ARCS Overview ARCS is an Enterprise Loan Management System designed for banks that manage large loan portfolios. Based on client feedback, the Key Benefits are: significant cost savings increased revenue opportunities reduced regulatory risk significant time savings particularly at the executive level ARCS enhances your existing core system by providing an accurate snapshot of a loan, a subset of loans, or the whole portfolio without the frustration, cost, and risk associated with using spreadsheets or other manual processes. The system provides examiners and auditors with a clear picture of each loan and how the bank manages its loan portfolio. This results in fewer exam write-ups and an overall reduction in exam preparation and post-exam corrective actions. ARCS allows banks to realize significant process improvement resulting in a single system of record and audit trail for critical loan changes and updates. It provides consistent reporting across multiple departments and locations and faster, more accurate answers to both basic and complex questions from management, loan customers, examiners, and Boards of Directors. We believe banking systems should be simple and intuitive. We believe all of your loan information should be at your fingertips. Our clients tell us they have been waiting for a system like ARCS for years. Contact us today to for a free demonstration and learn how ARCS can transform your bank s business. Ø I love the ease in which I can pull up a quick snapshot of a loan it s 10 times easier than it was before. I m in there every day for something we don t even go into the core system anymore Ø It sure makes the flow easier to understand for an auditor. The have had a hard time understanding how the flow works without ARCS. Now it is so much easier and precise it really makes it clear for them. CCO, $10B Dallas Bank Ø When a credit problem arises, I need to know what is going on with the loan. ARCS is the quickest way to see who is looking at it, the discussions around it, the recent approvals or changes to it, etc. This leads me to make better decisions and act more forcefully. CEO, $1.2B Kansas City Bank Ø ARCS is revolutionizing the way we do things around here VP Loan Operations, $1.7B bank 1
Key ARCS Features Online Working File User-friendly access and consolidation of all loan information, including collateral detail, risk rating and charge-off approvals, borrower details, loan narrative, NRV analysis, and file attachments. Daily loan level snapshots allow for easy rollback to any prior as of date. 2
Approval Requests Changes to critical loan values, such as risk ratings, charge-offs, and TDRs, are controlled through an electronic approval request workflow with customizable, dynamic approval flow to match the bank s credit policy. 3
Automated WatchList (Criticized/Classified Asset List) Loans move on and off a real time WatchList via electronic approvals, thereby automating the bank s Criticized/Classified Asset Reporting. 4
Advanced Loan Review Management Manages planning of targeted loan reviews and audits Reviews can be performed at the loan level or relationship level Supports unlimited loan review templates that can be easily tailored to match an institution s reporting style Previous loan review narrative automatically flows into future loan reviews with updated loan balances Records loan level findings and policy exceptions Key recommendations flow to automated approval process (risk ratings, TDRs, non-accrual, charge-offs, impairments, etc.) Provides portfolio level analysis of review activity and findings 5
Pipeline Loan Management Pipeline loan workflow with integrated approvals and reporting. 6
ASC 310-10 Impairment Analysis Automated support for analyzing, documenting, justifying, and approving loan impairments using standard ASC 310-10 (FAS 114) processes. Net Realizable Value (NRV) calculations automatically flow into justifications that can then be approved by multiple designees, with approval and tracking of resulting loan level impairment actions. A comprehensive ALLL / CECL solution is also available. 7
Detailed Collateral and Appraisal Management Support for unlimited collateral per loan, cross collateralization, and multiple appraisals and valuations per collateral. Appraisal certifications ensure the most accurate valuations are reflected on reports, LTV, NRV, and exposure calculations. 8
Legal Lending Limit Toolset Detailed management of borrower and prospective borrower relationships with critical adjustments needed for accurate loans-to-one-borrower analysis. Sophisticated logic identifies complex relationships across customers. Top borrowers dashboard and reports with drilldown analysis. 9
Powerful Reporting Over 70 prebuilt portfolio reports Trend analysis and historical reporting Ad-hoc reporting via standard Microsoft tools or other Business Intelligence solutions 10
Other Features Supports all loan types, including commercial, residential and consumer Auto-grading feature for non-commercial loans Advanced back-dating and as of data management Proactive monitoring of portfolio concentrations by type, geographic area, industry, etc. Automated interfaces to servicing systems and other sources of critical loan data, ensuring correctness and completeness of the loan working file and reports Rich access controls and audit trail Seamless integration with Microsoft Excel Scalable technology to meet any size organization, regardless of users or portfolio size ARCS is built on the latest Microsoft.NET platform, and can be rapidly enhanced to meet the unique needs of your institution. We offer low cost licensing options that minimize up front capital costs, and can have your bank up and running in 30-45 days. About VSI Solutions VSI Solutions was founded in 1999 in Plano, TX. Its founders had years of experience developing mission critical business systems using agile software development techniques. Since 2002 VSI has worked exclusively with banks and other financial institutions to lead system selection, implementation, and integration projects. In 2004, VSI was chosen to build a loan review and portfolio management system for a bank heavily concentrated in commercial real estate lending. The resulting system, ARCS, is now a leading enterprise loan management solution for banks. While VSI is primarily focused on improving ARCS for our expanding customer base, we also continue to partner with $1B+ banks to lead their most critical system implementation projects to success. For more information, contact: Tom Heruska Founder/CEO VSI Solutions 5700 Granite Parkway, Suite 200 Plano, TX 75024 972.731.2574 (o) theruska@vsisolutions.com 11