Keystone was established in 2018 to bring exceptional, technology-forward banking services with a human touch to entrepreneurs, families and individuals in the local community.

The Challenge

Keystone Bank was growing rapidly, both organically and through acquisitions, and company leadership expected the growth curve to remain steep. However, they were facing several growth-related challenges, including:

Disorganized Loan Data

As a result of multiple acquisitions, their CRE loan information was stored in various locations, versus in one central, easily accessible system. Keystone sought to combine data from more than one core system, and then identify and address any gaps.

Inefficient Risk-Assessment Processes

The bank was approaching the regulatory ratio of 300% for commercial real estate—and though regulators and the board were watching the portfolio concentrations and risk profile closely, the process was manual and time consuming. To better support their growth, Keystone desired a more robust and efficient process for understanding their risk profile, homing in on specific concentrations, and stress testing their portfolio in a variety of ways.

The Solution

Centralizing data in the Qualtik platform to streamline data analysis and reporting

First, Keystone generated CSV files of their CRE loan data, which we added to their account in the Qualtik platform to store it in one, immediately accessible location. Then, using the Qualtik CRE Dashboard, they were able to filter the data, identify gaps, and run customized reports so they could address the most material gaps swiftly and easily.

Generating customized reports from stress-test scenarios to uncover insights and risk

Keystone wanted to run several stress-test scenarios, starting with CRE collateral stress, with the goal of developing an ongoing process with Qualtik for additional stress-testing capabilities in the future. In less than 30 minutes, the bank generated reports on nine different collateral stress scenarios using varying levels of stress, filtered to specific areas of concentration most relevant to them. Not only were they able to use this valuable data in their board reports, but the Keystone CFO also used the LTV deficit portion of the collateral stress report to evaluate reserve calculations.

The Results

Through the Qualtik platform, Keystone Bank was able to:

• Centralize their loan data for greater efficiency
• Boost their stress testing and risk-management capabilities
• Generate multiple customized reports in minutes
• Drill down into the data to improve analysis and insights
• Enhance their concentration management and leveraging of capital

Today, Keystone Bank enjoys cleaner data, a repeatable process for collateral stressing, and a scalable system that allows them to more easily tackle their future objectives related to concentration reports and stress testing.