recommendation: Makes recommendations to the loan committee on new and renewal loans for amounts above the lending limit.
  • Committee Participation: Participates as a member of various bank committees.
  • Leadership: Represents the bank and provides leadership in key community activities and committees.
  • Professional Development: Participates in professional associations and attends conventions, conferences, and seminars.

5. Senior Commercial Loan Officer Functions

  • Relationship Building: Proactively contacts members and targeted businesses to create relationships with business members that guide them to use a full range of commercial lending products.
  • Financial Guidance: Works one-on-one with members to fully understand their financial objectives and assist with business solutions to meet current and future lending needs.
  • Client Follow-up: Regularly initiates contact with business members and prospects to follow up on previous conversations and uncover additional needs.
  • Portfolio Review: Reviews current holdings relative to financial needs.
  • Strategy Development: Develops individualized strategies and contact plans for each business member in the targeted segmentation and branch footprint to deepen relationships.
  • Loan Enhancement: Enhances current loan relationships and generates new loans.
  • Community Engagement: Attends Langley/community functions to promote business lending.
  • Training: Assists in the training of less experienced commercial loan officers.
  • Performance Management: Meets annual performance goals and manages the existing portfolio.
  • Cross-Selling: Cross-sells products to new and existing clients to promote services offered by the bank.
  • Customer Service: Provides excellent customer service at all times.
  • Business Development: Makes outside business development calls.

6. Commercial Loan Officer Overview

  • Client Evaluation: Evaluate needs of potential clients and offer appropriate financial products, services, and loans.
  • Cross-Selling: Promote and cross-sell other products and services as appropriate to client requirements.
  • Relationship Management: Provide ongoing relationship servicing with current clients to maintain goodwill and gain additional business.
  • Networking: Conduct networking activities such as community events, attending local Chambers of Commerce meetings, developing relationships with centers of influence, and entertaining clients/prospects to enhance relationships and create new sales.
  • Prospecting: Conduct warm and cold prospect calls.
  • Business Generation: Generate new business to meet annual growth goals.
  • Account Opening: Prepare and compile client information to open new accounts.
  • Data Analysis: Gather and analyze financial data to assist in determining the creditworthiness of potential clients for risk and underwriting purposes.
  • Loan Preparation: Prepare loan memos and documents to submit for loan approval.
  • Documentation Accuracy: Ensure completeness and accuracy of loan documentation.
  • Loan Management: Oversee timely closing and funding of loans.

7. Commercial Construction Loan Closing Officer II Tasks

  • Credit Analysis: Analyzing credit requests and making sound credit decisions in a timely manner.
  • Customer Service: Servicing commercial customers and cross-selling appropriate products/services, including deposit and cash management products/services.
  • Collections: Collection of past due accounts and management of other owned assets, etc.
  • Field Inspections: Perform field and/or business inspections of existing and potential loan customers to verify the adequacy of collateral securing the credit, as well as evaluating the general management and condition of the operation.
  • Client Communication: Inform and advise clients of status or enhancements to current account productivity and suggest resolutions for account disputes and other account activities.
  • Problem Resolution: Coordinate and assist back office personnel in resolving credit problems, delinquent payment issues, overdrafts, and other related affairs.
  • Community Participation: Participate in various community and public events.
  • Training Completion: Complete required training associated with job function.
  • Goal Achievement: Work to meet production and quality goals.
  • Privacy Compliance: Follow all Whitefish Credit Union, Montana, and Federal information privacy guidelines.
  • Policy Adherence: Adhere to all Whitefish Credit Union policies and procedures.
  • Punctuality: Report to work on time and as scheduled.

8. Commercial Construction Loan Closing Officer II Roles

  • Leadership: Act as a leader in facilitating the completion of the end-to-end closing process.
  • Authority Management: Provide individual authority to proceed/stop the closing process due to unmet collateral or documentation requirements.
  • Transaction Management: Manage transactions at various levels of complexity and timelines.
  • Effective Communication: Communicate effectively with RM and/or PM on closing requirements.
  • Documentation Leadership: Lead the loan documentation process for both new transactions and modifications through in-depth interpretation of legal documentation to identify what is being originated, modified, or extended.
  • Legal Interpretation: Interpret and decipher related state statutes/laws to predict changes/impacts to collateral perfection, legal requirements, closing needs, and legal documentation for proceeding/stopping closing.
  • Regulatory Understanding: Possess a thorough understanding of affected federal regulations to advise on additional items in order to remain compliant.
  • Support and Partnership: Provide primary support and partnership to Relationship Managers (RM) and Portfolio Managers (PM) to ensure the transaction.
  • Quality and Risk Control: Maintain strong quality while facilitating risk control measures for the bank.
  • Compliance Coordination: Work closely with senior management, RMs, PMs, Credit Risk, Compliance, and Internal Audit partners to ensure that the credit remains in compliance with bank and regulatory policies.
  • Collateral Responsibility: Ultimately responsible for ensuring loan collateral is appropriately assessed, perfected, risk-managed, and coded in accordance with bank policies and regulatory requirements.
  • Coordination: Coordinate interactions with the RM and/or PM and internal and/or external legal counsel.

9. Commercial Construction Loan Closing Officer II Job Summary

  • Report Review: Review management reports and selected computer reports for accuracy and completeness.
  • Strategic Contribution: Contribute to the effective management of the branch by participating in the development and implementation of the short- and long-range strategies of the bank.
  • Staff Management: Manage staff and oversee delivery of services to both internal and external customers.
  • Recruitment: May conduct or assist with hiring team members within the branch.
  • Coverage Assurance: Ensure adequate coverage at all times.
  • Effective Communication: Communicate clearly and effectively with staff to provide instruction, guidance, and to develop trust and respect.
  • Coaching: Conduct regular coaching sessions with team members to review work performance.
  • Training and Development: Provide training/mentoring and develop/acknowledge individual/group performance in achieving goals.
  • Compliance Assurance: Ensure compliance with procedures, bank policies, and government regulations.
  • Performance Review: May conduct annual reviews and communicate results to staff, together with action items/goals and improvement plans.
  • Performance Management: Ensure performance is at an acceptable level.
  • Documentation and Discipline: Effectively document and address work/behavior/performance issues.
  • Consultation: Consult with supervisor and/or HR regarding formal disciplinary and/or termination procedures prior to taking action.

10. Commercial Construction Loan Closing Officer II Job Description

  • Change Leadership: Effectively and positively lead the team through change while demonstrating a positive attitude and behaviors.
  • Branch Operations: Ensure that the branch is open and ready to conduct business each business day.
  • Delegation: Delegate various operational duties to those supervised but assume overall administrative responsibility for operating the branch.
  • Maintenance Management: Responsible for the general maintenance of the branch and ensuring that the area is clear of all physical impediments for the safety and security of customers, employees, and the branch assets.
  • Security Compliance: Ensure that all security procedures are strictly followed.
  • Customer Service: Effectively address and resolve customer inquiries and problems to ensure they are handled efficiently and expediently.
  • Security Program Compliance: Responsible for ensuring compliance with the Division Security Program for the branch.
  • Compliance Review: Perform quarterly compliance reviews and complete/submit required paperwork on a timely basis.
  • Document Compliance: Ensure that all credit approval terms and conditions are appropriately represented in the closing documents and any exceptions prior to closing are properly documented.
  • Conflict Resolution: Effectively handle and resolve conflict and work with difficult employees and/or situations.
  • Credit Risk Management: Promptly address any adverse credit situations with professionalism and tact and in the best interests of the bank.
  • Risk Awareness: Ensure management is aware of potential risks as they arise.
Relevant Information
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