Loan Policy

• Overall loan portfolio risk should average four or better.
• Loan to deposit ratio should generally not exceed 100%
• Commercial, Agriculture, multifamily, or other non-owner occupied 1 to 4 family residential properties should not exceed 30% of total capital.
• BDOs shall prepare workout plan for credits $100,000 and above AND that RR6 or worse.
• Loans that risk rate 1-4 and have total relationship exposure between one million and two million can be approved with two signatures from CRMT
• All loans greater than $600,000 with risk rate 5-9, unless specifically carved out, will be reviewed by loan committee
• Credit analysis team will perform financial reviews and global cash flows on customers with total relationship exposure over $1,000,000 or, were specifically requested by the CRMT annually. An annual renewal or new loan request satisfies this requirement.
• Loans made to a trust or that involve a trust in any way, should first have the trust documents reviewed by a member of CRMT, who then can refer the review to legal if needed.
• Overdraft approval of commercial and ag credit relationships with risk rating six or worse for which there is no availability on a current revolving credit will require approval from CRMT
• A renewal is characterized by the gathering and reviewing of updated financial information and other materials to allow the loan to be underwritten fully, complete with a financial analysis and a reset of terms
• An extension is defined as moving a payment on a loan to a later date AND rolling back the maturity by the number of months extended.
• A payment deferral is defined as moving a contractually due payment without affecting the other terms, including maturity, of the loan.
• The bank may hold OREO for a period no longer than 5yrs per South Dakota codified law. An extension request must be directed to the director of state banking.